ENFORCEMENT DECREE OF THE ACT ON REPORT ON REAL ESTATE TRANSACTIONS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Act on Report on Real Estate Transactions and matters necessary for the enforcement thereof.

Article 2(International organizations equivalent to foreigners) #

"International organization prescribed by Presidential Decree" in subparagraph 4g of Article 2 of the Act on Report on Real Estate Transactions (hereinafter referred to as the "Act") means any of the following organizations:

1. The United Nations and its subsidiary organs and specialized agencies;

2. Intergovernmental organizations;

3. Quasi-intergovernmental organizations;

4. Non-governmental international organizations.

Article 3(Reporting on real estate transactions) #

(1) "Matters prescribed by Presidential Decree, including the real transaction price" in the main clause, with the exception of the subparagraphs, of Article 3(1) of the Act means the matters as specified in Appendix 1. <Amended on Oct. 27, 2020>

(2) "Person prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 3(1) of the Act means the following institutions:

1. Public institutions under the Act on the Management of Public Institutions;

2. A local government-directly operated enterprise, local government-invested public corporation, or local public agency under the Local Public Enterprises Act.

(3) "Statutes prescribed by Presidential Decree, such as the Housing Site Development Promotion Act and the Housing Act" in Article 3(1)2 of the Act means the following statutes: <Amended on Feb. 9, 2018>

1. The Act on Sale of Building Units;

2. The Special Act on Public Housing;

3. The Urban Development Act;

4. The Act on the Improvement of Urban Areas and Residential Environments;

4-2. The Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;

5. The Industrial Sites and Development Act;

6. The Housing Act;

7. The Housing Site Development Promotion Act.

(4) The report-receiving authority under Article 3(1) of the Act (hereinafter referred to as "report-receiving authority") shall submit the details of a report on the acquisition of real estate, etc. filed by a foreigner, etc. (including submission by electronic documents defined in subparagraph 1 of Article 2 of the Digital Signature Act) in accordance with that Article to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor within 1 month from the end of each quarter; provided, a Special Self-Governing City Mayor shall directly submit the details thereof to the Minister of Land, Infrastructure and Transport.

(5) Upon receipt of the details of a report in accordance with the main clause of paragraph (4), the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor shall submit the details thereof to the Minister of Land, Infrastructure and Transport within 1 month from the date of receipt of the report.

Article 4(Establishment and operation of system for verifying real estate transaction prices) #

The Minister of Land, Infrastructure and Transport may request the report-receiving authority to submit data on the following matters in order to establish and operate a system for verifying real estate transaction prices under Article 5(1) of the Act (hereinafter referred to as "verification system"): <Amended on May 31, 2021>

1. Results of verification of appropriateness of reported prices under Article 5(2) of the Act (including cases applied mutatis mutandis in Article 6-4(2) of the Act);

2. Results of investigation of reported matters under Article 6 of the Act (including cases applied mutatis mutandis in Article 6-4(3) of the Act);

3. Other matters necessary for establishment and operation of the verification system.

Article 4-2(Request for provision of data) #

"Materials prescribed by Presidential Decree, such as materials on national and local taxes and materials on income and property" in the former part of Article 6(4) of the Act means materials under Appendix 2. <Amended on Oct. 27, 2020>

[This Article Added on Feb. 18, 2020]

Article 4-3(Reporting on housing lease contracts) #

(1) "Housing lease contract ...<omitted>... in an amount exceeding the amount prescribed by Presidential Decree" in the main clause of Article 6-2(1) of the Act means a housing lease contract in which a deposit exceeds 60 million won or a monthly rent exceeds 300,000 won (excluding contracts that extend only the lease period without increasing or decreasing the deposit or rent in the case of contract renewal).

(2) "Areas prescribed by Presidential Decree" in Article 6-2(2) of the Act means a Special Self-Governing City, a Special Self-Governing Province, or a Si/Gun (limited to a Gun within the jurisdiction of a Metropolitan City or Gyeonggi-Do), or a Gu (referring to an autonomous Gu) in Article 6-2(2) of the Act.

[This Article Added on May 31, 2021]

Article 5(Reporting on acquisition of real estate by foreigners) #

(1) Foreigners, etc. who intend to report the acquisition or continuous possession of real estate, etc. in accordance with Article 8 of the Act shall submit a written report to the reporting-receiving authority, accompanied by documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(2) "Cause other than contracts prescribed by Presidential Decree" in Article 8(2) of the Act means any of the following grounds: <Amended on Feb. 18, 2020>

1. Exercise of repurchase rights under the Act on Acquisition of and Compensation for Land for Public Works Projects or other statutes;

2. Final and conclusive judgment of the court;

3. Merger of corporations;

4. Construction, extension, alteration, or reconstruction of buildings.

(3) The report-receiving authority shall submit the details of a report under Article 8 of the Act (including submission by electronic documents defined in subparagraph 1 of Article 2 of the Digital Signature Act) to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor within 1 month from the end of each quarter; provided, a Special Self-Governing City Mayor shall directly submit such details to the Minister of Land, Infrastructure and Transport.

(4) Upon receipt of the details of a report in accordance with the main clause of paragraph (3), the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor shall submit the details thereof to the Minister of Land, Infrastructure and Transport within 1 month from the date of receipt of the report.

