Korea to Track Foreign Home Buyers by Acquisition Type

South Korea will introduce new statistics breaking down foreign housing ownership by acquisition method, as the government intensifies its crackdown on real estate speculation.

The Korea Real Estate Board, an agency under the Ministry of Land, Infrastructure and Transport, recently reported its 2025 work plan to the National Assembly's Land, Infrastructure and Transport Committee, according to political sources on Monday. The plan includes producing new statistics on foreign housing ownership and commercial vacancy rates to support government and parliamentary real estate policies. The agency is reportedly reviewing a detailed roadmap for implementing the statistics.

The new data will categorize how foreigners acquire domestic properties—whether through purchase contracts, gifts, inheritance, or auctions. Until now, available data only showed ownership by nationality, housing type, and region, limiting authorities' ability to verify transaction characteristics or track capital flows. Once acquisition-based statistics are established, they will enable detailed analysis of foreign housing transactions and serve as foundational data for detecting irregular transactions and illegal inheritance or gift transfers.

The measure is seen as an extension of government and ruling party policies aimed at normalizing the real estate market. Foreign-owned housing surged 9.5% year-over-year, from 95,058 units in June 2024 to 104,062 units in June 2025. Buying activity has been concentrated in the Seoul metropolitan area—including Seoul, Gyeonggi Province, and Incheon—where demand is highest, raising concerns about speculative transactions. Experts have argued that statistics tracking acquisition channels and capital flows are prerequisites for precise policy responses to these market trends.

"When we can see exactly how foreigners are acquiring properties in the domestic real estate market, policy tools will inevitably become more precise," a ruling party official said. "If we strengthen verification of funding sources based on new statistics, it will become easier to identify abnormal transactions and illegal gifts or inheritances."

The Real Estate Board will also introduce supplementary indicators for commercial vacancy rates. While existing statistics classify general commercial vacancies by floor area—medium-to-large versus small-scale—the agency plans to add first-floor vacancy rates and integrated general commercial vacancy rates. The change addresses criticism that current vacancy statistics do not adequately reflect actual commercial district conditions.

First-floor vacancy rates are considered a key indicator of commercial district health. These spaces attract the strongest tenant demand due to superior accessibility and visibility, generating the highest sales—which explains why popular brand stores occupy ground floors. Rising vacancies at this level signal that businesses cannot generate enough revenue to cover high rents, indicating a commercial district downturn.

"We will expand production of new statistics to reflect market changes in a timely manner and enhance policy utility," a Real Estate Board official said. "We will build a data system that can be utilized by various users including the National Assembly, government, and the public."