2023-10-03 09:40:00
The rate of real estate purchases by foreigners appears to be increasing over the past three years. There was also a slight increase in the number of incidents where rental deposits were not returned from foreign owners.
A view of downtown apartments from Namsan Mountain in Seoul. /News 1
According to data submitted by the Ministry of Land, Infrastructure and Transport by Hong Ki-won, a member of the Land, Infrastructure and Transport Committee of the National Assembly on the 3rd, foreigners accounted for 0.9% of all real estate transactions (purchases) in Korea from 2018 to 2020, but recently increased to 3%. There was an increasing trend over the years.
In 2021, it accounted for 21,033 cases out of a total of 2,114,309 cases, or 1%, and in 2022, it accounted for 1.2%, or 16,012 cases, out of a total of 1,287,796 cases. As of July of this year, it accounted for 9,251 cases out of a total of 670,696 cases, or 1.4%. .
In particular, the increase was large in Gyeonggi and Incheon. The economy increased from 1.2% in 2021 to 1.6% in 2022 and 2.0% this year. Incheon showed growth rates of 2.1%, 2.2%, and 2.8%, respectively, over the same period.
The number of rental homes owned by foreigners increased from 2018 to 2020, but began to decline from 2021. The number of rental homes for foreigners steadily increased to 5,792 households in 2018, 6,260 households in 2019, and 6,436 households in 2020. Then, it showed a decline to 4,216 households in 2021 and 3,673 cases in 2022.
According to the ‘Status of rental deposit accidents occurring from foreign landlords’ that Representative Hong received from the Housing and Urban Guarantee Corporation (HUG), it was found that the number of cases increased from 3 in 2021 and 3 in 2022 to 11 as of July this year. The amount of damage during the same period was 5. It was 100 million won, 400 million won, and 2.3 billion won.
HUG is in the process of recovering the rental deposit following subrogation in the event of a return of the rental deposit by a foreign landlord. We encourage landlords to make voluntary repayments following subrogation, but if debt repayment is delayed, we proceed with legal procedures to recover claims, such as lawsuits for deposit return and compulsory execution.
Representative Hong Ki-won said, “As foreign real estate transactions are increasing, the number of foreign landlords is also increasing,” and added, “We need to break down foreign real estate statistics to clearly understand the status of housing transactions and prepare protective measures to prevent damage to our citizens’ property, such as guarantee accidents.”
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