Land Ministry may have uncovered 290 illegal housing transactions by foreigners
Published: 17 Nov. 2025, 19:04
![Apartments are seen from Mount Namsan in central Seoul on Nov. 13. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/11/17/9912f3a5-a096-4368-8df0-47cb42e707f7.jpg)
Apartments are seen from Mount Namsan in central Seoul on Nov. 13. [YONHAP]
The Ministry of Land, Infrastructure and Transport said on Monday that it may have uncovered 290 illegal acts by foreigners who purchased housing units in Korea. The government said it will impose the strongest possible penalties if the violations are confirmed to be true.
The findings were reviewed on Monday at the second meeting of the government’s task force for illegal real estate activity, chaired by the Office for Government Policy Coordination. Officials from the Land Ministry, Financial Services Commission, National Tax Service and National Police Agency examined the results of their ongoing investigations and outlined future enforcement plans.
The Land Ministry analyzed 438 housing transactions by foreign buyers between June of last year and May of this year. Irregularities were found in 210 of those transactions, resulting in 290 suspected violations.
These violations include false transaction reports, illicit or disguised gifting, illegal overseas funds, the use of trusts, the misuse of loans and rental businesses without proper qualifications. By nationality, the majority of suspects were from China with 125 cases, followed by the United States with 78, Australia with 21 and Canada with 14.
In one case, a foreign buyer purchased a 3.1-billion-won ($2.1-million) apartment in Seoul and registered their parents as tenants under a jeonse contract, or a long-term housing rental deposit, with a 2-billion-won deposit. The buyer also borrowed 300 million won from their parents, raising suspicions of excessive related-party deposits and loans.
![Apartment complexes are seen in Seoul on Nov. 13. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/11/17/f3ab827e-969d-4140-aafa-7ed906ffa926.jpg)
Apartment complexes are seen in Seoul on Nov. 13. [NEWS1]
In another case, a foreign national who entered Korea on an H-2 working visit visa bought an apartment in Incheon from another foreigner of the same nationality, inherited the security deposit and collected monthly rent. Authorities are investigating the case as one of unauthorized rental income.
Under current law, operating a rental business without proper qualifications can result in up to three years in prison or a fine of up to 30 million won. Violations involving trusts or filing false registration details can culminate in up to five years in prison or fines of up to 200 million won. Authorities said they are considering strengthening penalties and enforcement methods, with specific measures to be discussed at the next meeting.
The ministry plans to complete its ongoing investigation into suspicious foreign transactions involving nonresidential properties and land by the end of the year.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG EUN-HYE [[email protected]]
with the Korea JoongAng Daily
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