Beginning Aug. 26, foreign individuals, corporations and governments must obtain prior approval before acquiring residential property in designated areas. Buyers granted approval will be required to move in within four months and maintain residency for at least two years.
The restrictions will apply across all of Seoul, seven districts in Incheon and 23 municipalities in Gyeonggi Province, which together make up the greater Seoul metropolitan area.
The measure will remain in effect through Aug. 25, 2026, though officials left open the possibility of extending it depending on housing market conditions.
The restrictions were prompted by concerns that overseas buyers were fueling price pressures while taking advantage of looser financing opportunities.
Domestic buyers have long faced strict mortgage regulations, while foreigners have been able to tap banks in their home countries for substantial loans — a disparity critics described as a form of “reverse discrimination.”
All types of residential housing are covered by the ban, including apartments, single-family homes and multi-unit dwellings larger than six square meters. Commercial and office properties will remain exempt.
Violators will be ordered to comply within three months or face fines of up to 10 percent of the property’s purchase price, with penalties applied repeatedly until compliance is achieved, the ministry said.
While Gyeonggi Province introduced limited curbs on foreign purchases in select areas in 2020, this is the first time the central government has enacted such broad restrictions across the entire capital region.
“This measure is designed to prevent speculation through overseas capital inflows, fundamentally blocking market-disrupting activities by foreigners and stabilizing housing prices to contribute to the housing welfare of our people,” Vice Minister Lee Sang-kyeong said.
reporter
Kim Dong-young
davekim0807@ajupress.com
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