On-site Inspections of Foreign-Owned Properties Reveal Three Compliance Orders Issued
Reports Received on Recruitment of Buyers Without Certified Realtor License
The Seoul Metropolitan Government has issued compliance orders for three cases in which foreigners failed to use real estate in land transaction permit zones for the purposes approved. The city also detected cases where buyers were recruited through real estate communities without a certified realtor license and referred the matter to the municipal special judicial police for investigation.
The number of districts in Seoul where the average apartment sale price per 3.3㎡ exceeds 50 million won has more than doubled in one year. As of November last year, only Gangnam-gu, Seocho-gu, and Songpa-gu among the 25 districts of Seoul had average apartment sale prices exceeding 50 million won per 3.3㎡. However, last month, Yongsan-gu, Seongdong-gu, Mapo-gu, and Gwangjin-gu were added, bringing the total to seven districts. The photo shows the view of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@
On July 21, the Seoul Metropolitan Government announced that it had formed a "Rapid Response Team for Illegal Real Estate Activities" to inspect whether foreigners acquiring domestic real estate, unregistered brokerage activities, and other uses of land within land transaction permit zones were in compliance with their approved purposes.
The city conducted on-site inspections of 99 properties owned by foreigners, selected from a total of approximately 8,000 cases subject to the obligation to use real estate in accordance with the original permit purpose after acquisition through a land transaction permit.
As a result of these on-site inspections of real estate acquired by foreigners in land transaction permit zones, three cases were found where the properties were not being used for the purposes approved at the time of acquisition.
Compliance orders were issued for two properties that had been approved for "self-management" purposes such as interior business or office use but showed no actual business activity, and one property approved for residential use where the required documents had not been submitted.
For properties approved for self-management purposes, actual business activity was considered evidence of appropriate use. For residential purposes, on-site confirmation of residence was conducted through verification of the owner's occupancy, resident registration, mailboxes, and parcel boxes.
If a compliance order is issued due to failure to fulfill the obligation to use the property in line with the land transaction permit purpose, corrective action must be taken within three months. If not, an enforcement fine (imposed once per year) may be levied, and the case may be referred for prosecution.
On the 27th, apartment prices in Mapo and Seongdong districts of Seoul rose at the largest rate since related statistics began to be published in 2013. It is expected that the upward trend in Seoul apartment prices will continue for the time being due to the expectation that prices will rise further. The photo shows a real transaction notice at a real estate agency in Mapo, Seoul. 2025.06.27 Photo by Dongju Yoon
Additionally, the Seoul Metropolitan Government received reports of suspected unregistered real estate brokerage activities on real estate communities, conducted a separate investigation, and requested an official investigation by the Seoul Municipal Special Judicial Police Bureau.
According to the reports, an individual using the nickname "Gangnam Unni" was found to have recruited buyers via SNS on a real estate community without a certified realtor license and allegedly received compensation in connection with a specific certified realtor.
Starting this month, the city, together with local districts and the Ministry of Land, Infrastructure and Transport, has been conducting joint investigations into abnormal real estate transactions and post-transaction land use, increasing the frequency to at least three times per week to enhance effectiveness. The joint investigations check for compliance with land transaction permit obligations and review sources of funding.
Namjun Cho, Director of Urban Space at the Seoul Metropolitan Government, stated, "Going forward, Seoul will continue to respond firmly and without exception to market-disrupting activities by investigating cases of non-compliance with original land transaction permit purposes and inspecting illegal brokerage activities. We will maintain on-site inspections and administrative guidance to foster a trustworthy real estate market culture."
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