Is foreign appetite for housing a threat to Korea?
Residential properties owned by foreign nationals surpass 100,000 in 2024
Foreign nationals are increasingly entering the housing market, and their growing presence is beginning to raise questions about the future of housing access, investment behavior and regulatory oversight.
Over the past three years, the number of homes owned by foreign buyers has steadily increased, rising by 4 to 6 percent every six months. Recently, the trend reached a new milestone.
As of late December, foreign nationals owned more than 100,000 housing units in South Korea — the first time the figure has crossed that threshold since the government began tracking it in 2022, according to data from the Ministry of Land, Infrastructure and Transport.
Though these properties comprise only about 0.5 percent of South Korea's roughly 20 million housing units, the uptick has prompted questions about whether some purchases are being made for investment purposes rather than for residential use.
Regulatory gaps for non-residents have also been a point of discussion.
The available data provides a broad snapshot but leaves out key details.
It does not distinguish between buyers who reside in Korea and those who may be investing from overseas. Nor does it track the motivations behind purchases — whether for long-term living, rental income or speculation.
Foreign residents who have stayed in Korea for more than 90 days now number over 2 million, suggesting that, proportionally, foreign ownership remains relatively modest. Still, patterns within the data reveal some concentration. Chinese nationals accounted for the largest share of foreign-owned homes, followed by US and Canadian citizens.
The capital region is by far the most popular area for foreign buyers. Nearly three-quarters of all foreign-owned homes are located in the greater Seoul area, with more than 23,000 properties situated within the city itself.
Most foreign homeowners — about 93 percent — own just one home. However, a small number hold multiple properties, including 461 individuals who own five or more units, which some see as a potential sign of investment activity.
As the trend continues, policymakers and analysts are watching closely, not because the numbers are overwhelming, but because of the broader implications — from housing availability to the effectiveness of existing oversight mechanisms.
Dodging the rulebook
Some argue that foreign nationals may have an easier time acquiring real estate in South Korea by securing financing from lenders in their home countries, a strategy that could allow them to bypass Korea's stringent loan regulations.
Certified transcripts — documents required when purchasing land or housing in Korea — show instances of foreign buyers acquiring high-end properties at record-high prices, often paid in full with cash.
'Foreigners take out loans from overseas banks to purchase housing here, distorting the local real estate market,' said Kwon Dae-jung, a professor of real estate at Sogang University's Graduate School.
Others, however, argue that the practice is likely limited in scope, as obtaining loans for overseas property purchases can be difficult.
'Securing a loan in a foreign country to buy residential property in Korea would not be easy, unless the buyer is extremely wealthy,' said an official at a local real estate investment firm.
'Even in commercial real estate, offshore investors usually prefer to finance through local banks. For residential housing, cross-border financing tends to be even more difficult.'
Foreign nationals are subject to the same borrowing limits at Korean banks as local citizens, including regulations based on loan-to-value and debt-to-income ratios.
Still, completely closing off regulatory loopholes remains a challenge. While Korea imposes heavier taxes on multi-homeowners, enforcing these rules among foreign nationals can be challenging, particularly in identifying household members living abroad.
Calls for tightened grip
Regulatory efforts to manage demand from foreign homebuyers in Korea continue to gain traction, with some measures targeting Chinese nationals — the largest group of foreign property owners in the country.
In May, Rep. Ko Dong-jin of the ruling People Power Party proposed a bill that would introduce a permit system for foreign nationals seeking to purchase property in the greater Seoul area.
Citing the principle of reciprocity, Ko argued that Chinese nationals' access to Korean real estate should be limited, pointing out that South Koreans face similar restrictions when attempting to purchase property in China.
Ko's proposal is part of a broader, bipartisan push by lawmakers in recent years to tighten regulations on foreign ownership.
Other initiatives have included calls for higher acquisition taxes and stricter property-related rules for non-Korean buyers. However, none of these measures have passed the legislative threshold.
Legal experts argue that regulating property purchases by nationality could violate the constitutional principle of reciprocity.
Despite the legal challenges, authorities are continuing their efforts to monitor and respond to growing concerns.
On Monday, Seoul Mayor Oh Se-hoon ordered a comprehensive investigation into real estate transactions involving foreign nationals.
He called for a full review of foreign ownership patterns and proposed additional safeguards to prevent potential market distortions or what he described as 'reverse discrimination' against Korean citizens.
Although there is currently no conclusive evidence that foreign homeownership is driving instability in the housing market, officials remain wary.
'The government has to figure out a way to strengthen measures to track down foreign purchases of local residential properties. Otherwise, the rising foreign demand will drive up further market distortion," Kwon said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
2 days ago
- Korea Herald
US may target Samsung, Hynix, TSMC operations in China, sources say
The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter. The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries. A White House official said the US was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed. "There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations." Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4 percent, Lam Research fell 1.9 percent and Applied Materials sank 2 percent. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5 percent. A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either. In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods. In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade. A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it. The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements. 'Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.' Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.
