Temporary 2-home disposal deadlines and transitional rules in Korea
See why the effective date, acquisition, disposal and evidence of earlier contracts matter when replacing a home in designated areas.
Updated Nov 7, 2026
The decree sets different disposal windows
The Income Tax Act Enforcement Decree amendment effective 2026-10-01 set a 2-year window from acquisition of the new home to disposal of the old one when both homes are in designated adjustment areas at acquisition, subject to exceptions. Article 155 provides a 3-year general window outside that category.
Check the effective date and transitional rules together
The transitional provision generally applies the amendment when a new home in a designated adjustment area was acquired on or after 2026-08-04 and the old home is sold after the decree took effect. Earlier contracts and documented deposit payments may qualify for transitional treatment, so the acquisition date alone may be insufficient.
The disposal deadline is one condition for tax treatment
This case covers the disposal deadline for temporary 2-home treatment for capital gains tax. Actual exemption depends also on household ownership, the interval between acquisitions, holding and residence requirements, designation dates and exceptions. Lease expiration and land transaction permit conditions are separate.
Sources
- Korean Law Information Center | Income Tax Act Enforcement Decree Article 155Accessed Nov 7, 2026
- Korean Law Information Center | Amendment and addendum to Presidential Decree No. 36737Accessed Nov 7, 2026
- Korean government policy briefing | Entry into force of housing tax changesAccessed Nov 7, 2026