Korean MP Proposes Tax Exemption on Jeonse Loan Interest

February 15, 2026 Priya Shah – Business Editor Business

National Assembly Speaker Song Eun-seok of the People Power Party introduced a bill on Friday to exempt 전세 (jeonse) loans from the acquisition tax, a move intended to alleviate the financial burden on renters. The proposed amendment to the Acquisition Tax Act aims to eliminate a tax currently levied when securing a 전세 loan, a common form of rental agreement in South Korea.

The acquisition tax, typically paid through revenue stamps or cash, applies to contracts and certifications related to property rights. Currently, both the tenant and the lending institution, usually a bank, share the cost of this tax when a 전세 loan is taken out, even when renewing an existing contract. According to data from the Financial Supervisory Service, the total acquisition tax levied on 전세 loans over the past five years reached 288.04 billion won, with tenants bearing half of that amount – 144.02 billion won.

Specifically, no tax is levied on loans of 50 million won or less. For loans exceeding 50 million won but not surpassing 100 million won, the tax is 70,000 won (with the tenant paying 35,000 won). Loans between 100 million and 1 billion won are subject to a 150,000 won tax (tenant share: 75,000 won). The amounts collected were 63.56 billion won in 2021, 57.45 billion won in 2022, 57.97 billion won in 2023, 59.01 billion won in 2024, and 50.05 billion won in 2025.

Speaker Song argued that the acquisition tax on 전세 loans represents an additional housing cost for renters, particularly burdensome given rising 전세 prices and increasing loan amounts. “전세 loan acquisition tax is a type of housing cost that tenants are repeatedly burdened with each time they enter into a contract,” Song stated. “In a situation where 전세 prices are soaring and loan amounts and interest burdens are also increasing, we need to alleviate the financial burden on tenants by exempting the acquisition tax.”

The bill’s introduction comes as the government faces ongoing pressure to address housing affordability concerns. While the proposed legislation focuses specifically on 전세 loans, it reflects a broader debate about the financial challenges faced by renters in South Korea. No timeline for a vote on the bill has been announced.