According to the South Korean Ministry of Land, Infrastructure and Transport on September 23, 2026, the government launched a targeted investigation into 840 suspicious real estate transactions involving foreign nationals.
Enhanced Screening Criteria Under Revised Regulations
The Ministry of Land, Infrastructure and Transport expanded its enforcement framework by applying revised screening criteria under the Enforcement Decree of the Real Estate Transaction Reporting Act. This regulatory update allows authorities to tap into newly accessible financial datasets to verify actual capital sources behind foreign property purchases.
The investigation utilizes specific financial records, including proceeds from the sale of cryptocurrencies, alongside loans from overseas financial institutions and the buyer’s stay status. Because of these tighter screening parameters, the number of flagged suspicious transactions grew from 605 cases in the previous period to 840 cases in the current round.
Focus on Illegal Foreign Capital and Compliance
Investigators are closely examining actual funding sources to root out illegal capital inflows and unlawful practices such as operating unauthorized rental businesses without proper visa qualifications, according to the Ministry. Furthermore, the national government is coordinating with local authorities to inspect whether buyers are genuinely fulfilling mandatory residency requirements within designated land transaction permission zones.
Where violations of residency rules inside permitted zones are confirmed, the head of the local city, county, or district office will issue an official compliance order. If a property owner violates this directive, authorities can impose mandatory performance fines and even revoke the original property transaction permit if non-compliance continues.
Official Stance on Market Transparency
Shin Yun-geun, the Land Policy Officer at the Ministry of Land, Infrastructure and Transport, stated that the government will thoroughly investigate illegal transactions and respond with strict enforcement measures to prevent foreign housing speculation from damaging South Korea’s transparent real estate transaction order, as reported by BBS News.
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