Article 6(Permission for land transactions by foreigners) #

(1) Foreigners, etc. who intend to obtain permission for the acquisition of land in accordance with Article 9(1) of the Act shall submit an application to the reporting-receiving authority, accompanied by documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(2) "Area ...<omitted>... prescribed by Presidential Decree" in Article 9(1)1 of the Act means any of the following areas necessary for national defense purposes, which are publicly notified by the Minister of Land, Infrastructure and Transport after consultation with the heads of relevant central administrative agencies and deliberation by the Central Urban Planning Committee under Article 106 of the National Land Planning and Utilization Act, upon request by the Minister of National Defense or the Director of the National Intelligence Service: <Amended on Oct. 4, 2023>

1. Islands;

2. Posts under the Act on National Defense and Military Installations Projects and their neighboring areas;

3. Important national facilities under the United Defense Act and their neighboring areas.

(3) Upon receipt of an application under paragraph (1), the report-receiving authority shall issue a disposition for permission or non-permission within the period classified as follows from the date of receipt of the application; provided, where it is impossible to issue a disposition for permission or non-permission within the period under subparagraph 1 due to unavoidable reasons, it can extend the period by up to 30 days and where it extends the period, it shall notify the applicant of the grounds for extension and the expected processing date without delay: <Amended on Oct. 4, 2023>

1. In cases of zones and areas under Article 9(1)1 of the Act: 30 days;

2. In cases of zones and areas other than those under subparagraph 1: 15 days.

(4) Where the report-receiving authority intends to consult with the head of a relevant administrative agency, such as the Minister of National Defense or the Director of the National Intelligence Service, to determine whether to permit the acquisition of land in a zone or area under Article 9(1)1 of the Act in accordance with paragraph (2) of that Article, it shall send documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport, such as an application under paragraph (1), to the head of the relevant administrative agency. <Added on Oct. 4, 2023>

(5) The report-receiving authority shall submit the details of permission under Article 9 of the Act (including submission by electronic documents defined in subparagraph 1 of Article 2 of the Digital Signature Act) to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor within 1 month from the end of each quarter; provided, a Special Self-Governing City Mayor shall directly submit such details to the Minister of Land, Infrastructure and Transport. <Amended on Oct. 4, 2023>

(6) Upon receipt of the details of permission in accordance with the main clause of paragraph (5), the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor shall submit the details thereof to the Minister of Land, Infrastructure and Transport within 1 month from the date of receipt of the report. <Amended on Oct. 4, 2023>

(7) Except as provided in paragraphs (1) through (6), matters necessary for procedures, methods, etc. for granting permission to acquire land by foreigners, etc. shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Added on Oct. 4, 2023>

Article 7(Designation of land transaction permit zones) #

(1) "Area prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 10(1) of the Act means any of the following areas: <Amended on Oct. 4, 2023>

1. An area where a land utilization plan, such as a metropolitan plan, an urban or Gun master plan, or an urban or Gun management plan under the National Land Planning and Utilization Act, is newly formulated or modified;

2. An area where restrictions on activities on land use are relaxed or released due to enactment, amendment, or repeal of statutes or regulations or the public notice or public announcement thereof;

3. An area where a development project under statutes or regulations is in progress or is planned, and its neighboring areas;

4. Other areas where the Minister of Land, Infrastructure and Transport, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") recognizes that there is a risk of speculation or areas where the head of a relevant administrative agency recognizes that there is a special risk of speculation and requests the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor.

(2) The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may designate areas subject to permission by specifying a person subject to permission and the use and land category subject to permission, respectively, in accordance with the following classifications in accordance with the latter part, with the exception of the subparagraphs, of Article 10(1) of the Act: <Added on Oct. 4, 2023>

1. Person subject to permission: A person who is deemed likely to be speculative in consideration of the fluctuation rate of land prices, transaction volume, etc. in an area under paragraph (1)4;

2. Use subject to permission: Use of any of the following lands deemed likely to be speculative in the areas under paragraph (1)4:

a. Vacant lots;

b. A site used for the purpose of a building falling under any subparagraph of Article 2(2) of the Building Act;

3. Land category subject to permission: Land category under the Act on the Establishment and Management of Spatial Data, which is deemed likely to be speculative in the areas under paragraph (1)4.

(3) "Case of an area where speculative land transactions are prevalent or land price rises rapidly, or an area prescribed by Presidential Decree as having such possibility" in the proviso of Article 10(1)2 of the Act means cases where all of the following requirements are satisfied: <Amended on Oct. 4, 2023>

1. Where the State or a public institution under the Act on the Management of Public Institutions implements a development project under relevant statutes or regulations;

2. Where the land price fluctuation rate, etc. of the relevant area rapidly rises or is likely to rise compared to the neighboring areas or the nationwide average.

(4) "Matters prescribed by Presidential Decree, such as the person subject to permission, the use of the area subject to permission, and the land category" in Article 10(3) of the Act means the following matters: <Amended on Oct. 4, 2023>

1. The designation period of an area subject to permission of land transaction contract under Article 10(1) of the Act (hereinafter referred to as "area subject to permission");

1-2. The person subject to permission, the use of the area subject to permission, and the land category;

2. The location, lot number, land category, area, and special-purpose area (referring to the special-purpose area under Article 36 of the National Land Planning and Utilization Act; hereinafter the same shall apply) of land in an area subject to permission;

3. The topographic map of 1/50,000 or 1/25,000 in scale for an area subject to permission;

4. The area of land subject to exemption from permission under Article 9(1).

Article 8(Procedures for permission for land transaction contracts) #

(1) A person who intends to obtain permission for a land transaction contract under the former part of Article 11(1) of the Act (hereinafter referred to as "land transaction contract") shall jointly file an application stating the following matters with a permitting agency (referring to the permitting authority under Article 11(1) of the Act; hereinafter the same shall apply), accompanied by documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport:

1. The name and address of the party (in cases of a corporation, the name and location of the corporation and the name and address of its representative);

2. The lot number, land category, area, current status of use, and current status of establishment of rights of the land;

3. Matters regarding buildings, structures, standing timber, etc. which are fixtures on the land;

4. The types of rights to be transferred or established;

5. The estimated amount of the contract;

6. The land use plan;

7. The financing plan necessary for the acquisition of the land (referring to the transfer or establishment of ownership, superficies, or rights to acquire ownership or superficies over the land; hereinafter the same shall apply).

