Korea Tightens Oversight on Foreign Real Estate Transactions

South Korea's Ministry of Land, Infrastructure and Transport has launched an expanded review of real estate transactions involving foreign capital. The investigation aims to curb market manipulation and enforce fair rules across all home buyers.

The ministry is scrutinizing 840 residential and commercial property transactions conducted by foreign nationals between June 2025 and July 2026. Inspectors are verifying whether purchase capital originated from foreign stock sales, cryptocurrency liquidations or overseas loans, while also cross-referencing visa categories to identify unauthorized rental businesses operated by short-term visitors.

The crackdown responds directly to public concerns over fairness in the housing market. Domestic residents face stringent mortgage caps, debt-to-income ratios and strict tax compliance checks designed to cool down overinflated urban housing prices, but offshore buyers have occasionally utilized unregulated foreign capital transfers to purchase high-value properties or build multiple-home portfolios without facing equivalent regulatory hurdles.

The ministry is partnering with local governments to verify whether purchasers in designated land transaction permit zones are adhering to mandatory owner-occupancy rules. If a buyer fails to reside in the property as declared, local district offices can issue compliance orders, levy financial penalties or revoke purchase permits altogether.