Increase in real estate speculation by foreigners in South Korea

This photo taken last Thursday shows an apartment complex in southern Seoul. (union)

South Korea will continue to investigate questionable real estate transactions by foreigners after a recent investigation found an increase in illegal activities related to home purchases by foreigners, the land ministry said on Friday.

According to the Ministry of Land, Infrastructure, Transport and Tourism, there were 560,000 suspicious home purchases nationwide by September this year, but the percentage of suspicious home purchases by foreigners increased to 1.21%, or 6,772 cases.

This percentage is already above 0.81% for the entire year.

Unlike locals, who are subject to strict lending rules and other restrictions, foreigners have more leeway to finance home purchases in South Korea, sparking the “reverse discrimination” controversy.

Reportedly, foreigners often take out full loans to buy a home or multiple homes, and can borrow money from banks in their home countries to buy homes here.

The government conducted a multi-agency investigation into 1,145 suspected cases involving foreigners between June and September, 567 of which involved gifts of convenience, nominal trust, and price hikes intended to encourage speculation. found to be involved in the illegal activities of, the statement said.

Investigations show that foreigners brought in more than $10,000 in cash without reporting to South Korean authorities, purchased multiple homes without local government approval, and provided home rental services.

In South Korea, when a foreigner purchases a house and needs to pay housing-related taxes, they can obtain a mortgage from a local financial institution based on local lending regulations.

If these illegalities are confirmed, the parties involved will be subject to tax investigations or fines. (union)