(2) A person who intends to obtain permission to modify a land transaction contract under the latter part of Article 11(1) of the Act shall jointly file an application stating the following matters with the permitting agency, accompanied by documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport:

1. Matters under paragraph (1)1 through 3;

2. The permit number of a land transaction contract;

3. Details of modification;

4. Reasons of modification.

(3) Upon receipt of an application under paragraph (1) or (2), the permitting agency shall conduct a necessary investigation without delay and shall grant permission, permission for modification, or disposition of non-permission within 15 days from the date of receipt of the application.

Article 9(Area of land subject to exemption from permission for land transaction contract) #

(1) "Area for each use prescribed by Presidential Decree" in Article 11(2)1 of the Act means the area classified as follows; provided, where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor deems that it is inappropriate to use the following area as at the time he or she designates an area subject to permission, in consideration of the transaction status, etc. in the relevant area, and he or she makes a public announcement by separately determining the area subject to permission within the scope of not less than 10 percent but not more than 300 percent of the relevant standard area, such shall apply thereto: <Amended on Feb. 28, 2022; Oct. 4, 2023>

1. An urban area under Article 36(1)1 of the National Land Planning and Utilization Act (hereinafter referred to as "urban area"): The area classified as follows by detailed special-purpose area:

a. Residential areas: 60 square meters;

b. Commercial areas: 150 square meters;

c. Industrial areas: 150 square meters;

d. Green areas: 200 square meters;

e. Zones without any designation of special-purpose area specified in items a through d: 60 square meters.

2. Areas other than urban areas: 250 square meters; provided, in cases of farmland (referring to farmland defined in subparagraph 1 of Article 2 of the Farmland Act; hereinafter the same shall apply), it shall be 500 square meters and in cases forest land, 1,000 square meters, respectively.

(2) In calculating the area under paragraph (1), where a land transaction contract is concluded for a part of all land within 1 year from the date on which the land transaction contract is concluded for the purpose of using all land, it shall be deemed a transaction for all land.

(3) Where land exceeding the area under paragraph (1) as at the time of designation of the area subject to permission becomes smaller than the area under paragraph (1) after the designation of the area subject to permission due to division (excluding division for public purposes, such as the implementation of an urban/Gun planning project under the National Land Planning and Utilization Act), the first land transaction contract for the relevant divided land after division shall be deemed a land transaction contract exceeding the area under paragraph (1). The same shall also apply where the relevant land is traded as a co-ownership after the designation of the area subject to permission.

Article 10(Criteria for permission) #

(1) "Persons prescribed by Presidential Decree" in subparagraph 1c of Article 12 of the Act means any of the following persons:

1. Any of the following persons (hereinafter referred to as "farmers, etc.") who intends to acquire land located in the Special Metropolitan City, a Metropolitan City (excluding a Gun located within the jurisdiction of a Metropolitan City), a Special Self-Governing City, a Special Self-Governing Province, or a Si/Gun (including a Gun located within the jurisdiction of a Metropolitan City) in which he or she resides:

a. Farmers under subparagraph 2 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry;

b. Fishers under subparagraph 3 of Article 3 of the Framework Act on Fisheries and Fishing Villages Development;

c. Forest managers defined in subparagraph 2 of Article 2 of the Forestry and Mountain Villages Development Promotion Act;

2. A farmer, etc. who intends to acquire land located within 30 kilometers from his or her residential address;

3. Any of the following farmers, etc. who intend to acquire farmland [limited to farmland with the previous value of land (referring to the value based on the officially assessed individual land price under the Act on the Public Announcement of Real Estate Values; hereinafter the same shall apply) not exceeding the previous value of land, except where the head of an administrative agency arranges the acquisition of alternative farmland by determining specific objects, as prescribed by relevant statutes or regulations] located within 80 kilometers from his or her address to replace the farmland transferred through consultation or expropriated within 3 years from the date of the transfer through consultation or expropriation.

a. A person who has transferred farmland through consultation or whose farmland has been subjected to expropriation for public works (limited to actual cultivators) in accordance with the Act on Acquisition of and Compensation for Land for Public Works Projects or other statutes or regulations;

b. A person who has been cultivating farmland falling under item a by leasing or leasing free of charge such farmland and has received compensation for losses incurred in farming under the Act on Acquisition of and Compensation for Land for Public Works Projects;

4. A person who does not fall under subparagraphs 1 through 3 and meets the requirements prescribed by Decree of the Ministry of Land, Infrastructure and Transport with regard to his or her place of residence, period of residence, etc.

