The government and ruling coalition Wednesday decided to exempt owners of newly-built houses from capital gains tax on the sale of the houses until the end of 2002 to boost the construction industry.

The participants, however, agreed not to offer tax benefits to houses valued over $462,600 dollars.

Currently, the tax exemption is offered only to newly-built houses outside of Seoul, Incheon and Kyonggi Province.

During the meeting attended by Deputy Prime Minister Jin Nyum and representatives of the MDP's ruling coalition United Liberal Democrats and Democratic People's Party, the participants also concurred that the government will reduce by half the acquisition and registration taxes on newly-built houses with floor space less than 25.7 pyong (one pyong equals 3.3 square meters) until the end of 2002.