Bill to Strengthen the Principle of Reciprocity
Measures to Prevent Discrimination Against Korean Nationals
Representative Kim Mi-ae Also Proposes Similar Bill
A bill aimed at preventing real estate speculation by foreigners has been introduced by the Democratic Party of Korea.
On July 11, Eonju Lee, Supreme Council Member of the Democratic Party, proposed an amendment to the Act on Report of Real Estate Transactions, which includes provisions to prevent real estate speculation by foreigners.
The amendment stipulates that the principle of reciprocity, which currently applies to real estate transactions, will be revised as a mandatory regulation. It also requires foreigners to obtain permission to acquire real estate in Korea before signing a contract, and imposes a mandatory residence period for foreigners acquiring residential properties, among other key measures.
The purpose of the bill is to strengthen the principle of reciprocity in foreign real estate investment, prevent reverse discrimination against Korean nationals, and promote stability and sound development in the real estate market. This is in response to the recent increase in foreign ownership and leasing of real estate, particularly in areas with high potential for price increases such as the three districts of Gangnam in Seoul.
Lee stated, "Recently, there has been an increase in real estate speculation by foreigners and signs of rising property prices. While Korean citizens are subject to strict regulations under government real estate policies, foreigners are effectively exempt from regulations on the number of properties owned, such as loan restrictions for multiple homeowners. In addition, exceptions are made to the six-month residency requirement when utilizing loans, and if a foreigner purchases a home with a loan from a financial institution in their own country, domestic regulations cannot be applied. This creates a situation of de facto reverse discrimination." She explained, "The bill is based on two principles: first, the principle of reciprocity, taking into account the regulations that the relevant country imposes on our citizens; and second, ensuring that Korean nationals are not subject to reverse discrimination in domestic real estate policy."
Previously, last month, Kim Mi-ae, a lawmaker from the People Power Party, also introduced a similar bill requiring foreigners to obtain prior approval from the mayor, county governor, or district head when acquiring land in speculative or regulated areas.
On the same day, Kim Eun-hye, Senior Deputy Floor Leader for Policy of the People Power Party, officially proposed discussion of the "Act on Prohibiting Reverse Discrimination Against Nationals in Real Estate" at the ROK National Assembly's "Relay Seminar to Eliminate Reverse Discrimination Against Nationals," suggesting that it be discussed within the bipartisan policy consultative body focused on public livelihood pledges.
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