Kim Yoonduk: "Expansion of Regulated Real Estate Zones Is Inevitable"... Additional Measures Forthcoming [2025 Audit]

Expansion of Speculative and Adjustment Zones Likely
Minister Acknowledges Fairness Concerns Over Foreign Home Purchases

On October 13, Kim Yoonduk, Minister of Land, Infrastructure and Transport, stated during the National Assembly audit that "expanding the designation of real estate regulated areas is unavoidable."

During the National Assembly Land, Infrastructure and Transport Committee audit, when Assemblywoman Kim Eunhye of the People Power Party asked whether the government would expand the designation of regulated areas, Minister Kim replied, "I believe it is unavoidable," adding, "We are conducting a detailed review."

The previous day, a high-level policy consultation was held with the participation of the Democratic Party of Korea, the government, and the presidential office, where follow-up measures to address the sharp rise in housing prices in parts of Seoul and Gyeonggi Province were discussed. It was announced that a new real estate policy would be released later this week.

The core measures under consideration include expanding the speculative zones and adjustment target areas designated by the Ministry of Land, Infrastructure and Transport. Currently, only four districts-Gangnam, Seocho, Songpa, and Yongsan-are designated as regulated areas. However, districts that have recently seen clear price increases, such as Seongdong, Gwangjin, Mapo, Dongjak, Gangdong, Yangcheon, and Yeongdeungpo in Seoul, as well as Gwacheon and Bundang District in Seongnam, Gyeonggi Province, are being considered as candidates for additional designation.

Kim Yoonduk, Minister of Land, Infrastructure and Transport, is attending the 2025 National Assembly Land, Infrastructure and Transport Committee audit held at the National Assembly on the 13th, responding to members' questions. Photo by Yonhap News

Regarding additional real estate measures, Minister Kim mentioned, "The details are still under review." However, when asked about possible financial and tax measures such as reducing loan limits, applying the Debt Service Ratio (DSR) to jeonse loans, or increasing property holding taxes, he responded, "These matters do not fall under the jurisdiction of the Ministry of Land, Infrastructure and Transport, so it would not be appropriate for me to comment," and refrained from further remarks.

When asked whether the real estate measures to be announced this week would include additional housing supply policies, he replied, "We are considering a comprehensive package, which may include supply measures as well."

Previously, in his first press conference after taking office last month, Minister Kim emphasized that the Lee Jaemyung administration's real estate policy would not be a series of one-off measures, but instead a comprehensive approach covering the overall market structure. In particular, since the September 7 supply measures were criticized for their limited impact on substantially increasing supply in Seoul, there is growing analysis that the upcoming measures are likely to address these shortcomings.

Meanwhile, regarding the issue of foreigners purchasing domestic housing, Minister Kim stated, "It is difficult to say that the current system is fair." He also acknowledged some loopholes, saying, "That may be the case," in response to concerns that foreigners are not required to submit funding plans, creating regulatory blind spots.

Minister Kim added, "If there are any legal limitations that give preferential treatment to foreigners, we will certainly address them," and further stated, "Since countries like China have fundamentally different systems for land and housing, we will review our regulations in accordance with the principle of reciprocity."

Lee Sangkyung, the First Vice Minister of Land, Infrastructure and Transport, also responded to a question about whether reciprocity is stipulated in the Real Estate Transaction Reporting Act and whether reciprocity could be piloted first with countries like the United States or China, where many nationals own homes in Korea, before expanding to other countries. He said, "We will review whether this can be reflected in the enforcement decree of the Real Estate Transaction Reporting Act."

Regarding the officially announced property price system, Minister Kim said, "I believe the gap between market prices and officially announced prices causes various problems," adding, "A significant portion of the research on reforming the price disclosure system has already been completed."