foreigners buying homes in Korea / Seoul housing regulation / residency requirement

Foreigners Banned from Buying Homes in Seoul and Capital Region Without Residency – Effective August 26

💡 Key Message: Starting August 26, 2025, foreigners will not be able to purchase homes in Seoul, Incheon, and most of Gyeonggi Province unless they intend to live in them.

To stabilize the housing market and curb speculation, the Korean government has designated Seoul (all districts), 7 districts in Incheon, and 23 cities/counties in Gyeonggi Province as land transaction permit zones for foreigners. This designation will remain in effect from August 26, 2025 to August 25, 2026 and may be extended depending on market conditions.

📌 Key Regulations

  • Foreigners must obtain prior approval before purchasing property in designated areas.
  • Within 4 months of purchase approval, buyers must move in and maintain 2 years of residency.
  • Violations will result in enforcement fines up to 10% of the property value.
  • Foreign buyers must report funding sources and visa type.

The restrictions apply to all residential properties, including detached houses, multi-family homes, apartments, row houses, and studio flats. Contracts without prior approval will be void, effectively blocking speculative transactions.

💰 Strengthened Oversight on Overseas Funds

Foreign buyers must now disclose overseas funding sources and visa types. Suspicious transactions involving foreign capital inflows may be reported to the Financial Intelligence Unit (FIU) and forwarded to overseas financial authorities. The National Tax Service will also coordinate with international tax agencies if capital gains taxation is required abroad.

Previously, submission of funding plans was only mandatory in overheated speculation zones, but this obligation will now extend to all designated permit areas.

🏠 Residency Requirements

Approved foreign buyers must move in within 4 months and reside for at least 2 years. Local governments will issue compliance orders, and repeated fines will be imposed until obligations are fulfilled. In severe cases, purchase permits may be revoked.

📊 Expected Impact

This policy aims to block speculative demand fueled by foreign capital and ensure housing stability for Korean citizens. By targeting Seoul and major metropolitan areas, the government expects to minimize market disruption and enhance residential welfare.

Lee Sang-kyung, Vice Minister of Land, Infrastructure and Transport, stated: “This measure fundamentally blocks foreign speculative activities and helps stabilize housing prices while securing the residential welfare of citizens.”

☎️ Inquiries

  • Ministry of Land, Infrastructure and Transport – Land Policy Division: +82-44-201-3407
  • Financial Intelligence Unit – Planning & Administration: +82-2-2100-1734
  • National Tax Service – Offshore Information Division: +82-44-204-2912

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