Designation as a regulated area brings six things at once
Designation is not one lending restriction. Lending, acquisition tax, capital gains tax, the one-home exemption conditions, resale restrictions and the subscription re-award bar all apply together. Each looks small on its own; overlaid, they move the figure considerably.
Conditions used in the video
- Basis
- adjustment target area
- Mortgage LTV
- 40% if you own no home / 0% if you do
- Acquisition tax surcharge
- 8% on a second home, 12% on a third
- Capital gains surcharge
- in force (suspension ended 2026-05-09)
- Resale restriction
- 3 years in the capital region / 1 year elsewhere
- Subscription re-award bar
- 7 years (10 in a speculation overheating district)
Results
- Items applying at once
- six
- Mortgage cap (up to ₩1.5B)
- ₩600M
- Mortgage cap (₩1.5B to ₩2.5B)
- ₩400M
- Mortgage cap (above ₩2.5B)
- ₩200M
- Capital gains surcharge back in force
- from 2026-05-10
At a glance
In force from 2025-10-16, on capital region and regulated area figures. A cap sits on the amount itself, separately from the LTV ratio.
- Up to ₩1.5B₩600M
- ₩1.5B to ₩2.5B₩400M
- Above ₩2.5B₩200M
Why it works this way
News that an area has been designated usually brings lending to mind first. That is right, but only half right. A single designation drags several schemes along with it.
Let us take what applies, item by item. The following is on adjustment target area figures.
All six apply at the same time.
- ① MortgageLTV 40% with no home / 0% with one
- ② Acquisition tax8% on a second home, 12% on a third
- ③ Capital gains taxsurcharge + long-term deduction disapplied
- ④ One-home exemption2 years' residence added
- ⑤ Resale restriction3 years in the capital region
- ⑥ Subscription re-award7 years
Beyond these, a cap on jeonse loans, a bar on purchase for holders of large credit loans, restrictions on membership in redevelopment projects, and the duty to file a funding plan all come with it.
First, lending. It is not only a matter of the LTV ratio. Separately from the ratio, a cap sits on the amount itself: ₩600M for a home up to ₩1.5B, ₩400M between ₩1.5B and ₩2.5B, and ₩200M above ₩2.5B. The dearer the home, the smaller the absolute amount you can borrow.
The stress rate comes on top of that. The rate actually used in assessment is higher than the contract rate. The loan limit calculator takes both into account together.
Second, acquisition tax. A multiple-home owner buying in a regulated area pays the surcharge, 8% on a second home and 12% on a third or more. Set against ordinary rates of 1% to 3%, the multiple is large.
Third, capital gains tax. This is where the misunderstanding most often arises.
The temporary suspension that ran for four years has ended.
- 2022-05 to 2026-05temporarily suspended
- 2026-05-09suspension ends
- Sales from 2026-05-10surcharge applies
Material from October 2025 records it as 'temporarily suspended'. Judge from that alone and you will be wrong. As things stand, +20 percentage points on a second home and +30 on a third or more apply, and the long-term holding deduction is disapplied.
Fourth, the conditions for the one-home exemption. In an ordinary area two years of holding is enough, but a home in an adjustment target area at the time of acquisition adds two years of residence. What matters here is that the test is at the time of acquisition. Designation after you bought brings no residence condition.
Fifth and sixth are constraints on time. Resale is restricted for three years in the capital region and one year elsewhere, and subscription re-award is barred for seven years. In a speculation overheating district the re-award bar is ten years.
Let us set out the difference between an adjustment target area and a speculation overheating district. They are separate schemes and what they carry differs.
Some things overlap; some sit on one side only.
- Bothlending restrictions, resale restrictions
- Adjustment target area onlyacquisition and capital gains surcharges, tighter exemption
- Speculation overheating district onlybar on transferring membership, 10-year re-award bar
The tax surcharges attach to an adjustment target area. Somewhere designated only as a speculation overheating district does not carry the tax items.
Finally, why these six belong on one screen. Taken apart, each looks manageable. But because they attach in sequence across buying, holding and selling, what actually moves is the total.
