The government has increased the number of foreign real estate suspicious transactions under review from 605 last year to 840 this year, a 38.8% rise, while enhancing verification of funding sources. This includes scrutiny of loans from overseas financial institutions and proceeds from the sale of stocks and cryptocurrencies. Additionally, the government plans to verify actual residency in land transaction permit zones.
On September 23, the Ministry of Land, Infrastructure and Transport announced that it is conducting planned investigations into 840 suspected illegal foreign transactions reported from June of last year to July of this year. The investigation began in August and is set to continue until December, with results expected by the end of the year.
According to the revised enforcement decree of the Real Estate Transaction Reporting Act, which took effect in February, the ministry is utilizing new data, including proceeds from the sale of stocks, bonds, and cryptocurrencies, as well as loan amounts from overseas financial institutions and residency qualifications, to identify suspicious transactions. The number of cases under review has increased by 235 from last year’s 605.
The ministry plans to investigate the sources of funds used for real estate acquisitions. This includes verifying not only domestic funds but also the origins of funds sourced from abroad to check for illegal inflows. The ministry will also look into cases where individuals with residency qualifications that do not allow employment or business activities are engaged in rental activities.
Regulations on foreign housing transactions have been tightened since last year. The government designated all of Seoul and seven districts in Incheon, along with 23 cities and counties in Gyeonggi Province, as foreign land transaction permit zones in August 2025. Following this designation, foreign housing transactions in Seoul decreased by 51% compared to before the designation, while the overall number in the metropolitan area dropped from 2,279 to 1,481, a 35% decline. Last month, the government extended the designation period for these permit zones by another year.
The ministry will also check whether foreign buyers in permit zones are fulfilling their residency obligations. It plans to collaborate with local governments, including Seoul, to verify if foreign buyers are actually residing in the properties they have purchased. If it is confirmed that they are not complying with residency requirements, local authorities may issue compliance orders. Failure to comply could result in fines or permit cancellations.
Currently, the trend of foreign ownership of domestic housing is on the rise. According to statistics released by the ministry in May, as of the end of 2025, foreign ownership of domestic housing reached 108,231 units, accounting for 0.55% of all housing. This marks an increase of 8,015 units compared to 100,216 units at the end of 2024.
Shin Yoon-geun, the director of land policy at the Ministry of Land, stated, "We will thoroughly investigate and respond strictly to illegal transactions to ensure that foreign housing speculation does not undermine the establishment of a transparent real estate transaction order in our country."
* This article has been translated by AI.
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