An enforcement decree revision that exempts multi-home owners from heavy capital gains taxation on properties in adjustment target areas if they apply for land transaction permits by November 9 has passed the Cabinet.
The government said it approved the revised enforcement decrees of the Income Tax Act and the Real Estate Transaction Report Act at a Cabinet meeting presided over by Prime Minister Kim Min-seok at the Government Complex in Seoul on Tuesday. As a result, the moratorium on heavy capital gains taxation for multi-home owners holding properties in adjustment target areas is expected to end on November 9.
However, the government decided not to apply the heavy tax rate in cases where a land transaction permit is filed by November 9. The measure reflects the time required to obtain land transaction permits for property transfers.
The Cabinet meeting also passed a revision to the Enforcement Decree of the Financial Investment Services and Capital Markets Act, which eases regulations to allow the launch of single-stock leveraged exchange-traded fund (ETF) products based on shares such as Samsung Electronics (005930.KS) and SK hynix (000660.KS). The revision raises the ceiling on the proportion of derivatives held in ETFs and permits the operation of ETFs that use only securities of a single stock as underlying assets.
A revision to the Public Official Election Act, which introduces a multi-member district system for the first time in metropolitan council elections in the upcoming June 3 local elections and raises the proportion of proportional representation seats among metropolitan council members, also cleared the Cabinet. As a result, the number of local council seats will increase by 80 from the 2022 quota.
The Cabinet also approved a draft Patient Rights Framework Act, which comprehensively covers patients' rights and obligations, and a revision to the Child Welfare Act that strengthens guarantees for the right to education of children who have suffered abuse. Approval was also given to spending approximately 1.8 billion won to support operating expenses for the preparatory team for the Serious Crimes Investigation Agency, a new body to be established under the Ministry of the Interior and Safety alongside the abolition of the Prosecution Service in October this year.