Korea Herald
2 days ago
- Korea Herald
GSMA: MWC25 Shanghai showcased tech innovation in robotics, AI and 5G-A from China and Asia to an international audience
MWC25 Shanghai saw strong international participation and attendance, with 45,000 attendees including nearly 4,000 from the C-suite and over 40% representing industries beyond mobile SHANGHAI, June 20, 2025 /PRNewswire/ -- MWC25 concludes following three days of innovative technology showcases, keynote sessions and collaborative discussions. Charismatic humanoid robots, urban robo-taxis, AI-enabled devices, satellite comms, EVs and more delighted the 45,000 attendees from 128 countries and territories. The global thought leadership stage set by MWC25 saw nearly 40% of the event's 400 speakers hail from international markets. By welcoming policymakers and leaders to the first GSMA Policy Leaders Forum, including 35 delegations from regions such as LATAM, Asia, the Middle East, Eurasia and Africa, MWC Shanghai is the ideal platform for business leaders, policymakers and the international community to meet, network and collaborate. John Hoffman, CEO of GSMA Ltd., said: " MWC25 Shanghai has once again proven its place as a global meeting point for the industry. China and Asia's exceptional technological innovation is awe-inspiring; from the show floor to the keynote stage, it's been fantastic to see such a diverse mix of companies and ideas driving the future of connectivity. On behalf of the GSMA, my sincere thanks to H.E. Wang Jingtao, Vice Minister, Cyberspace Administration of China; H.E. Chen Jie, Vice Mayor of Shanghai; Mr. Wu Jincheng, Governor of Pudong New Area; and all our attendees, exhibitors, partners and sponsors for making this such a successful edition of MWC Shanghai. We're already looking forward to welcoming you back in 2026." 400 speakers and thought leaders joined more than 400 exhibitors, sponsors and partners to contribute to a packed agenda exploring the accelerating shift towards a more intelligent, connected future. Vivek Badrinath, Director General, GSMA, said: " This week has highlighted the rapid progress of the Chinese ecosystem in the development of 5G-Advanced, AI and open API innovation on the path to achieving 5G's full potential MWC Shanghai continues to be a valuable platform to share ideas, launch partnerships, and be recognised for important work. Congratulations to everyone involved in making this event a success." The GSMA's Head of Greater China, Sihan Bo Chen & the GSMA's Head of MWC Americas and Shanghai, Erich Hermann took a L4-level, robo-taxi by the Pudong Government. They reflect on MWC25 Shanghai's platform for inspirational tech use cases, looking forward to MWC25 Las Vegas where IT leaders will explore the industrial connectivity enabling these real-world applications.
Korea Herald
2 days ago
- Korea Herald
Canton Fair Builds Year-Round Trade Ecosystem with Upgraded Digital Platform and Dual-Version App
GUANGZHOU, China, June 20, 2025 /PRNewswire/ -- As the 137th China Import and Export Fair (Canton Fair) successfully concluded on May 5, its commitment to building a "never-ending" trade platform was more evident than ever. The event saw a record-breaking turnout, with over 280,000 overseas buyers from 219 countries and regions attending in person, up 17.3% from 135th session. Notably, the Fair also attracted 527,185 online participants from 229 countries and regions, highlighting the significant role of digital engagement in expanding its global reach. This impressive online participation underscores the Fair's evolution into a dynamic, year-round business ecosystem, seamlessly blending physical and virtual experiences to foster international trade. A key highlight of the 137th Canton Fair was the continued optimization of the Fair's digital infrastructure. The official Canton Fair online exhibition platform attracted 4.37 million cumulative visits to exhibitor stores, reinforcing its role as a vital hub for global trade connections. Designed to bridge time zones and geographical boundaries, the platform enables buyers and suppliers to begin negotiations before arriving on-site and continue seamlessly after the physical exhibition ends. Building on momentum from previous editions, the Canton Fair has upgraded its mobile application by launching two tailored versions: one for buyers and one for suppliers. The buyer version enhances sourcing efficiency through improved search and recommendation engines, a trade matchmaking function, and added services such as e-badge scanning for exchanging digital business cards, invitation letter applications, and translator bookings. The supplier version focuses on supporting real-time trade dialogue, offering practical tools such as buyer reception aids, note-taking features, and integrated trade matchmaking services. These upgraded apps serve as all-in-one trade tools, streamlining everything from itinerary planning to lead follow-up. By mid-June, the apps had been downloaded over 350,000 times. In addition, the Fair hosted a series of online industry-specific activities and matchmaking events, fostering more effective online connections between global buyers and Chinese suppliers. The Canton Fair is evolving beyond its traditional role as a trade exhibition, transforming it into a year-round global business ecosystem. Through upgraded digital tools, enhanced mobile app functionality, and an expanded online engagement strategy, the Fair now facilitates continuous trade matchmaking and seamless buyer-supplier interaction. This digital transformation showcases how technology can extend the impact of physical events, creating an always-on platform that drives international business growth beyond the exhibition period.
