National Assembly Steps Up to Restrict Foreigners from Buying Real Estate

A person takes a photo of apartment buildings in downtown Seoul from a skyscraper on June 13, 2021. (Yonhap)

SEOUL, July 28 (Korea Bizwire) — South Korean politicians are stepping up to address concerns over Chinese nationals purchasing real estate in the country.

China, under a communist regime, strictly forbids South Koreans from purchasing real estate in their territory.

On the other hand, South Korea has barely any restrictions on real estate purchases by Chinese nationals.

Rep. Thae Yong-ho of the main opposition People Power Party and 18 other party members proposed a bill on Tuesday that applies the principle of mutuality to foreigners purchasing real estate in South Korea.

The bill stipulates that any foreigner purchasing South Korean real estate will be bound by the same restrictions that are imposed on South Korean buyers in their country.

Also, it requires foreigners to acquire prior authorization before engaging in real estate transactions in speculation management and monitoring districts.

The National Assembly Research Archive reported that foreigners purchased 7,903 homes in the five years since 2016. More than half of them were bought by Chinese nationals.

Legislators expect that the principle of mutuality will be able to effectively correct any unjust practices and prevent foreigners from disturbing the market through reckless buying.

H. M. Kang (hmkang@koreabizwire.com)