Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
9 tourist destinations included in 'second home' policy to bolster housing markets with waning populations
Vacationers enjoy the summer at Sokcho Beach in Gangwon Province on Aug. 2. Sokcho is one of nine areas newly added to the so-called "second home" policy, aimed at tackling rural depopulation. Yonhap
By Yi Whan-woo
Nine popular tourist destinations will be added to the list of rural cities and smaller regions with housing tax exemptions for second property purchases, according to government officials on Thursday.
The new locations are Gangneung, Donghae, Sokcho and Inje in Gangwon Province; Iksan in North Jeolla Province; Gyeongju and Gimcheon in North Gyeongsang Province; and Sacheon and Tongyeong in South Gyeongsang Province.
Announced during an economic ministers’ meeting on Thursday, these areas will join the existing list of 83 regions covered under the so-called “second home” policy.
First introduced in 2024 under the Yoon Suk Yeol administration, the policy is aimed at combating depopulation in rural communities.
It offers exemptions on three types of housing taxes — property tax, capital gains tax and the comprehensive real estate tax — to homeowners from outside the designated regions who purchase a second property in one of the areas covered by the policy.
While all 83 regions are considered at risk of extinction, authorities were initially cautious about including popular tourist destinations due to concerns it might encourage speculative buying.
The inclusion of the nine new areas is noteworthy, officials say, as many are known for their coastal scenery, natural landscapes, local cuisine, historical sites and other tourism attractions.
“Buyers who purchase a home in designated areas will now receive expanded tax benefits, even if the property is used as a second home or vacation residence,” the Ministry of Economy and Finance said.
To broaden the reach of the program, the maximum home price eligible for exemptions on property tax, capital gains tax and the comprehensive real estate tax will be raised to 900 million won ($650,000) from the current 400 million won.
Additionally, the threshold for receiving up to a 50 percent acquisition tax reduction will increase from 300 million won to 1.2 billion won.
However, these benefits will not be available to those buying additional homes in the same region, or who already own two or more homes.