The South Korean government announced an amendment to the 'Real Estate Transaction Reporting Law' that will mandate foreigners buying real estate in the country to disclose their residency status and funding plans, set to take effect on February 10. Previously, foreigners were not required to report their residency status when buying property, but starting from this date, individuals entering into transactions must verify their residency qualifications, such as their address or whether they have lived in the country for over 183 days, a criterion for tax residency under the income tax law.

Additionally, the disclosure requirements for funding sources have been expanded to include funds sourced from abroad. Previously, buyers only needed to report domestic funds, including cash deposits, inheritance amounts, and loans, but now they must also include overseas financing details such as overseas deposits, loans, and even cryptocurrency sales for transactions concluded after February 10. This measure is intended to tighten the scrutiny of illicit fund inflows and unorthodox transactions within the real estate market.

First Vice Minister of Land, Infrastructure, and Transport Kim Itaek stated that the implementation of these regulatory changes will establish a robust framework to monitor illegal financial activities and ensure the integrity of the real estate market. The government emphasizes that it will respond strictly to various forms of illegal real estate activities and will make necessary adjustments to the system to protect genuine property buyers in the market.