Amid the recent surge in real estate prices, the “real estate shopping” cases in which foreign nationals bulk-buy Korean real estate properties continue to increase in the Seoul metropolitan area, thus raising concerns over foreign nationals’ speculative acquisition of properties.

In fact, according to the Korea Real Estate Board, a total of 21,048 building structures were purchased by foreign nationals in Korea last year, the largest figure since the associated statistics began to be complied, and it was also an increase of 18.5% compared to the previous year.

However, under the current statute, foreign nationals who wish to acquire real estate in Korea are allowed to do so simply by reporting the purchase, regardless of the size or purpose thereof, in the same manner allowed for Korean citizens, except for land required to obtain permission within certain zones such as military facility protection zones and cultural property protection zones.

Therefore, so as to prevent disturbance in the real estate market caused by speculative sales by foreign nationals, the Act aims to include high-speculation areas pursuant to Article 63 of the Housing Act and areas subject to adjustment pursuant to Article 63-2 of the said Act (Article 9 (1) 5).

Article 9