Please find below the latest trends in real estate transactions and investments in October 2025 for your reference.
 

• New Designation of Areas subject to Adjustment, Speculative Overheating Zones, and Land Transaction Approval Zones: In addition to the previously designated four autonomous districts, the entire 21 autonomous districts in Seoul and 12 areas in Gyeonggi-do were newly designated as areas subject to adjustment, speculative overheating zones, and land transaction approval zones. However, land transaction approvals may be granted for apartments and multi-family houses (excluding quasi-houses such as officetels).

• Strengthening of Regulations on Mortgage Loans: The limit on mortgage loans for houses in the Seoul metropolitan area and regulated areas is limited to KRW 600/400/200 million depending on the market price, and the stress rate on mortgage loans has also been raised from 1.5% to 3%.

• Strengthening of Response System to Establish Real Estate Transaction Order: The Ministry of Land, Infrastructure and Transport (“MOLIT”), the Financial Services Commission (“FSC”), the National Tax Service (“NTS”), and the National Police Agency (“NPA”) will join forces to crack down on illegal real estate transactions. Also, a separate agency to oversee illegal real estate activities will be established under the Prime Minister’s office with mandates to carry out direct investigations.
   

Following the housing market regulations announced on September 7 and the stabilization measures announced this time, close attention to the government’s future policy direction and any subsequent actions would be necessary.
 

• Expansion of the Obligation to Submit a Financing Plan and Evidentiary Materials: Previously, it was not required to submit a financing plan and evidentiary materials for transacting housing in a land transaction approval zone. However, the Proposed Amendment imposes an obligation on applicants to submit such documents, while further specifying the reporting requirements, breaking down loan types and equity fund item into to several specific categories through revision of relevant forms.

• Expansion of Reporting Requirements for Real Estate Transactions: Although taxation for foreigners varies depending on their status of stay and whether they have an address or residence in Korea, these details were not previously required in the reporting process. However, the Proposed Amendment now requires foreign buyers to report their residency status and whether they have an address or place of residence in Korea.

• Expansion of Document Requirements for Practicing Licensed Real Estate Agents: Previously, licensed real estate agents were not required to attach contracts or proof of earnest money when reporting real estate transactions. However, the Proposed Amendment mandates that licensed real estate agents must attach a copy of the contract or a receipt when filing a real estate transaction report.
   

• Expansion of Fund Support to Promote Improvement Projects: In a press release dated October 20, 2025, the MOLIT announced (i) the expansion of loan support by raising the loan limit to up to KRW 6 billion and lowering the interest rate to 2.2% for housing improvement project associations and promotion committees that are struggling to raise funds in the early stages of their projects, and (ii) in order to enhance incentives for supplying rental housing through roadside or autonomous housing improvement projects, the establishment of a special provision that increases the loan limit to up to 60% of the total project cost if between 10% and 20% of the households are designated as rental housing.

• Proposed Amendment to the Enforcement Decree and Enforcement Regulations of the Small-Scale Housing Improvement Act: The MOLIT issued a 40-day pre-announcement (from October 22 to December 1, 2025) of a proposed amendment to the Enforcement Decree and Enforcement Regulations of the Act on Special Cases Concerning the Improvement of Unoccupied Houses and Small-Scale Housing (the “Small-Scale Housing Improvement Act”), which mainly focuses on (i) relaxing the standards for roadside housing improvement projects, and (ii) relaxing the requirements for trust business entities to be designated as small-scale housing improvement project owners.

• Expansion of Incentives for Urban Public Housing Complex Projects: On October 21, 2025, the MOLIT announced its plans for Public Housing Complex Project Season 2. Specifically, the ministry aims to (i) expand the floor area ratio incentives, which has been only allowed in quasi-residential areas, to all residential areas, (ii) improve the feasibility of projects by applying relaxed standards for securing green areas in parks and height of buildings, and (iii) expedite project developments by improving the procedures at each stage of implementation.
   

The improvement of financial support conditions for housing improvement projects through the above series of measures is expected to accelerate the pace of projects by reducing financial costs and improving business feasibility. Furthermore, the revitalization of public housing projects is expected to improve the old residential environment and promote housing supply in urban areas.
 

[Korean Version]