(2) "Where ...<omitted>... use land for a purpose prescribed by Presidential Decree" in subparagraph 1g of Article 12 of the Act means where a person residing in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Special Self-Governing Province, or a Si/Gun to which an area subject to permission belongs falls under any of the following cases: <Amended on Feb. 18, 2020>

1. Where a person who has transferred land other than farmland through consultation or whose land has been subjected to expropriation for public works in accordance with the Act on Acquisition of and Compensation for Land for Public Works Projects or other statutes or regulations intends to acquire land replacing the land transferred through consultation or expropriated (limited to land not exceeding the previous land price) within 3 years from the date of transfer through consultation or expropriation thereof within the relevant area subject to permission;

2. Where a person intends to acquire land prescribed by Decree of the Ministry of Land, Infrastructure and Transport for the purpose of preserving the current state of land, the development and utilization of which is restricted or prohibited in accordance with relevant statutes or regulations;

3. Where a person entitled to engage in rental business in accordance with relevant statutes or regulations, such as a rental business entity defined in subparagraph 7 of Article 2 of the Special Act on Private Rental Housing, intends to acquire a building and land appurtenant thereto for the purpose of rental business.

Article 11(Special cases regarding land transaction contracts of the state) #

(1) "Public institutions or organizations prescribed by Presidential Decree" in Article 14(1) of the Act means the following institution or organization: <Amended on Apr. 2, 2019; Feb. 17, 2022>

1. The Korea Agro-Fisheries and Food Trade Corporation under the Korea Agro-Fisheries and Food Trade Corporation Act;

2. The Korea Coal Corporation under the Korea Coal Corporation Act;

3. The Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act;

4. The Korea Tourism Organization under the Korea Tourism Organization Act;

5. The Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act;

6. The Korea Expressway Corporation under the Korea Expressway Corporation Act;

7. The Korea National Oil Corporation under the Korea National Oil Corporation Act;

8. The Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

9. The Korea Electric Power Corporation under the Korea Electric Power Corporation Act;

10. The Korea Railroad Corporation under the Korea Railroad Corporation Act;

11. Forestry cooperatives and the National Forestry Cooperative Federation under Forestry Cooperatives Act;

12. Agricultural cooperatives, livestock cooperatives, and the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act;

13. Fisheries cooperatives and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;

14. The Korea SMEs and Startups Agency under the Small and Medium Enterprises Promotion Act;

15. The Bank of Korea under the Bank of Korea Act;

16. Local government-invested public corporations and local government public corporations under the Local Public Enterprises Act;

17. The Government Employees Pension Service under the Public Officials Pension Act;

18. The Incheon International Airport Corporation under the Incheon International Airport Corporation Act;

19. The National Pension Service under the National Pension Act;

20. The Korea Teachers Pension under the Pension for Private School Teachers and Staff Act;

21. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation (hereinafter referred to as the "Korea Asset Management Corporation");

22. Port authorities under the Port Authority Act.

(2) Where the office of general administration defined in subparagraph 10 of Article 2 of the State Property Act or the head of a central government agency, etc. under subparagraph 11 of that Article acquires or disposes of State property in accordance with a comprehensive plan for State property under Article 9 of that Act and where he, she, or it notifies the permitting agency of the details thereof after he, she, or it acquires or disposes of State property in compliance with the standards for permission under Article 12 of the Act, consultation under Article 14(1) of the Act shall be deemed reached.

(3) "Cases prescribed by Presidential Decree" in Article 14(2)3 of the Act means any of the following cases: <Amended on Feb. 9, 2018; Feb. 27, 2018; Feb. 17, 2022>

1. Where land is acquired, used, or repurchased through consultation in accordance with the Act on Acquisition of and Compensation for Land for Public Works Projects;

2. Where State property is disposed of through a general competitive bidding in accordance with a comprehensive plan for State property under Article 9 of the State Property Act;

3. Where public property is disposed of through a general competitive bidding in accordance with a public property management plan under Article 10 of the Public Property and Commodity Management Act;

4. Where land is sold in lots or reserved land, etc. is sold in accordance with a management and disposal plan under Article 74 of the Act on the Improvement of Urban Areas and Residential Environments and a project implementation plan under Article 29 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;

5. Where land is supplied in accordance with a plan to supply developed land, etc. under Article 26 of the Urban Development Act, where the previous land designated as reserved land for replotting is disposed of in accordance with Article 35 of that Act, where a replotting disposition under Article 40 of that Act is made, or where land allotted by the authorities in recompense for development outlay, etc. is sold in accordance with Article 44 of that Act;

6. Where land developed after obtaining approval of a project plan under Article 15 of the Housing Act is supplied or where housing (including appurtenant facilities and welfare facilities, and where housing and other facilities other than housing are constructed and supplied in that building, including facilities other than such housing) is supplied in accordance with Article 54 of that Act;

7. Where a housing site is supplied in accordance with Article 18 of the Housing Site Development Promotion Act;

8. Where land developed by an industrial complex development project defined in subparagraph 9 of Article 2 of the Industrial Sites and Development Act or a project to develop a quasi-industrial complex under subparagraph 12 of that Article is sold in lots by a project operator under Article 16 of that Act (including the Industrial Complex Management Corporation entrusted with affairs of land sale by a project operator in accordance with Article 38 of that Act);

9. Where a replotting disposition is made in accordance with a replotting plan under Article 25 or 26 of the Agricultural and Fishing Villages Improvement Act or where the exchange, division, and consolidation of farmland, etc. is made in accordance with Article 43 of that Act;

10. Where a project implementer under the Agricultural and Fishing Villages Improvement Act purchases farmland to implement a rural improvement project;

11. Where a right is transferred or established with permission from the court in accordance with the procedures of Sections 10 and 11 of Chapter IV of Part III of the Commercial Act and the Debtor Rehabilitation and Bankruptcy Act;

