South Korea continues to tighten restrictions on real estate purchases for foreigners.

VTV.vn - South Korea is tightening regulations on real estate purchases for foreigners, requiring proof of funds and financial plans to increase transparency and combat speculation.

In an effort to tighten control over real estate transactions involving foreigners, starting in early 2026, foreigners purchasing homes in areas where land transactions are permitted in South Korea will be required to submit not only a financial plan but also documents proving the source of their funds.

The South Korean Ministry of Land, Infrastructure and Transport announced on December 9th that the South Korean government will require foreign nationals purchasing homes in designated areas requiring real estate permits to submit detailed documentation outlining their intended plans for the purchase.

This move, part of an amended implementing decree by the South Korean government effective February 10, comes amid concerns that some foreign buyers have purchased expensive homes with untraceable foreign capital, without being subject to the same strict lending regulations as local residents.

Starting in August 2025, the South Korean government designated most of Seoul, large areas of Gyeonggi Province, and seven districts in the western port city of Incheon as areas requiring land transaction permits for foreigners.

Apartment buildings in northern Seoul, South Korea. (Source: AFP/VNA)

Foreigners wishing to purchase real estate in areas requiring permits will have to submit a financial plan and proof of the source of funds, such as foreign loans, foreign bank deposits, and the names of foreign financial institutions involved in the home purchase transaction.

The South Korean government has also strengthened regulations to prevent speculation. Accordingly, foreigners who buy houses in designated licensed areas are required to maintain residency for two years.

The ministry said the new measure would make it easier to identify illegal activities, such as tax evasion or unauthorized leasing, and help improve fairness in the government's taxation and oversight of real estate.

In the three months since the designation of areas where foreigners are permitted to purchase housing, the total number of housing transactions by foreigners in the Seoul metropolitan area reached 1,080, a 40% decrease compared to the same period in 2024. By region, Gyeonggi Province accounted for 66.1% of the total, followed by Incheon with 17.3% and Seoul with only 16.6%, with Seoul recording the largest decrease.

By nationality, Chinese buyers accounted for the largest group of real estate buyers at 72%, followed by Americans at 14% and Canadians at 3%.

Source: https://vtv.vn/han-quoc-tiep-tiep-siet-chat-viec-mua-bat-dong-san-voi-nguoi-nuoc-ngoai-10025121016175379.htm