[Exclusive] One in Three Seoul Home Transactions Asked to Explain Funding Sources... Most in Nowon and Eunpyeong [Stricter Monitoring of the Real Estate Market]

This year, one in three home transactions in Seoul worth less than 1.2 billion won has been asked to explain its funding sources. As the housing market is being reshaped around end users, the government appears to be extending its "microscope-level" scrutiny to the mid- and lower-priced segment as well.
■ 35.02% of mid- and lower-priced transactions subject to explanation requests
According to data on the number of notices sent for funding plan reviews, obtained by this paper on the 19th through the office of Rep. Kim Eun-hye of the People Power Party (PPP), 7,694 Seoul home transactions under 1.2 billion won were flagged for funding-source explanations in the first quarter of this year. According to the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport, a total of 21,968 home transactions under 1.2 billion won took place in Seoul during the same period. The request rate for explanations reached 35.02% of all transactions.
If the scope is expanded to include transactions since July last year, after the government took office on June 4, 2025, a total of 17,183 cases had been asked to explain their funding sources through March this year. During the same period, there were 60,733 transactions in total, meaning 28.29%, or nearly three in 10, were subject to review.
By district, Songpa District received the most explanation requests in the second half of last year with 988 cases, followed by Gangseo District with 576, Seongbuk District with 564, Dongdaemun District with 531, and Gangnam District with 522. This year, however, the ranking shifted to Nowon District with 615 cases, Eunpyeong District with 507, Gangseo District with 488, Seongbuk District with 469, and Guro District with 442. The change reflects the altered market mood after tougher regulations on multi-homeowners took effect early this year, while also showing that requests are concentrated in areas with a large number of homes priced below 1.2 billion won.
The entity that requests buyers, sellers, and brokers to submit documents explaining funding sources differs depending on whether the transaction value is below or above 1.2 billion won. For transactions under 1.2 billion won, KREB notifies the district office, which then sends the relevant registered mail. For transactions of 1.2 billion won or more, KREB sends registered mail directly to the buyer, seller, and broker.
If explanation requests for mid- to high-priced transactions above 1.2 billion won are added, the total number could double. Since the second half of last year, the government has been conducting a broad investigation into the source of funds and possible violations of loan rules in high-priced home transactions.
■ Monthly requests top 1,000 for the first time in 43 months
Funding-source explanation requests began rising sharply in May last year, during the presidential election period. The number of cases stood at 515 in January 2025, 539 in February, 608 in March, and 829 in April, before jumping to 1,312 in May, up 58.26% from the previous month. Monthly requests topped 1,000 for the first time in 43 months, since October 2021, when there were 1,026 cases.
The high level continued after the government launched on June 4 last year. The figures remained in the 1,000s, with 1,477 in June, 1,383 in July, 1,650 in August, 1,167 in September, 1,091 in October, and 1,662 in November. In December, the number surged to 2,536, the highest on record. This year, the first quarter also posted unusually high numbers, with 2,497 cases in January, 2,638 in February, and 2,559 in March.
Some have claimed that buying a home in a land transaction permit zone automatically triggers a 100% explanation request, but that has been confirmed as false. Still, the sharp increase in requests appears to have led many buyers to feel as if they were under a full inspection. A buyer identified as A, who purchased a home in the second half of last year, said, "Three or four months after buying the house, I received a registered letter asking for documents early this year." He added, "I spent a long time wondering and worrying about why I had been singled out, and then I heard that an acquaintance had also received the same notice."
The criteria for explanation requests are, in principle, not disclosed. A KREB official said, "We do not disclose the standards because revealing which cases are subject to explanation could lead to misuse."
Rep. Kim Eun-hye of the PPP said, "The government is going too far in interfering with the market and harassing the public, not only by expanding land transaction permit zones but also by sharply increasing requests to explain funding plans." She added, "At this point, it is no longer helping home sales, but hindering them."
ljb@fnnews.com Lee Jong-bae, Jeon Min-kyung Reporter