Korea tightens oversight on foreign capital in domestic real estate market

In an effort to combat market manipulation and ensure equitable access to the housing market, Korean land and transport officials have launched a comprehensive review of real estate transactions involving foreign capital. The Ministry of Land, Infrastructure and Transport announced on Wednesday that they are currently examining 840 residential and commercial property deals conducted by non-residents between June 2025 and July 2026.

This nationwide investigation, slated to conclude in December, builds upon regulatory efforts initiated in 2022 to prevent loopholes that enable unverified foreign funds to circumvent domestic lending restrictions and tax regulations.

By expanding the scope of review under a revised decree of the Real Estate Transactions Act, authorities are now investigating a wider array of transaction details. Inspectors are verifying the origin of purchase funds, scrutinizing whether they stem from foreign stock sales, cryptocurrency liquidations, or overseas loans. Additionally, they are cross-referencing visa categories to identify unauthorized rental businesses operated by short-term visitors.

These intensified measures directly respond to concerns raised by the public regarding potential market distortions and unfair advantages granted to foreign investors. The crackdown aims to restore fairness and transparency in the domestic real estate market, ensuring that all home buyers are treated equitably and in accordance with established rules and regulations.