Apartment buildings in central Seoul as seen from Namsan. (Yonhap)
SEOUL, Feb. 10 (Korea Bizwire) — South Korea’s ruling Democratic Party is moving to tighten oversight of the country’s volatile property market, unveiling legislation on Tuesday that would create a powerful new state regulator to police real estate transactions and crack down on unfair trading.
The bill, introduced by Representative Kim Hyun-jung, would establish a real estate supervisory authority under the Prime Minister’s Office, with a mandate to monitor market activity and investigate suspected irregularities.
In a measure that has already drawn sharp political debate, the agency would be allowed to access individuals’ credit and financial transaction records — including loan information — without a court warrant, though such access would require approval from an internal supervisory council.
Kim said the proposal is intended to improve transparency and “realize the constitutional value of protecting the public’s right to housing,” as concerns over speculation and market manipulation continue to dog the housing sector.
The National Assembly (Image courtesy of Yonhap)
The lawmaker is also preparing a companion bill that would grant special judicial police powers to officials at the new body, enabling them to conduct investigations directly rather than relying on existing enforcement agencies.
At a party floor meeting, Democratic Party floor leader Han Byung-do framed the proposal as a decisive response to speculative practices he described as corrosive to the broader economy. “We will carry out constant monitoring and precise crackdowns,” he said, likening the envisioned body to a Financial Supervisory Service for real estate. “Illegal speculators will have no place in this market.”
The opposition People Power Party pushed back forcefully, warning that the regulator would wield excessive authority and erode privacy rights. Yoo Sang-bum, the party’s deputy floor leader, said the plan risked creating a “Big Brother” for real estate, combining supervisory and investigative powers in ways that could undermine checks and balances.
“This is a dangerous design,” Yoo said, arguing that housing market problems should be addressed through supply expansion, tax policy and financial reforms — not by creating a new investigative body with sweeping powers.
The proposal reflects the broader push by President Lee Jae Myung’s administration to rein in property speculation, particularly in the Seoul metropolitan area, where prices have surged despite repeated policy interventions. The government is already preparing to end tax exemptions for owners of multiple homes as part of its effort to cool the market.
Whether the proposed watchdog becomes a cornerstone of real estate reform or a flashpoint in Korea’s perennial housing debate is likely to depend on how lawmakers balance demands for tougher enforcement with concerns over civil liberties and institutional overreach.
M. H. Lee (mhlee@koreabizwire.com)
