Seoul Cracks Down: Foreign Nationals Face Penalties for Real Estate Violations!

Seoul Cracks Down on Foreign Real Estate Permit Violations

The Seoul Metropolitan Government announced Monday that it has taken administrative action against three foreign nationals for misusing real estate acquired in land transaction permit zones.

These violations came to light in late June as part of a sweeping inspection of 8,000 properties conducted by city officials to ensure compliance with land use regulations.

The investigation specifically targeted 99 foreign acquisitions of domestic real estate and unregistered brokerage activities, areas where authorities had previously uncovered permit violations.

In two cases, foreign buyers obtained permits by claiming they would establish businesses on the properties, but inspections revealed no commercial activity. The third case involved a residential permit holder who failed to provide proof of occupancy.

For residential permits, city inspectors conducted on-site visits, checking tenant records, mailboxes, and package deliveries to verify occupancy. When these methods proved insufficient, officials left notices and scheduled follow-up inspections.

Violators receive a corrective order and have three months to rectify the situation. Failure to comply can result in fines and criminal charges.

The city is also cracking down on unlicensed real estate brokers.

One such case involves a user known as “Gangnam Unnie,” who allegedly solicits buyers on social media without a license and collaborates with licensed brokers to receive commissions. This case has been referred to the city’s Special Judicial Police Bureau for Public Safety.

Seoul has expanded its joint inspection efforts with district governments and the Ministry of Land, Infrastructure and Transport to cover all 25 districts, conducting multiple weekly inspections targeting unlicensed brokers.

The city is scrutinizing land-use compliance, funding sources, and other potential irregularities as part of a proactive strategy to curb speculative transactions and market manipulation.

“We will continue to take decisive action against market-distorting behavior, including permit violations and illegal brokerage activities, without exception,” said Cho Nam-joon, head of Seoul’s Urban Space Policy Bureau.