2025-12-30-Article 168-3-Standards for Designation of Designated Areas, etc.

In the case of "designated areas" as referred to in Article 104-2 (1) of the Act, it means areas designated by the Minister of Land, Infrastructure and Transport, considering the nationwide real estate price trends and the characteristics of the relevant area, if it is judged that the rise in real estate prices in such area is likely to continue or to spread to other areas, and a designation request is made (including cases where the head of a relevant central administrative agency requests through the Minister of Land, Infrastructure and Transport), after deliberation by the Real Estate Price Stabilization Deliberation Committee under Article 168-4, by the Minister of Economy and Finance. 1. Areas where the housing sale price increase rate for the month preceding the designation date (hereinafter referred to as "preceding month" in this paragraph) is higher than 130/100 of the nationwide consumer price increase rate, and which fall under any of the following sub-paragraphs: a. Areas where the monthly average housing sale price increase rate for the two months preceding the preceding month is higher than 130/100 of the nationwide housing sale price increase rate. b. Areas where the annual average housing sale price increase rate for the one year preceding the preceding month is higher than the annual average nationwide housing sale price increase rate for the three years preceding the preceding month. 2. Areas where the land price increase rate for the preceding month is higher than 130/100 of the nationwide consumer price increase rate, and which fall under any of the following sub-paragraphs: a. Areas where the monthly average land price increase rate for the two months preceding the preceding month is higher than 130/100 of the nationwide land price increase rate. b. Areas where the annual average land price increase rate for the one year preceding the preceding month is higher than the annual average nationwide land price increase rate for the three years preceding the preceding month. 3. Areas where development projects under Article 2 (2) of the Act on the Imposition and Collection of Development Gains (including development projects for which development charges are not imposed) and housing reconstruction projects (hereinafter referred to as "development projects, etc.") are in progress (including cases where the head of a central administrative agency or the head of a local government has announced such development projects, etc.), and which meet all of the following requirements: a. The housing sale price increase rate for the preceding month shall be higher than 130/100 of the nationwide consumer price increase rate. b. The housing sale price increase rate for the preceding month shall be higher than 130/100 of the nationwide housing sale price increase rate. 4. Areas where a residential land development district under the 「Residential Land Development Promotion Act」, an administrative city construction project area and its surrounding areas under the 「Special Act on the Construction of an Administrative City for the Follow-up Measures to the New Administrative Capital」, or other areas where large-scale development projects designated by the Minister of Economy and Finance are scheduled to be promoted (hereinafter referred to as "scheduled districts, etc." in this subparagraph), and which fall under any of the following sub-paragraphs. In this case, if a candidate site for a scheduled district, etc. is announced by an administrative agency, that candidate site shall be deemed a scheduled district, etc.: a. Areas where the housing sale price increase rate for the preceding month is higher than the nationwide consumer price increase rate. b. Areas where the land price increase rate for the preceding month is higher than the nationwide consumer price increase rate.

"Real estate prescribed by Presidential Decree" as referred to in Article 104-2 (2) of the Act means real estate that falls under any of the following subparagraphs. 1. Deleted <2018.2.13> 2. In the case of designated areas under paragraph (1) 2: Real estate other than housing (including land incidental thereto). 3. In the case of designated areas under paragraph (1) 4: Real estate other than housing (including land incidental thereto). 4. Deleted <2018.2.13>

Upon receiving the notification under paragraph (4), the Commissioner of the National Tax Service shall take measures to make the contents thereof available for public inspection.

If, after designating a designated area pursuant to paragraph (1), the real estate prices in the relevant area stabilize and the grounds for designation are deemed to have been resolved, and if a de-designation request is made by the Minister of Land, Infrastructure and Transport (including cases where the head of a relevant central administrative agency requests through the Minister of Land, Infrastructure and Transport), the Minister of Economy and Finance shall de-designate the designated area after deliberation by the Real Estate Price Stabilization Deliberation Committee.

Designated areas under paragraph (1) shall be designated on the unit of administrative districts of special cities, metropolitan cities, special self-governing cities, provinces, special self-governing provinces, or cities (including administrative cities established under Article 10 (2) of the 「Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of International Free City」), counties, and districts. However, for areas under paragraph (1) 3 and 4, and for designated areas under Article 10 of the 「Act on Real Estate Transaction Reporting, etc.」, only the relevant areas may be designated as designated areas.

Statistics on the nationwide consumer price increase rate, housing sale price increase rate, nationwide housing sale price increase rate, land price increase rate, and nationwide land price increase rate under paragraph (1) shall be based on statistics approved for compilation by the head of the National Data Processing Center under Article 18 of the 「Statistics Act」. In this case, if there are statistics on the sale price increase rate only for apartments under Annex Table 1 of the 「Enforcement Decree of the Building Act」, these shall be regarded as the housing sale price increase rate statistics for the relevant area, and if there are no statistics on the real estate price increase rate for the preceding month, the statistics for the month before the preceding month shall apply.