Seoul: The government has announced that starting early next year, foreign nationals intending to purchase homes in designated real estate permit zones will need to submit comprehensive financing plans. This requirement was disclosed by the land ministry on Tuesday and aims to increase transparency in foreign real estate transactions.

According to Yonhap News Agency, the revised enforcement decree, which is set to take effect on February 10, has been introduced in response to concerns over foreign buyers acquiring high-value properties using overseas funds that evade domestic lending regulations. This new rule seeks to ensure that all foreign real estate transactions adhere to the same financial scrutiny as those of domestic buyers.

In August, the government identified most of Seoul, significant areas within Gyeonggi Province, and seven districts in Incheon as land transaction permit zones specifically for foreign buyers. In these zones, foreign home purchasers will now be mandated to present a detailed financing plan along with proof of funding sources. Acceptable documentation includes overseas loan agreements, foreign bank statements, and identification of foreign financial institutions involved in the transactions.

The land ministry emphasized that this measure is intended to curb illegal activities such as tax evasion and unauthorized leasing, while also promoting fairness in real estate taxation and oversight across the country.