Mandatory Residence of Up to 5 Years for Occupants of Housing Subject to Price Ceiling System in the Seoul Metropolitan Area

Not Only Public Housing Sites but Also Private Housing Sites to Be Applied
Mandatory Residence Period of About 2 to 3 Years Expected to Be Set

View of the apartment complex along the Han River from the 63 Observatory in Yeouido, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Jiwon] Starting February next year, residents moving into housing subject to the private land price ceiling system in the Seoul metropolitan area will be required to fulfill a residence obligation period of up to 5 years. Additionally, those who violate resale restrictions will face a 10-year ban on subscription eligibility.

The Ministry of Land, Infrastructure and Transport announced that a partial amendment to the Housing Act containing these provisions was approved at the Cabinet meeting on the 11th. The amendment is scheduled to take effect in February next year after a six-month grace period.

According to the amendment, residents of housing subject to the private land price ceiling system in the Seoul metropolitan area will be obligated to reside for up to 5 years. This measure aims to block speculative demand and supply housing primarily to actual demanders.

The Ministry plans to set the specific residence obligation period through the enforcement decree of the Housing Act. It is predicted that the residence obligation period will be set at around 2 to 3 years, which is more lenient than the existing obligation period for public land sites.

If a resident subject to the residence obligation of housing under the price ceiling system intends to move within the obligation period due to business or other reasons, they must apply to the Korea Land and Housing Corporation (LH) to purchase the housing. LH is required to purchase the housing unless there are special reasons.

Violation of these regulations may result in imprisonment for up to one year or a fine of up to 10 million KRW.

Furthermore, if LH or local public corporations participate as implementers of small-scale maintenance projects and meet public interest requirements, they will be excluded from the scope of the price ceiling system. This aims to revitalize small-scale maintenance projects that renovate areas densely populated with old and poor-quality buildings and improve housing.

Those who violate housing resale restrictions may have their eligibility as residents restricted for up to 10 years.

Violators of housing supply order and resale restrictions may face imprisonment for up to 3 years or fines up to 30 million KRW.

This amendment is scheduled to be enforced six months after promulgation, considering revisions to presidential decrees delegated by subordinate laws.

The residence obligation introduction related to housing subject to the price ceiling system will apply from the first case of applying for resident recruitment approval after the enforcement of this law.

The exclusion provision for small-scale maintenance projects from the price ceiling system will apply from the case of resident recruitment announcement after the enforcement of this law, and the restriction on eligibility for those violating resale restrictions will apply from the act of violating the resale restriction period after the enforcement of this law.

This content was produced with the assistance of AI translation services.