Foreign nationals are increasingly entering the housing market, and their growing presence is beginning to raise questions about the future of housing access, investment behavior and regulatory oversight.
Over the past three years, the number of homes owned by foreign buyers has steadily increased, rising by 4 to 6 percent every six months. Recently, the trend reached a new milestone.
As of late December, foreign nationals owned more than 100,000 housing units in South Korea — the first time the figure has crossed that threshold since the government began tracking it in 2022, according to data from the Ministry of Land, Infrastructure and Transport.
Though these properties comprise only about 0.5 percent of South Korea’s roughly 20 million housing units, the uptick has prompted questions about whether some purchases are being made for investment purposes rather than for residential use.
The capital region is by far the most popular area for foreign buyers. Nearly three-quarters of all foreign-owned homes are located in the greater Seoul area, with more than 23,000 properties situated within the city itself.
Most foreign homeowners — about 93 percent — own just one home. However, a small number hold multiple properties, including 461 individuals who own five or more units, which some see as a potential sign of investment activity.
As the trend continues, policymakers and analysts are watching closely, not because the numbers are overwhelming, but because of the broader implications — from housing availability to the effectiveness of existing oversight mechanisms.
Some argue that foreign nationals may have an easier time acquiring real estate in South Korea by securing financing from lenders in their home countries, a strategy that could allow them to bypass Korea’s stringent loan regulations.
Others, however, argue that the practice is likely limited in scope, as obtaining loans for overseas property purchases can be difficult.
Foreign nationals are subject to the same borrowing limits at Korean banks as local citizens, including regulations based on loan-to-value and debt-to-income ratios. Still, completely closing off regulatory loopholes remains a challenge. While Korea imposes heavier taxes on multi-homeowners, enforcing these rules among foreign nationals can be challenging, particularly in identifying household members living abroad.
Regulatory efforts to manage demand from foreign homebuyers in Korea continue to gain traction, with some measures targeting Chinese nationals — the largest group of foreign property owners in the country.
Other initiatives have included calls for higher acquisition taxes and stricter property-related rules for non-Korean buyers. However, none of these measures have passed the legislative threshold.
Legal experts argue that regulating property purchases by nationality could violate the constitutional principle of reciprocity. Despite the legal challenges, authorities are continuing their efforts to monitor and respond to growing concerns.