12. Where a disposition on default of national and local taxes, or compulsory execution thereof is conducted;

13. Where the State or a local government transfers or establishes a right to take emergency measures necessary in case of emergencies and disasters in accordance with statutes or regulations;

14. Where the Korea Rural Community Corporation sells, exchanges, or divides farmland in accordance with the Korea Rural Community Corporation and Farmland Management Fund Act;

15. Where a foreigner, etc. obtains permission to acquire land in accordance with Article 9 of the Act;

16. Where the Korea Asset Management Corporation acquires land or sells it through competitive bidding in accordance with Article 4 or 5 of the Act on the Establishment of Korea Asset Management Corporation, or where the Korea Asset Management Corporation sells land that has been auctioned 3 or more times but has failed to be sold;

17. Where land the purchase of which has been requested in accordance with Article 47 of the National Land Planning and Utilization Act or Article 17 of the Act on Special Measures for Designation and Management of Development Restriction Zones is acquired;

18. Where a housing site or housing developed in accordance with the Special Act on the Construction of Administrative City in Yeongi-Gongju Area for Follow-Up Measures for New Administrative Capital, the Special Act on the Construction and Development of Innovation Cities, or the Special Act on the Development of Enterprise Cities is supplied;

19. Where a building is sold in units in accordance with the Act on Sale of Building Units;

20. Where a knowledge industry center is sold in lots in accordance with Article 28-4 of the Industrial Cluster Development and Factory Establishment Act;

21. Where taxes, charges, etc. are paid in kind with land in accordance with statutes or regulations.

Article 12(Advance sale) #

(1) "Public institutions or organizations prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, Article 15(1) of the Act means institutions or organizations under Article 11(1)1 through 10.

(2) A person designated as an advance-sale purchaser in accordance with Article 15(1) of the Act shall consult on advance sale by notifying the landowner of a document stating the terms and conditions of advance sale, such as purchase prices, within 15 days from the date of receipt of the notice of designation under paragraph (2) of that Article, and shall submit a written report on advance sale consultation to the permitting agency within 1 month from the date of receipt of the notice of designation, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

Article 13(Request for purchase of land) #

(1) A person who intends to request the purchase of land in accordance with Article 16(1) of the Act shall submit a written request stating the following matters to a permitting agency:

1. Types and details of rights to land;

2. Area of land;

3. Other matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(2) "Public institutions or organizations prescribed by Presidential Decree" in Article 16(2) of the Act means institutions or organizations under Article 11(1)1 through 10.

Article 14(Obligations to use land) #

(1) "Unless any ground prescribed by Presidential Decree exists" in Article 17(1) of the Act means any of the following cases: <Amended on Jun. 30, 2020; Jan. 19, 2021>

1. Where it becomes impossible to use land for its original purpose due to restrictions on activities under the National Land Planning and Utilization Act or relevant statutes or regulations due to any change in a plan for utilizing and managing the land, such as special-purpose areas, in accordance with the National Land Planning and Utilization Act or relevant statutes or regulations after acquiring the land;

2. Where an application for permission, authorization, etc. under relevant statutes or regulations has been filed for the use of land, but the State or a local government restricts permission, authorization, etc. for a certain period due to any ground prescribed by Decree of the Ministry of Land, Infrastructure and Transport, which is within the period of restriction;

3. Where the original purpose of use is changed in compliance with the standards for permission under Article 12 of the Act, which is approved by the permitting agency;

4. Where the original purpose of use is changed in compliance with the standards for permission under Article 12 of the Act after obtaining permission for an activity under other statutes, and the permitting authority for the relevant activity has consulted with the permitting agency on the change of the purpose of use;

5. Where a person emigrates in accordance with Article 6 of the Emigration Act;

6. Where a person is in military service in accordance with Article 18 of the Military Service Act or Article 17 of the Act on Assignment to and Performance of Alternative Service;

7. Where it is impossible to implement it according to the permitted purposes due to a disaster defined in subparagraph 1 of Article 2 of the Countermeasures against Natural Disasters Act;

8. Where it is impossible for a person who has obtained permission for a land transaction contract to use the land for the permitted purpose due to reasons not attributable to the person, such as the implementation of a public works project;

9. Where a person who acquires and actually uses any of the following buildings leases part of the relevant buildings:

a. Detached housing under subparagraph 1 of Appendix 1 of the Enforcement Decree of the Building Act [excluding multi-user housing and diplomatic missions];

b. Multi-family housing under subparagraph 2 of Appendix 1 of the Enforcement Decree of the Building Act (excluding dormitories);

c. Class 1 neighborhood living facilities under subparagraph 3 of Appendix 1 of the Enforcement Decree of the Building Act;

d. Class 2 neighborhood living facilities under subparagraph 4 of Appendix 1 of the Enforcement Decree of the Building Act;

10. Where a person who acquires and actually uses factories defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act leases part of the relevant factories;

10-2. Where a person who has obtained permission for a land transaction contract meets all of the following requirements:

a. The purpose of obtaining permission for a land transaction contract shall be to construct and sell housing defined in subparagraph 1 of Article 2 of the Housing Act (including construction of housing and facilities other than housing in that building) or a quasi-housing under subparagraph 4 of that Article;

b. A person who has obtained permission for a land transaction contract shall conclude a trust contract with a trust business entity under Article 8(7) of the Financial Investment Services and Capital Markets Act to require the trust business entity to develop the relevant land, provide it as collateral, or manage the sale of the relevant land;

c. A person who has obtained permission for a land transaction contract and a trust business entity under item b shall use the land for the purposes under item a;

11. Where a Si/Gun/Gu urban planning committee under Article 113(2) of the National Land Planning and Utilization Act recognizes that it is impossible for a person who has obtained permission for a land transaction contract to use the land according to the permitted purposes due to unavoidable reasons.

