▲Apartment complex seen from Namsan Observatory in Seoul. (Yonhap News)
The government is strengthening real estate transaction reporting obligations to prevent real estate speculation by foreigners and others. For foreigners, they are required to additionally report their residency status (visa type) and domestic residence status, and for housing transactions subject to land transaction permits, submission of a financing plan and supporting documents is mandatory.
The Ministry of Land, Infrastructure and Transport announced on the 9th that it will prepare an amendment to the ‘Enforcement Decree and Enforcement Rules of the Real Estate Transaction Reporting Act’ containing these contents and take effect from the 10th.
According to the amendment, foreigners who purchase domestic real estate by concluding a transaction contract after 10 days must report their status of residence (visa type), address, and whether they have resided for more than 183 days in addition to the existing reporting items. Residence for 183 days is an item related to the residency requirements for tax payment obligations under the Income Tax Act.
In addition, regardless of whether you are a domestic or a foreigner, if you receive a land transaction permit and sign a housing transaction contract after February 10, you must submit a financing plan and supporting documents when reporting the transaction. In the financing plan, overseas financing details such as overseas deposits, overseas loans, and names of overseas financial institutions are added, and other funds include not only the proceeds from the sale of stocks and bonds, but also the proceeds from the sale of virtual assets (virtual currency).
In addition, regardless of nationality and land transaction permit zone, if a real estate sales contract is concluded after 10 days, documents proving the payment of the down payment, such as a sales contract and down payment receipt, must be attached when reporting the transaction. However, cases where the parties file a joint report in a transaction other than a brokerage contract are excluded.
Last year, the Ministry of Land, Infrastructure and Transport discovered 416 cases of suspected illegal activity through a planned investigation into illegal real estate activities by foreigners and notified them to relevant agencies such as the Korea Customs Service, the Ministry of Justice, and the National Police Agency. The types of arrests were 326 houses, 79 officetels, and 11 lands.
The Ministry of Land, Infrastructure and Transport plans to strengthen its response to illegal activities, including checking the fulfillment of actual residence obligations in land transaction permit areas starting in March of this year in cooperation with local governments and launching a planning investigation into abnormal transactions starting in August to check for illegal importation of foreign funds.
Kim Lee-tak, First Vice Minister of Land, Infrastructure and Transport, said, “With the implementation of the amendment, a foundation has been laid for more thorough inspection of illegal fund inflows and illegal transactions,” and added, “We will establish a market order that protects actual consumers by taking strict responses to real estate illegal activities and improving the system when necessary.”
date: 2026-02-09 02:06:00
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