South Korea’s finalized 2026 Tax Reform Plan, submitted to the National Assembly, would make actual residency rather than ownership duration the central test for long-term capital gains deductions on single-home sales. From 2028, the holding-period component would shrink as residency-based deductions expand; from 2029, the holding-period deduction would disappear and an annual 8% deduction would apply only to years of actual residency, potentially sharply increasing liabilities for non-resident single-home owners who rented out properties. The Cabinet-approved revision restored the Comprehensive Real Estate Tax basic deduction for non-resident single-home owners to 1.2 billion won from the proposed 900 million won and kept the 150% tax-burden ceiling. The presidential office said speculation about further easing was a distortion, although a ruling-party proposal to apply a uniform 1.4 billion won deduction remained under discussion. Preferential capital gains and long-term holding benefits for registered rental operators in designated adjustment zones remain on a phaseout track, with further debate expected over unavoidable non-residency, rental-property transition rules and tax equity.