The government will extend for one year the designation period of foreigner land transaction permit zones that were designated in Aug. last year to curb foreigners' speculation in dwellings.
The Ministry of Land, Infrastructure and Transport said on the 20th it will reassign the foreigner land transaction permit zones for one year from the 26th to Aug. 25, 2027.
The designated areas are the same as last year: all of Seoul and 23 cities and counties including Suwon, Seongnam, Goyang, Yongin, Ansan, Bucheon, Gwangmyeong, Pyeongtaek, Gwacheon, Hwaseong, Namyangju, and Paju in Gyeonggi. Incheon will apply to nine autonomous districts—Michuhol, Yeonsu, Namdong, Bupyeong, Gyeyang, Seohae, Geomdan, Yeongjong, and Jemulpo—reflecting last month's administrative district reorganization.
The permit targets, as before, are single-family, multi-household, multi-unit, row houses, and apartments. The permit area thresholds remain over 6㎡ in residential zones and over 15㎡ in commercial zones.
In the Seoul metropolitan area, foreigner transactions of dwellings totaled 6,024 from September last year, after the land transaction permit zones were designated, through June this year, down 27% from the same period a year earlier (4,397).
By region, Seoul fell 37%, Gyeonggi 23%, and Incheon 29%. By nationality, transactions by Chinese nationals fell 24% and by U.S. nationals 40%.
In the three Gangnam districts—Gangnam, Seocho, and Songpa—and Yongsan District, transaction volume fell 49%. Seocho District, in particular, dropped 73%, the largest decline.
By regional share of foreigner transactions in the metropolitan area, Gyeonggi accounted for 66%, and Seoul and Incheon each for 17%. By nationality, Chinese nationals made up 72% and U.S. nationals 13%. Dwellings priced at 600 million won or less accounted for 81% of the total, and by dwelling type, apartments were 62% and multi-unit dwellings 33%.
The Ministry of Land, Infrastructure and Transport (MOLIT) plans to prevent foreigners' speculation in dwellings within the metropolitan area through this reassignment of foreigner land transaction permit zones. It will also closely monitor the designated areas and, if suspicious illegal activities such as abnormal transactions and speculative behavior are identified, will respond strictly in cooperation with relevant agencies.
The Ministry of Land, Infrastructure and Transport (MOLIT) newly designated 353 outer-island areas of the national territory, including Ulleungdo and Daheuksando, as foreigner land transaction permit zones for proactive management for defense purposes. This is the third designation following 2014 and 2025. The designation takes effect immediately upon public notice.
Foreigners seeking to acquire land within a land transaction permit zone must obtain city, county, or district approval before concluding a land acquisition contract, and cities, counties, and districts must decide on approval after consultation with related administrative agencies such as the Ministry of National Defense and the National Intelligence Service (NIS).
If a foreigner concludes a land acquisition contract without obtaining approval, the contract is invalid and the person is subject to up to two years in prison or a fine of up to 20 million won.
Shin Yun-geun, land policy director at the Ministry of Land, Infrastructure and Transport (MOLIT), said, "As foreigner land transaction permit zones expand to outer-island areas of the national territory that require proactive management for national defense purposes, it is expected to contribute to strengthening our territorial sovereignty."