The photo shows residential houses and apartment complexes in Seoul, as seen from Namsan in Jung-gu, Seoul. (Image courtesy of Yonhap)
SEOUL, June 16 (Korea Bizwire) — The Seoul Metropolitan Government announced new measures on Sunday to enhance oversight of real estate transactions involving foreign nationals, aiming to address rising concerns over transparency, market disruption, and perceived unequal treatment of domestic buyers.
As foreign ownership of property in South Korea increases, Seoul officials plan to scrutinize sources of financing for real estate purchases more rigorously and investigate potentially abnormal transactions. The move comes amid criticism that the absence of restrictions on foreign buyers, unlike those applied to local citizens, creates a regulatory imbalance.
“There is a growing need to verify whether foreign property purchases are being funded through illicit overseas remittances or disguised gifts,” the city said, highlighting concerns that foreign investors may bypass domestic lending regulations by securing loans from overseas banks.
Under the new policy, Seoul will conduct detailed reviews of financing documents submitted during transaction reports by foreign buyers. The city will also investigate suspicious activity flagged in monthly data received from the Ministry of Land, Infrastructure and Transport (MOLIT), including transactions made under foreign names.
A panoramic view of downtown Seoul seen from Inwangsan Mountain. (Yonhap)
In addition, Seoul plans to work with district offices to carry out on-site inspections in regulated land transaction zones to confirm actual residence status for foreign purchasers. Follow-up investigations will include checks on financial documentation, residency permits, and compliance with land use obligations.
If foreign owners fail to meet usage requirements, authorities will issue correction orders, and non-compliance may result in penalty charges of up to 10% of the property’s acquisition value under current real estate transaction laws.
Seoul also intends to establish a real-time monitoring system by collecting and analyzing monthly foreign transaction data in cooperation with local governments.
Earlier this month, the city formally requested MOLIT to amend national real estate laws to introduce tighter oversight on foreign ownership. A related bill mandating reciprocal treatment for foreign buyers is currently pending in the National Assembly.
Seoul Mayor Oh Se-hoon stated during a June 11 policy session at the city council, “If foreign acquisitions are found to be influencing a sharp rise in housing prices, necessary measures must be considered. We are in early discussions with MOLIT to determine if such regulatory changes are warranted.”
Jo Nam-jun, head of Seoul’s Urban Space Bureau, added, “We are committed to stabilizing the real estate market through effective management backed by thorough investigations and accurate data.”
Ashley Song (ashley@koreabizwire.com)
