Korea to Track Foreign Homebuyers' Fund Sources, Acquisition Methods

South Korea will compile 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 business plan to the National Assembly's Land, Infrastructure and Transport Committee, according to political sources on Monday.

The new statistics will categorize how foreigners acquire domestic properties—whether through purchase contracts, gifts, inheritance, or auctions. Until now, authorities could only track ownership by nationality, housing type, and region, limiting their ability to verify transaction characteristics and fund inflows.

Once implemented, the data will enable detailed analysis of foreign housing transaction flows and serve as foundational material for filtering out suspicious transactions and irregular inheritance or gift transfers.

The move aligns with the Lee Jae-myung administration's declared "war on speculation." Foreign-owned housing in Korea surged 9.5 percent in one year, from 95,058 units in June 2024 to 104,062 units in June 2025. Buying activity has concentrated in the Seoul metropolitan area, including Gyeonggi Province and Incheon, fueling concerns about speculative transactions.

"When we examine how foreigners acquire housing in the domestic real estate market, policy tools will inevitably become more precise," a ruling party official said. "Strengthening fund source verification based on the new statistics will make it easier to identify abnormal transactions and irregular gifts or inheritances."

The Real Estate Board will also introduce supplementary indicators for commercial vacancy rates. While existing data classified vacancies by floor area—medium-large versus small-scale properties—the agency will now separately provide ground-floor vacancy rates and combined general commercial vacancy rates.

Ground-floor vacancy rates are considered a key indicator of commercial district health. These spaces attract the highest tenant demand due to superior accessibility and visibility, typically generating the strongest sales. Rising ground-floor vacancies signal that businesses cannot generate enough revenue to cover high rents, indicating a commercial downturn.

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