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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] South Korea’s Ministry of Land, Infrastructure, and Transport (MLIT) has identified 282 suspicious real estate transactions involving foreigners, with Chinese nationals leading the list at 192 cases (44.3%). U.S. nationals followed with 100 cases (14.9%), and Australians ranked third with 22 cases (5.4%). Combined, suspected violations by Chinese and U.S. nationals accounted for 292 cases, representing 67.3% of the total.
In a statement released Sunday, the ministry announced it has flagged 433 suspected violations tied to these transactions and referred them to the Ministry of Justice, Financial Services Commission, National Tax Service, and Korea Customs Service for further investigation and enforcement actions, including tax recovery.
The investigation revealed several common patterns of potential violations. These included 77 cases where individuals were suspected of smuggling funds into South Korea without proper declaration, either by carrying over $10,000 in cash or using illegal underground banking methods known as “hwanchigi.”
Fifteen cases involved foreigners on visas, such as the H-2 working visit visa, engaging in unauthorized rental activities not permitted under their visa terms. Another 15 cases flagged questionable financial dealings, such as real estate purchase loans from family members or corporate entities without formal loan agreements or proper interest payments.
The ministry also identified seven cases in which business owners allegedly used corporate loans intended for operational purposes to purchase real estate. Additionally, 60 cases involved discrepancies between the reported and actual transaction amounts or contract dates.
The geographic distribution of violations showed that the Gyeonggi Province had the highest number of cases with 128 (29.6%), followed by Seoul with 64 cases (14.8%), Chungbuk with 59 cases (13.6%), and Incheon with 40 cases (9.2%). The greater Seoul metropolitan area accounted for 232 violations, or 53.6% of the total.
The South Korean government has been stepping up its efforts to curb speculative real estate activities by foreigners. Since 2022, the MLIT has conducted annual investigations targeting suspicious real estate transactions. The ministry also collaborates with the Korea Customs Service to monitor foreign loans and funds brought into the country, aiming to address regulatory gaps that some foreign buyers exploit.
The findings underscore the government’s commitment to strict enforcement of real estate laws and ensuring transparency in property transactions, officials said.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
