South Korea Unveils Measures to Stabilize Housing Market and Boost Home Supply
South Korea's Finance Minister, Koo Yun-cheol, announces new measures to stabilize the property market and increase the supply of homes. The government aims to address rising national debt while investing in future economic growth.
South KoreaProperty MarketHousingNational DebtForeign OwnershipReal EstateSep 07, 2025
Koo emphasized the government's commitment to addressing the housing market during an interview with KBS, stating, “The government's top priority is stabilising the housing market and ensuring the residential stability of the people.” However, he did not disclose specific details of the planned measures.
Late last month, the government proposed a budget of 728 trillion won (US$522 billion) for the upcoming year. This budget aims to significantly boost spending on research and development and artificial intelligence, driving future economic growth. The proposed budget represents an 8.1 percent increase from the current year's budget.
South Korea's national debt is projected to rise to over 51.6 percent of its gross domestic product (GDP) in 2026, up from 49.1 percent this year, according to the Ministry of Economy and Finance. Despite these financial challenges, the government remains committed to investing in the economy to foster long-term growth.
Meanwhile, the number of homes in South Korea owned by foreigners has increased by more than 20 percent under the previous administration, despite the former government's pledge to curb speculative purchases by foreign nationals. Data from the state-run Korea Real Estate Board, submitted to the office of Rep. Park Yong-gap of the ruling Democratic Party, shows that the number of foreign home ownership reached 99,830 as of the end of 2024, up from 82,666 two years earlier.
The 2024 tally marks a 20.7 percent increase over the two-year period under the previous Yoon Suk Yeol administration. By nationality, Chinese nationals accounted for the largest share and the biggest increase, rising 24.6 percent to 59,722, followed by Americans, whose ownership increased by 2,145 to 20,036. Vietnamese ownerships rose by 647 to 1,592, while Canadian home registrations increased by 482 to 5,341.
The number of new home purchases worth over 1.2 billion won (US$862,700) by foreigners was recorded at 546 during the period. This rise in foreign home ownership highlights the need for the government to balance economic growth with measures to ensure housing affordability for local residents.
Frequently Asked Questions
What is the main goal of the new measures announced by the South Korean government?
The main goal of the new measures is to stabilize the property market and ensure residential stability for the people.
How much has the number of homes owned by foreigners increased in South Korea?
The number of homes owned by foreigners in South Korea has increased by more than 20 percent over the two-year period under the previous administration.
What is the projected national debt of South Korea in 2026?
South Korea's national debt is projected to climb to over 51.6 percent of its gross domestic product (GDP) in 2026.
What is the proposed budget for South Korea for the upcoming year?
The proposed budget for South Korea for the upcoming year is 728 trillion won (US$522 billion).
Which nationality has the largest share of foreign home ownership in South Korea?
Chinese nationals have the largest share of foreign home ownership in South Korea, accounting for 59,722 homes.
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