(2) "Period prescribed by Presidential Decree" in Article 17(1) of the Act means the periods classified as follows:

1. Where permission is obtained for the purposes under subparagraph 1a through c of Article 12 of the Act: 2 years from the date of acquisition of land;

2. Where permission is obtained for the purposes under subparagraph 1d through f of Article 12 of the Act: 4 years from the date of acquisition of the land; provided, where the sale of the land permitted for sale in lots is completed within 4 years from the date of acquisition of the land after commencing the development of the land, it shall be deemed that 4 years have elapsed since the completion of sale in lots;

3. Where permission is obtained to acquire substitute land in accordance with Article 10(2)1: 2 years from the date of acquisition of the land;

4. Where permission is obtained to acquire land for the purpose of preserving the current state in accordance with Article 10(2)2: 5 years from the date of acquisition of the land;

5. Cases other than those under subparagraphs 1 through 4: 5 years from the date of acquisition of land.

Article 14-2(Temporary special cases regarding obligation to use residential land) #

Where a person who owns a house falling under any subparagraph of Article 104(7) of the Income Tax Act and a member of a household who does not own a house has, after applying for permission under Article 11 of the Act for a sales transaction of residential land meeting all the following requirements as residential land for the house, obtained such permission for the purpose of subparagraph 1a of Article 12 before May 9, 2026, notwithstanding Article 14(2)1, the period under Article 17(1) of the Act shall be 2 years from the initial expiration date of a contract for a lease or a right of lease on a deposit basis under subparagraph 3: <Amended on Apr. 23, 2026>

1. It shall be located in an area subject to adjustment (hereinafter referred to as "area subject to adjustment") under Article 63-2 of the Housing Act;

2. It shall be under lease or have a right of lease on deposit basis established as of February 12, 2026;

3. The initial expiration date of a contract concluded for the lease or establishment of a right of lease on a deposit basis under subparagraph 2 shall fall within the period specified in each of the following items:

a. Areas subject to adjustment designated and publicly announced on October 16, 2025: From November 10, 2026 to February 12, 2028;

b. Areas subject to adjustment, other than those under item a: From September 10, 2026 to February 12, 2028;

4. The holding period of residential land by the homeowner shall be at least 2 years as of the date specified in each of the following items:

a. Areas subject to adjustment designated and publicly announced on October 16, 2025: November 9, 2026;

b. Areas subject to adjustment, other than those under item a: September 9, 2026.

[This Article Added on Feb. 27, 2026]

Article 15 #

Deleted. <May 29, 2017>

Article 16(Imposition of charges for compelling compliance) #

(1) The orders for performance under the main clause of Article 18(1) of the Act shall be in writing, and the performance period shall be determined within 3 months.

(2) "Ground prescribed by Presidential Decree" in the proviso of Article 18(1) of the Act means where a charge for compelling compliance under Article 62 of the Farmland Act is imposed for violating any of Article 10(1)1 through 4 of that Act.

(3) "Amount prescribed by Presidential Decree" in Article 18(2) of the Act means the amounts classified as follows:

1. Where a person who has acquired land by obtaining permission for a land transaction contract neglects the land without using it for its original purpose: An amount equivalent to 10/100 of the acquisition value of the land;

2. Where a person who has acquired land by obtaining permission for a land transaction contract leases the land without using it directly: An amount equivalent to 7/100 of the acquisition value of the land;

3. Where a person who has acquired land by obtaining permission for a land transaction contract uses the land after changing the original purpose without obtaining approval from the permitting agency under Article 14(1)3: An amount equivalent to 5/100 of the acquisition value of the land;

4. Where it does not fall under subparagraphs 1 through 3: An amount equivalent to 7/100 of the acquisition value of the land.

(4) The acquisition value of land under each subparagraph of paragraph (3) shall be the actual transaction price; provided, where the actual transaction price is not confirmed, it shall be calculated based on the officially assessed individual land price (referring to the officially assessed individual land price under the Act on the Public Announcement of Real Estate Values) most recently announced as at the time of acquisition.

(5) Before imposing a charge for compelling compliance under Article 18(2) of the Act, the permitting agency shall give a written warning in advance, stating that the charge for compelling compliance will be imposed and collected if an order for performance is not complied with within the compliance period.

(6) The imposition of a charge for compelling compliance under Article 18(2) of the Act shall be made in a document stating the amount of the charge for compelling compliance, grounds for imposition, deadline for payment, collecting agency, methods of raising an objection, agency to which an objection may be raised, etc.

(7) Where a person who has been subject to the imposition of a charge for compelling compliance under paragraph (6) intends to raise an objection in accordance with Article 18(6) of the Act, he or she shall raise an objection within 30 days from the date he or she is notified of such imposition.

Article 17(Investigation into trends of land prices) #

(1) The Minister of Land, Infrastructure and Transport shall investigate the fluctuation rate of land prices nationwide at least once a year in accordance with Article 19 of the Act.

(2) The Minister of Land, Infrastructure and Transport may, if necessary, require the President of the Korea Real Estate Board under the Korea Real Estate Board Act to submit the trends of land prices, the current status of land transactions, and other necessary data at least once a month. In such cases, he or she shall subsidize expenses incurred therein within the limit of actual expenses. <Amended on Dec. 8, 2020>

(3) The Mayor/Do Governor shall investigate the trends of land prices and the current status of land transactions in his or her jurisdiction, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport, and where he or she deems it necessary to designate, reduce, or cancel an area subject to permission as a result of such investigation, he or she may request the Minister of Land, Infrastructure and Transport to designate, reduce, or cancel such area.

