New rules for foreign home buyers

[Anchor]

The number of foreigners purchasing homes in the metropolitan area is increasing.

In particular, there are significant complaints of reverse discrimination against domestic residents, as they are subject to loan regulations.

Starting next week, only foreigners who plan to actually reside in the country will be allowed to purchase homes in the metropolitan area.

Reporter Lee Ji-eun has the story.

[Report]

In November last year, a citizen from Uzbekistan purchased an apartment in Seocho-gu, Seoul for 7.4 billion won.

This was a record-high transaction, 300 million won higher than the previous month's deal.

This foreigner’s address is in Tashkent, the capital of Uzbekistan.

Transactions for purposes other than actual residence have been blocked since March, following the expansion of land transaction permits in the three districts of Gangnam and Yongsan, leading to a decrease in foreign transactions.

However, the overall volume of foreign transactions in Seoul has actually been on the rise.

Over the past three years, housing purchases by foreigners in the metropolitan area have increased by an average of about 26% each year.

[Ham Young-jin/Head of Real Estate Research Lab, Woori Bank: "Issues related to funding, actual residence, and the burden of taxation for multiple homeowners have been relatively lower hurdles for them (foreigners) compared to domestic residents."]

After the June 27 measures, which limited the housing mortgage loan limit in the metropolitan area to 600 million won, foreigners remain exempt from the regulations, raising concerns about reverse discrimination and speculative buying.

In response, the government has decided to allow foreigners to purchase homes in the metropolitan area only for actual residence purposes.

This applies to all of Seoul, seven districts in Incheon, and 23 cities and counties in Gyeonggi Province.

These areas will be designated as land transaction permit zones. Foreign buyers must obtain prior permission, move in within four months of purchase, and reside in the property for at least two years.

[Kim Se-woong/Real Estate Agent in Gangnam, Seoul: "Foreign residents without a domestic base will likely hesitate. If they do not reside for two years, they will have to pay a penalty, which could be a burden..."]

The Ministry of Land, Infrastructure and Transport plans to maintain the permit system for one year starting from the 26th and extend the period if necessary.

This is KBS News, Lee Ji-eun.