"180 Billion Won Paid in Cash for Ultra-Luxury Seoul Apartment" Korea Becomes a Real Estate Shopping Paradise for Foreigners [Real Estate AtoZ]

Foreign Homeownership Surges by 17,000 in Two Years
Nearly 70% of the Increase Attributed to Chinese Buyers
Prime Locations Targeted: Hannam-dong, Banpo, Yeouido, Oksu, Bundang
Cash-rich Buyers Acquire Properties Like "Janghak Park Hannam"

Although the Yoon Suk-yeol administration pledged to prevent foreign speculation in the housing market as a key national policy at its launch, it has been revealed that the number of homes owned by foreigners in Korea has actually increased significantly. Some foreigners have even raised suspicions of speculative transactions by purchasing ultra-high-priced apartments in central Seoul entirely with cash, amounting to tens of billions of won.

Assemblyman Yonggap Park. Office of Assemblyman Yonggap Park.

According to an analysis of data from the Korea Real Estate Board by Assemblyman Yonggap Park of the Democratic Party of Korea, who serves on the National Assembly's Land, Infrastructure and Transport Committee, the number of foreign home owners rose from 82,666 in the second half of 2022 to 99,839 in the second half of 2024, an increase of 17,173. Notably, Chinese nationals accounted for 11,810 of this increase, making up nearly 70% of the total growth.

Furthermore, a comprehensive review of 2,899 housing fund procurement plans submitted by foreigners since the launch of the Yoon Suk-yeol administration found that 546 transactions (18.8%) involved high-priced homes valued at 1.2 billion won or more. Among these, there were 89 transactions in the 3 billion to 5 billion won range, 22 transactions in the 5 billion to 10 billion won range, and 5 transactions exceeding 10 billion won.

High-priced home purchases in Seoul were concentrated in the following areas: Hannam-dong in Yongsan-gu (28 transactions), Banpo-dong in Seocho-gu and Yeouido-dong in Yeongdeungpo-gu (19 transactions each), Oksu-dong in Seongdong-gu (16 transactions), Seocho-dong in Seocho-gu (15 transactions), Bundang-gu in Seongnam, Gyeonggi Province (13 transactions), and Apgujeong-dong in Gangnam-gu and Yeonnam-dong in Mapo-gu (12 transactions each).

The most expensive transaction was in August 2023, when a Malaysian national, referred to as Mr. A, purchased 'Janghak Park Hannam' in Hannam-dong, Seoul, for 18 billion won, paying the entire amount in cash. Following this, an American national, Mr. B, bought 'Hannam The Hill' for 12 billion won, with 6.3 billion won paid in cash and 5.6 billion won financed through a bank loan. A British national, Mr. C, purchased 'Hannam The Hill' for 11 billion won entirely in cash, while another American national, Mr. D, acquired 'Lucid House' for 10.8 billion won using a combination of cash, loans, and company support funds. A Chinese national, Mr. E, also bought 'Gemstone Hills' in Seongbuk-dong for 10.6 billion won in a single cash payment.

Assemblyman Yonggap Park stated, "Although the government promised to prevent foreign speculation in the housing market, the number of homes owned by foreigners has ultimately increased substantially." He pointed out, "Canada and Australia are strengthening regulations by either completely banning foreign home purchases or imposing high taxes." He went on to emphasize, "Korea must at least introduce institutional measures such as stricter verification of funding sources, higher property holding taxes, and restrictions on foreign transactions. If left unchecked, foreign capital could further destabilize the housing market."