The acquisition tax is surcharged when you buy, the smaller loan puts more of your own money in, the point at which you can sell is restricted while you hold, and on sale the capital gains surcharge applies while the long-term deduction disappears. Calculate at each stage and the figure becomes visible.
So this episode does not give one answer. It is the starting point for working out which of the six actually bite in your situation. Begin by establishing whether your area is an adjustment target area, a speculation overheating district, or both.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
규제지역 지정에 따른 규제 효과 (press release of 2025-10-15, reference 2)
In force 2025-10-16
An adjustment target area carries mortgage LTV of 40% for those owning no home and 0% for those who do; the acquisition tax surcharge for multiple-home owners (8% on a second home, 12% on a third); the capital gains surcharge for multiple-home owners with the long-term holding deduction disapplied; tighter conditions for the one-home exemption; resale restrictions of 3 years in the capital region and 1 year elsewhere; and a 7-year subscription re-award bar. A speculation overheating district adds a 10-year re-award bar, restrictions on transferring membership in reconstruction and redevelopment projects, and the filing of supporting evidence with the funding plan.
What this means
One designation places constraints across buying, holding and selling. The tax surcharges attach to an adjustment target area, so which designation applies to your area is the first thing to establish.
주택담보대출 금액 상한 (cap on the mortgage amount, measures of 15 October)
In force 2025-10-16
For a home in the capital region or a regulated area, a cap sits on the mortgage amount itself: ₩600M at a market value up to ₩1.5B, ₩400M above ₩1.5B and up to ₩2.5B, and ₩200M above ₩2.5B.
What this means
Even using the LTV ratio in full, you cannot exceed these amounts. The dearer the home, the smaller the absolute amount you can borrow, and the more of your own money it takes.
다주택자 양도세 중과 재적용 (the capital gains surcharge back in force)
In force 2026-05-10
The temporary suspension that ran for four years from May 2022 ended on 2026-05-09. A multiple-home owner selling a home in an adjustment target area on or after 2026-05-10 adds +20 percentage points on a second home and +30 on a third or more to the basic rate, and the long-term holding deduction is disapplied entirely.
What this means
Material from October 2025 records it as 'suspended', which makes it easy to misread. It applies in fact as things stand.
소득세법 시행령 제154조제1항 (tighter exemption conditions)
In force in force
A home in an adjustment target area at the time of acquisition needs two years of residence within the holding period, on top of two years of holding, for the one-home exemption to apply.
What this means
The test is at the time of acquisition. Designation after you bought brings no residence condition; designation when you bought means two years of residence even if it is later lifted.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Mortgage Limit Calculator
Frequently asked
Which is stricter, an adjustment target area or a speculation overheating district?
They do not compare directly. The tax surcharges attach to an adjustment target area, while the bar on transferring membership and the 10-year re-award bar attach to a speculation overheating district. Some areas carry both designations.
Isn't the capital gains surcharge still suspended?
No. The temporary suspension running from May 2022 ended on 9 May 2026 and the surcharge applies as things stand. Material from October 2025 records it as suspended, which is the easy place to get confused.
What if the area was designated after I bought?
It differs by scheme. The residence condition for the one-home exemption is tested at the time of acquisition, so designation afterwards does not bring it. Lending restrictions and rules applying at the point of sale, by contrast, are judged on the designation at that time.
Are those six everything?
They are the six that go straight to money, picked out and set together. Beyond them, a cap on jeonse loans, a bar on purchase for those holding credit loans above ₩100M, restrictions on membership in redevelopment projects, and the duty to file a funding plan all apply as well.
Where do I check whether my area is designated?
In the Ministry of Land, Infrastructure and Transport press releases and public notices. Designations are made and lifted from time to time, so check as at the date of the contract.
I own no home. How much can I borrow in a regulated area?
LTV of 40% applies, with the cap by market value of the home on top of it. And DSR assessment uses the actual rate plus the stress rate. The loan limit calculator takes all three into account together.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.