(4) Deleted. <Feb. 18, 2020>

Article 18(Processing of personally identifiable information) #

The Minister of Land, Infrastructure and Transport, a report-receiving authority, and a permitting agency may process data that include resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2, or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable to perform the following affairs: <Amended on Oct. 27, 2020; May 31, 2021>

1. Reporting on real estate transactions under Article 3 of the Act;

1-2. Reporting on cancellation, etc. of real estate transactions under Article 3-2 of the Act;

2. Verification of reported matters under Article 5 of the Act (including cases applied mutatis mutandis in Article 6-4(2) of the Act);

3. Investigation, etc. into reported matters under Article 6 of the Act (including cases applied mutatis mutandis in Article 6-4(3) of the Act);

3-2. Reporting on a housing lease contract under Article 6-2 of the Act;

3-3. Reporting on modification and cancellation of a housing lease contract under Article 6-3 of the Act;

4. Reporting on acquisition or possession of real estate by foreigners, etc. under Article 8 of the Act;

5. Permission for land transactions by foreigners, etc. under Article 9 of the Act;

6. Permission for land transactions in areas subject to permission under Article 11 of the Act;

7. Operation of the real estate information system under Article 25 of the Act.

Article 19(Establishment and operation of real estate information system) #

(1) The Minister of Land, Infrastructure and Transport may establish and operate an information system to manage the following information for the efficient management of information and promotion of public convenience in accordance with Article 25 of the Act: <Amended on May 31, 2021>

1. Information on reports on real estate transactions under Article 3 of the Act;

2. Information on the verification system;

2-2. Information on reporting on a housing lease contract under Article 6-2 of the Act;

2-3. Information on reporting on modification and cancellation of a housing lease contract under Article 6-3 of the Act;

3. Data on reporting on acquisition or possession of real estate by foreigners, etc. under Article 8 of the Act and related information;

4. Information on permission for land transaction contracts;

5. Information on approval seal under Article 3 of the Act on Special Measures for the Registration of Real Estate;

6. Information on real estate transactions, such as real estate transaction contracts.

(2) The Minister of Land, Infrastructure and Transport may provide users with information established in the information system. In such cases, if there is an unavoidable reason for the operation of the information system or if it is deemed necessary for the protection of personal information, the type and contents of the information to be provided may be restricted.

(3) Except as provided in paragraphs (1) and (2), matters necessary for the establishment, operation, and use of the information system shall be determined by the Minister of Land, Infrastructure and Transport.

Article 19-2(Persons eligible for monetary rewards and standards for payment thereof) #

(1) A report-receiving authority or a permitting agency shall pay a monetary reward under Article 25-2(1) of the Act in any of the following cases: <Amended on Feb. 18, 2020; May 31, 2021>

1. Where a reporting-receiving authority has reported a person falling under Article 25-2(1)1 and 1-2 through 1-4 of the Act and submitted data evidencing such fact before the reporting-receiving authority has discovered such person, and where an administrative fine under Article 28(1)1 and 2, (3), or (5)3 of the Act has been imposed on the case of report;

2. Where a permitting agency or an investigative agency has reported or accused a person falling under Article 25-2(1)2 of the Act before the permitting agency or the investigative agency has discovered such person, and where a decision to prosecute the case of report or accusation or to suspend such prosecution thereon is made;

3. Where a person falling under Article 25-2(1)3 of the Act is reported before a permitting agency has discovered such person and where an order for performance is issued by the permitting agency with respect to the case of report.

(2) Notwithstanding paragraph (1), monetary rewards may not be paid in any of the following cases:

1. Where a public official files a report or accusation against any fact discovered in connection with his or her duties;

2. Where a person who has committed the relevant violation or has involved in such violation files a report or accusation;

3. Where it is impossible to identify the reporter or accuser because he or she has filed a report or accusation under pseudonym or anonym.

(3) The monetary rewards under paragraph (1) shall be paid in accordance with the following classifications for each case of report or accusation: <Amended on Feb. 18, 2020; May 31, 2021>

1. In cases of monetary rewards under Article 25-2(1)1 and 1-2 through 1-4 of the Act: An amount equivalent to 20/100 of the administrative fines imposed in accordance with Article 28(1), (3), or (5) of the Act; in such cases, the maximum amount of monetary rewards under Article 25-2(1)1 of the Act shall be 10 million won;

2. In cases of monetary rewards under Article 25-2(1)2 or 3 of the Act: 500,000 won; in such cases, a report or accusation on all land acquired for the same purpose shall be deemed 1 case.

[This Article Added on May 29, 2017]

Article 19-3(Procedures for payment of monetary rewards) #

(1) A person who intends to report a person falling under any subparagraph of Article 25-2(1) of the Act shall submit a report and evidencing data prescribed by Decree of the Ministry of Land, Infrastructure and Transport (limited to where a person falling under any of subparagraphs 1 and 1-2 through 1-4 of that paragraph is reported) to the report-receiving authority or the permitting agency. <Amended on Feb. 18, 2020; May 31, 2021>

(2) When an investigative agency completes an investigation by receiving a case of report or accusation against a person falling under Article 25-2(1)2 of the Act and decides to prosecute the case of report or accusation or to suspend such prosecution, it shall notify the permitting agency thereof without delay.

