Gov't to tighten real estate purchase rules for foreigners to curb speculative deals

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foreigners-property transaction

Gov't to tighten real estate purchase rules for foreigners to curb speculative deals

SEOUL, Feb. 9 (Yonhap) -- The government will begin enforcing tighter real estate transaction rules for foreigners this week to prevent speculative property purchases involving suspicious overseas funds, the land ministry said Monday.

Under a revision to the enforcement rules of the Real Estate Transaction Reporting Act, foreign nationals who sign property purchase contracts starting Tuesday will be required to disclose their visa status and whether they qualify as legal residents when filing transaction reports to local authorities.

Inclusion of information regarding overseas bank deposits, foreign loans and offshore financial institutions will be also be newly required. Currently, only local deposits and financial institutions are required for foreigners when reporting home purchases.

Proceeds from stock and bond sales, as well as those from cryptocurrencies, will also be newly required when used as part of the funds to purchase a home here, according to the ministry.

The measures follow a government probe last year that identified 416 suspected cases of illegal real estate transactions involving foreign buyers, which have been referred to customs, immigration and police authorities.

The ministry said it plans to launch joint inspections with local governments starting in March and additional investigations into abnormal transactions and illegal overseas fund inflows beginning in August.

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