Politics · South Korea · 2 days ago
Daegu Seeks Tailored Housing Measures for Regional Markets
The city of Daegu in South Korea has asked the national government for measures to support housing markets outside the capital region.
It sent proposals on lending, taxes and housing policy to the relevant government ministries.
Daegu wants regional home buyers to face fewer borrowing constraints, including by exempting them from a mortgage rule that tests whether they could repay loans at higher interest rates, or keeping the rule at its current level.
It also wants tax benefits for completed homes that remain unsold to last longer.
The city proposed raising the price at which the Korea Land and Housing Corporation buys these homes, from as much as 90% to as much as 100% of their appraised value.
Daegu says it plans to make further requests, including more favorable loan rates for buyers of unsold homes and tax benefits for second homes in city centers.
The government’s response is not stated.
Daegu has asked the South Korean government to adopt housing measures tailored to regional markets.
The city recently sent proposals on finance, taxation and housing policy to the responsible ministries.
Its proposals include easing stress-rate debt rules for regional home buyers and extending tax relief for unsold homes.
Daegu also wants the Korea Land and Housing Corporation to pay more when buying completed but unsold regional homes.
The city plans to submit further proposals, including expanded tax benefits and support for regional construction projects.
- Who
- Daegu Metropolitan City.
- What
- It has urged the South Korean government to adopt housing measures tailored to regional markets.
- When
- The city announced its proposals on October 11, 2026; it said it had recently sent them to government ministries.
- Where
- Daegu, South Korea, with proposals concerning regional housing markets.
- Why
- Daegu said regional housing-market instability and a construction downturn could weaken economic activity across the country.
This story does not have two clearly opposing sides.
Daegu sent financial, tax and housing-policy proposals to the responsible government ministries.
Daegu announced its proposals to the public.
The city said it plans to submit additional proposals on housing finance, project guarantees, tax benefits and reconstruction.
- Stress-rate DSR
- Daegu proposed not applying it in regional markets or keeping it at least at its current level.
- Tax relief
- The city asked to extend the tax special treatment for completed but unsold regional homes beyond the government's proposed one-year extension.
- LH purchase price
- Daegu proposed raising the maximum purchase price for completed but unsold regional homes from 90% to 100% of appraised value.
- Additional proposals
- The city plans to seek expanded policy-loan rate benefits for buyers of unsold homes and priority allocation of project-finance guarantees for regional sites.
What people are saying
As instability in regional housing markets and the downturn in the construction industry could undermine vitality across the national economy, we ask that the proposals be actively reflected in government policy.
Sources
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