Ministry of Land to Expand On-Site Joint Inspections
Targeting Record-High Transactions and Suspected Gift Transactions
Focus on Funding Plans, Lending Regulation Violations, and Residency Compliance
Special Investigations to Include Corporate and Foreigner Transactions
The government has decided to conduct a comprehensive investigation to determine the legality of transactions involving record-high prices for high-priced homes in certain areas of Seoul and the metropolitan area, as well as transactions suspected of being disguised gifts with low self-funding ratios. Until now, only selected cases had been investigated. The government will also check whether the recently implemented lending regulations, which were announced last month and took effect immediately, are being properly followed.
On July 3, the Ministry of Land, Infrastructure and Transport announced that starting this month, it will expand joint inspections of the real estate market to cover all of Seoul, as well as Gwacheon and Bundang in Seongnam, Gyeonggi Province. Previously, the ministry had conducted targeted investigations focusing on 88 apartment complexes in areas such as the three Gangnam districts of Seoul (Gangnam, Seocho, and Songpa), as well as Mapo, Yongsan, and Seongdong districts, selecting transactions suspected of legal violations.
Real Transaction Notice from a Licensed Real Estate Agency in Mapo, Seoul. 2025.06.27 Photo by Dongju Yoon
In most areas of Seoul, as buying demand has surged, the number of record-high transactions in major apartment complexes has increased significantly. In response, the scope of the investigation will be greatly expanded for more thorough scrutiny. The government did not disclose the specific threshold for what constitutes a high-priced home. A representative from the Korea Real Estate Board explained, "We have internal criteria for defining high-priced homes, but there are concerns about potential circumvention if those standards are made public."
In addition, the government plans to conduct a full investigation into transactions suspected of being illegal under corporate names above a certain amount, as well as transactions suspected of being disguised gifts. Authorities will verify whether the submitted funding plans are appropriate, and depending on the nature of any violations, will notify relevant agencies such as the National Tax Service, the Financial Services Commission, or local governments. They will also thoroughly check for violations of lending regulations. If violations are found, measures such as loan recovery will be taken through financial institutions.
The number of inspection teams, currently three, will be increased to six. These teams are composed of staff from the Ministry of Land, Infrastructure and Transport, the Seoul Metropolitan Government, Gyeonggi Province, local city, county, and district governments, and the Korea Real Estate Board. The ministry stated, "In response to concerns about market overheating, we will expand both the scope of regions and the number of inspection teams. We will focus on verifying the accuracy of submitted funding plans, checking for violations of lending regulations, and ensuring compliance with residency requirements for land transaction permits."
In the first round of investigations, 108 cases were uncovered based on reports filed in January and February of this year. The investigation into transactions reported in March and April is currently underway and is scheduled to be completed by next month.
A view of apartment complexes in downtown Seoul as seen from Namsan, Seoul. 2025.06.27 Photo by Dongju Yoon
During on-site inspections, authorities will check whether funding details and supporting documents have been submitted, and will compare the items listed in the funding plan with the supporting documents. If any circumstances suggesting illegal transactions are found, those cases will be included in targeted investigations and verified through additional explanatory materials. One of the main focuses will be on disguised loans, such as purchasing homes using business loans under corporate names to circumvent lending regulations.
The government will also investigate illegal real estate transactions by foreigners. On-site inspections will be conducted for speculative transactions involving illegal inflow of overseas funds and disguised gifts, and targeted investigations will begin this month.
Kim Gyucheol, Director General for Housing and Land Policy at the Ministry of Land, Infrastructure and Transport, stated, "We will respond firmly and strictly to illegal and unfair practices that disrupt order in the real estate market," adding, "Until the real estate market stabilizes, we will thoroughly block speculative demand through joint on-site inspections and targeted investigations with relevant agencies."
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