(3) Upon receipt of a report submitted in accordance with paragraph (1) or notification from an investigative agency in accordance with paragraph (2), the report-receiving authority or the permitting agency shall determine whether to pay monetary rewards in accordance with Article 19-2 and notify the reporter or accuser thereof.

(4) A reporter or accuser who is notified of a decision on the payment of monetary rewards in accordance with paragraph (3) shall prepare an application for payment of monetary rewards prescribed by Decree of the Ministry of Land, Infrastructure and Transport and submit it to the report-receiving authority or the permitting agency.

(5) The report-receiving authority or the permitting agency shall pay monetary rewards within 2 months from the date of receipt of an application under paragraph (4).

(6) Where at least 2 persons have reported or accused a single case, monetary rewards shall be distributed and paid, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(7) Except as provided in paragraphs (1) through (6), matters necessary for the procedures, methods, etc. for the payment of monetary rewards shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

[This Article Added on May 29, 2017]

Article 19-4(Entrustment of affairs) #

The Minister of Land, Infrastructure and Transport shall entrust the Korea Real Estate Board under the Korea Real Estate Board Act with the following affairs in accordance with Article 25-3(2) of the Act: <Amended on Feb. 18, 2020; Dec. 8, 2020; Feb. 9, 2021; May 31, 2021>

1. Establishment and operation of a system for verifying real estate transaction prices under Article 5(1) of the Act (including cases applied mutatis mutandis in Article 6-4(2) of the Act);

1-2. The following affairs among the affairs of investigation into reported matters under Article 6(3) of the Act (including cases applied mutatis mutandis in Article 6-4(3) of the Act):

a. Selection of persons subject to investigation;

b. Request for submission and receipt of data to verify whether omitted or inaccurate data and reported matters are true, among data submitted in accordance with Article 3, 3-2, or 8 of the Act;

c. Review of appropriateness of data submitted in accordance with item b;

d. Affairs necessary to perform affairs under items a through c;

2. Establishment and operation of the real estate information system under Article 25 of the Act.

[This Article Added on May 29, 2017]

Article 19-5(Reporting and application for permission through electronic documents) #

(1) Matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport among reporting or applications filed under the Act and this Decree may be submitted through electronic documents.

(2) In cases of submission through electronic documents in accordance with paragraph (1), reporting or applications may be signed or sealed through the method of identification using a certificate defined in subparagraph 6 of Article 2 of the Digital Signature Act (limited to certificates verifying the identity of the signatory based on the real name).

[This Article Added on Oct. 27, 2020]

Article 19-6(Re-examination of regulation) #

The Minister of Land, Infrastructure and Transport shall examine the appropriateness of matters to be reported on the purchase of a house located in land transaction permit zones under Article 3(1) and subparagraph 3-2 of Appendix 1 every 3 years, counting from January 1, 2016 (referring to the period that ends on the day before January 1 of the every third year) and shall take necessary measures, such as making improvements.

[This Article Added on Dec. 9, 2025]

Article 20(Criteria for imposing administrative fines) #

The criteria for imposing administrative fines under Article 28(1) through (5) of the Act shall be as specified in Appendix 3. <Amended on Feb. 18, 2020; Oct. 27, 2020>

Article 21(Criteria for reduction or exemption for voluntary reporters) #

(1) The criteria for the reduction or exemption of administrative fines under Article 29 of the Act shall be as follows: <Amended on Feb. 18, 2020; May 31, 2021>

1. Where a person who has voluntarily filed a report before an investigation is commenced by the Minister of Land, Infrastructure and Transport or a report-receiving authority (hereinafter referred to as "investigative agency") under Article 6(1) or (3) of the Act (including cases applied mutatis mutandis in Article 6-4(3) of the Act, respectively) meets all of the following requirements: Exemption from administrative fines:

a. The violation voluntarily reported shall fall under any of Article 28(2)2 and 3 of the Act or paragraphs (3) through (5) of that Article;

b. The person shall be the first person to solely file a report with the report-receiving authority (including where part or all of the parties to a transaction has filed a joint report; hereafter the same shall apply in this Article);

c. The person shall have cooperated faithfully until the investigation is completed, such as providing necessary data, etc. evidencing such violation;

2. Where a person who has voluntarily filed a report after the investigation is commenced by an investigative agency meets all of the following requirements: 50/100 of reduction in administrative fines:

a. It shall fall under subparagraph 1a and c;

b. The investigative agency shall have cooperated with the investigation without sufficiently securing evidence necessary to prove the fact of false reporting;

c. It shall be the first person who has solely filed a report with an investigative agency.

(2) Notwithstanding paragraph (1), administrative fines shall not be reduced or exempted in any of the following cases: <Amended on Feb. 18, 2020>

1. Where an investigative agency has been notified by a relevant agency of a violation of the Framework Act on National Taxes, the Local Tax Act, or any other relevant statute or regulation in connection with a transaction contract for real estate, etc. on which he or she intends to voluntarily file a report;

2. Where he or she has voluntarily filed a report under paragraph (1)1 and 2 within the past year from the date he or she voluntarily filed a report and received the reduction of or exemption from administrative fines at least 3 times from the relevant report-receiving authority.

(3) A person who intends to voluntarily file a report in accordance with Article 29 of the Act shall submit a written report prescribed by Decree of the Ministry of Land, Infrastructure and Transport and documents evidencing such violation to an investigative agency. <Amended on Feb. 18, 2020>

(4) Except as provided in paragraphs (1) through (3), detailed operational procedures, etc. for the reduction or exemption of administrative fines for voluntary reporters shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport.