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About 2,400 foreign rental businesses... Prevent gap investments and illegal rentals

2021.10.26 13:24
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기사한줄요약

When applying for a foreigner or rental business, must indicate your status of residence and submit supporting documents.

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The government has decided to significantly strengthen management to prevent foreigners from engaging in expedient or illegal real estate rental business in Korea.

The Ministry of Land, Infrastructure and Transport announced on October 24 that the amendment to the “Enforcement Rules of the Special Act on Private Rental Housing” would be announced by December 1.

Currently, there is no procedure to check the status of residence when a foreigner registers as a housing rental business, but the amendment requires that the alien registration number and nationality, as well as the status and period of stay, should be written in the report submitted at the time of registration. A certificate of alien registration to prove this must also be submitted.

The Ministry of Land, Infrastructure and Transport said, “Even if a foreigner enters the country with a trade management visa, etc. and engages in a real estate rental business using expedient methods, it is difficult to manage it now”, it explained.

In fact, in June, a 60-year-old man from Southwest Asia, A (60), was caught by the Immigration Special Investigation Unit of the Seoul Immigration Office and sent to the prosecution on charges of real estate speculation after entering Korea on a trade management (D-9) visa.

A was investigated for violating the Immigration Control Act by engaging in activities outside the scope of the visa permit, such as purchasing 7 real estate properties such as villa and officetels in the metropolitan area and renting them for undue profits.

In May, a month earlier, two foreign women, including A (23), who came to Korea with a study abroad (D-2) visa, bought a villa in the metropolitan area with 'gap investment' (investment to buy with rent). She was sent on charges of earning unfair profits by renting to foreign students.

Foreigners with a student visa cannot engage in profit-making activities in this way.

According to the government audit data of the Ministry of Land, Infrastructure and Transport, as of June last year, a total of 2,394 foreign rental business operators were registered in Korea.

By nationality, 885 people were Chinese, accounting for 37.0% of the total, followed by Americans with 702 (29.3%), Canadians with 269 (11.2%), Taiwanese with 179 (7.5%), and Australians with 84 (3.5%) in order.

A total of 6,650 rental houses were registered by foreign rental business operators, and an average of 2.8 houses per person were registered and operated as rental housing.

According to the Korea Real Estate Agency, the number of buildings (including single, multi-family, apartment, and commercial officetel) traded by foreigners in Korea in 2020 was 21,48, an increase of 18.5% from the previous year, a record high.

Reporter Song Haseong

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영국말고미국
2021. 1. 17 13:00
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영국말고미국
2021. 1. 17 13:00
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod
영국말고미국
2021. 1. 17 13:00
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod

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