Representative Koh Dong-jin of the ruling People Power Party submitted the bill to the National Assembly on Tuesday, proposing mandatory reciprocity measures and new permit requirements for non-citizens seeking to buy land in Seoul, Gyeonggi Province, and Incheon.
The proposed restrictions come amid mounting concern over foreign investment in the country’s residential property market.
According to government data cited by Koh, foreign real estate purchases in South Korea rose 12 percent in 2024 to more than 17,000 transactions. Of those, Chinese nationals accounted for approximately 65 percent, or 11,346 buyers.
The capital region — already under pressure from soaring housing prices — has become a focal point. Gyeonggi Province recorded the highest number of foreign buyers at 7,842, followed by Incheon with 2,273 and Seoul with 2,089.
Koh argued that the current legal framework creates a form of “reverse discrimination,” as South Korean citizens are subject to tight mortgage regulations, while some foreign buyers, particularly Chinese nationals, are able to obtain significant financing through banks in their home countries.
“While our citizens are bound by stringent loan restrictions when purchasing homes, foreign nationals — especially from China — can access large-scale funding from overseas institutions and buy property here with relative ease,” Koh said during a press briefing.
Although reciprocity clauses already exist in South Korean law, they are not compulsory and lack the enforcement mechanisms needed for implementation, Koh said.
His bill seeks to make such measures mandatory, requiring the government to align real estate access for foreigners with the policies that South Korean nationals face in their respective countries.
“When countries like China impose discriminatory restrictions on South Korean buyers, our government should respond with equivalent measures,” Koh said.
reporter
Kim Dong-young
davekim0807@ajupress.com
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