The Ministry of Land, Infrastructure and Transport announced that the "Enforcement Decree and Enforcement Rules of the Act on Reporting and Investigation of Real Estate Transactions" amendment, aimed at securing the effectiveness of investigating reported transaction details as part of measures to prevent real estate speculation by foreigners, will be promulgated and enforced on the 22nd.
This measure addresses issues that arose during the special investigation of foreign housing speculation conducted in October last year. At that time, some foreigners’ residences were unclear, causing registration documents to be returned and delaying requests for supporting documents. Additionally, a lack of information such as length of residence made it difficult to investigate suspected illegal acts like disguised gifts.
Accordingly, the amendment mandates that if the buyer does not have an address or place of residence in Korea, they must designate and report a trustee manager. A trustee manager refers to a person who receives documents sent by the Minister of Land, Infrastructure and Transport or the reporting authority on behalf of the buyer in relation to the investigation of reported details under Article 6 of the Real Estate Transaction Reporting Act.
For foreigners who reside long-term in Korea, submission of a certificate of foreigner registration (or domestic residence report) is required, enabling cross-verification of addresses just like for domestic residents. Furthermore, a legal basis has been established to request immigration records to verify foreigners’ domestic residence status and health insurance information to understand household composition from relevant administrative agencies.
Nam Young-woo, Director of Land Policy at the Ministry of Land, Infrastructure and Transport, stated, "We expect that this amendment will enable effective investigation and response to disruptive activities in the real estate market."
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