Friday, October 3, 2025

Foreigners Cannot Freely Buy Apartments in Seoul... Designated as Land Transaction Permit Zone from the 26th

Input
2025-08-21 16:30:00
Updated
2025-08-21 16:30:00
Entire Seoul, 30 locations in Gyeonggi and Incheon targeted
Local government approval and mandatory residence
Strengthened reporting of foreign capital sources
View of apartment complex seen from Namsan, Seoul
View of apartment complex seen from Namsan, Seoul

[Financial News] In the future, foreigners who do not reside will not be able to purchase houses in Seoul and the metropolitan area. To block speculative transactions by foreigners, the entire Seoul and major areas in the metropolitan area will be designated as land transaction permit zones, and submission of funding plans will also be made mandatory. ▶Related article on page 2
The Ministry of Land, Infrastructure and Transport announced on the 21st that after deliberation by the Central Urban Planning Committee, the entire Seoul, 7 districts including Jung-gu and Yeonsu-gu in Incheon, and 23 major cities and counties in Gyeonggi-do such as Seongnam, Gwacheon, Yongin, and Suwon have been designated as foreign land transaction permit zones. This measure will take effect from the 26th until August 25th next year for one year. Lee Sang-gyeong, the First Vice Minister of the Ministry of Land, said, "This measure is to fundamentally block foreign speculation through the influx of foreign capital and to support the stability of national housing."
Accordingly, foreigners must obtain permission from the relevant city, county, or district office to purchase a house within the land transaction permit zone, and even if permission is granted, they are required to move in within 4 months and live in the house for 2 years after acquisition. Failure to comply will result in an enforcement order and a recurring enforcement fine of up to 10% of the acquisition cost.
The government plans to strengthen the system by mandating the submission of funding plans and reporting the source of foreign capital and visa types when foreigners conduct housing transactions. To this end, it is also promoting an amendment to the 'Real Estate Transaction Reporting Act Enforcement Decree' to expand the submission target of funding plans, which was limited to speculative overheated districts, to foreign land transaction permit zones.
The Ministry of Land plans to notify the Financial Intelligence Unit (FIU) in cases of suspected illegal foreign capital inflow or money laundering in foreign housing transactions, so that it can be forwarded to overseas FIUs. Additionally, if it is determined that tax collection on capital gains is necessary, it will notify foreign tax authorities through the National Tax Service. 
en1302@fnnews.com Jang In-seo Reporter