More than 80 suspicious real estate transactions in Seoul involving foreigners found over past year
Published: 30 Dec. 2025, 15:48
Updated: 30 Dec. 2025, 18:25
Audio report: written by reporters, read by AI
![Apartments are seen from Mount Namsam in central Seoul on Aug. 8, 2024. [NEWS1]](https://koreaseafood.online/data/photo/2025/12/30/651fa071-291d-4ef8-9103-955f00611f8c.jpg)
Apartments are seen from Mount Namsam in central Seoul on Aug. 8, 2024. [NEWS1]
The Ministry of Land, Infrastructure and Transport has uncovered dozens of suspected illegal real estate transactions involving foreign buyers, including cases of unreported overseas funds and the misuse of corporate money to purchase property in Seoul.
The Land Ministry said Tuesday that it has concluded a targeted investigation into suspicious transactions involving foreigners’ purchases of nonresidential properties — including officetels, or buildings that combine office and residential space — and land, uncovering 88 cases suspected of violations. The probe was conducted in September and covered 167 transactions reported from July last year through this July. The investigation follows up on a previously announced probe into suspicious housing transactions by foreigners, and also included 36 housing deals.
A foreign national purchased an apartment in Seoul for 4.9 billion won ($3.4 million), with 3.8 billion won of the amount borrowed from a company where the buyer serves as an internal director — without proper accounting. Suspecting the misuse of corporate funds, the Land Ministry referred the case to the National Tax Service.
In another case, a foreigner bought an officetel in Seoul for 395 million won, financing 365 million won of the purchase with funds remitted from overseas without filing the required declaration. The land ministry forwarded the case to the Korea Customs Service on suspicion of illegal inflow of foreign capital.
Common patterns in the suspicious transactions included bringing in more than $10,000 in overseas funds without reporting it, or suspected currency exchange violations, such as illegal inflows that bypass foreign exchange banks. In one case, a child who bought a Seoul apartment for 1.18 billion won from a foreign mother was also referred to the tax authorities after securing about 300 million won from overseas without proper reporting.
![The most expensive apartment home in Korea, located in southern Seoul's Apgujeong neighborhood, is seen in the foreground on Dec. 24. [YONHAP]](https://koreaseafood.online/data/photo/2025/12/30/904546e2-7a34-4a67-8656-4dea69e8e2cb.jpg)
The most expensive apartment home in Korea, located in southern Seoul's Apgujeong neighborhood, is seen in the foreground on Dec. 24. [YONHAP]
There were also cases involving foreigners engaging in rental businesses despite lacking the legal status to do so. One foreigner entered Korea on a short-term stay of fewer than 90 days, purchased an officetel in Seoul and then leased it out under a monthly rental contract with a 120-million-won deposit, earning rental income before being caught. Another foreigner who bought a detached house in Gyeonggi for 1.45 billion won financed the purchase with a mortgage loan intended for living expenses, in violation of lending regulations.
The Land Ministry said it plans to continue targeted investigations into suspicious transactions by foreigners while also conducting on-site inspections for violations of owner-occupancy requirements. More than four months have passed since key areas in the Seoul metropolitan region were designated as land transaction permit zones, prompting the ministry to check compliance.
“We will respond strongly to illegal activities that arise in the course of foreigners’ real estate transactions,” said Kim Gyu-cheol, director-general of housing and land at the Land Ministry.
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 KIM JUN-YEON [[email protected]]
with the Korea JoongAng Daily
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