Seoul and 15 Gyeonggi Areas Are Now Regulated: A Homebuyer’s Guide to Mortgages and Residency

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SHAWN ASSETS · HOUSING · EN

Information basis: July 18, 2026 · General information, not an individual mortgage, tax or permit determination.

Language EN · English KO · 한국어

Two homes in the Seoul metropolitan area can have similar prices and very different financing outcomes. A change in district, not just price, can alter the mortgage ceiling, the approval process and the date by which a buyer must move in.

The reason is that Korean homebuyers now need to check three things at the same time: whether the address is in a regulated area, whether the property requires a land transaction permit and which borrower category applies.

The first fact to update is the map. As of July 18, 2026, all 25 Seoul districts and 15 designated areas in Gyeonggi Province are classified as both overheated speculation zones and adjustment target areas. The older figure of 12 Gyeonggi areas is no longer current. Hwaseong’s Dongtan-gu, Yongin’s Giheung-gu and Guri City were added in July 2026.

The 15 regulated areas in Gyeonggi

The current list is:

• Gwacheon and Gwangmyeong

• Bundang-gu, Sujeong-gu and Jungwon-gu in Seongnam

• Yeongtong-gu, Jangan-gu and Paldal-gu in Suwon

• Dongan-gu in Anyang

• Suji-gu and Giheung-gu in Yongin

• Uiwang, Hanam and Guri

• Dongtan-gu in Hwaseong

The wording matters. These are 15 areas, not 15 cities. Some designations cover an entire city, while others apply only to specific districts. A home in a different district of the same city may fall under a different set of rules.

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Excerpt from MOLIT, Additional Designation of Overheated Speculation Zones and Adjustment Target Areas, Reference 2, June 30, 2026, p.5. It lists all 25 Seoul districts and the 15 designated Gyeonggi areas. View source

“Regulated area” does not describe one single rule

News reports often place LTV limits, move-in deadlines and owner-occupancy requirements in the same paragraph. Buyers should separate them into three layers.

• Regulated-area rules affect mortgage ratios, taxes and some subscription requirements.

• Land transaction permit rules can require two years of actual residence after acquisition.

• Financial regulations add home-price caps, DSR calculations, stress DSR and lender-specific underwriting.

Passing one layer does not mean the others are satisfied. A land transaction permit does not guarantee mortgage approval, and being eligible for a mortgage does not remove a permit requirement.

The mortgage ceiling is not the same as the amount a bank will lend

For a home-purchase mortgage in a regulated area, the official LTV is 40% for buyers who own no home, and the same 40% applies to a one-home owner who commits to selling the existing home. The LTV is generally 0% for an existing homeowner without that disposal condition. First-time buyers may qualify for a 70% LTV, subject to the applicable conditions and a six-month move-in obligation.

A separate maximum then applies to homes in the capital region and regulated areas.

Home value Maximum mortgage ceiling

KRW 1.5 billion or less KRW 600 million

More than KRW 1.5 billion and up to KRW 2.5 billion KRW 400 million

More than KRW 2.5 billion KRW 200 million

These figures are ceilings, not promised loan amounts. The final amount is usually the lowest result produced by the LTV, the price-based cap, DSR, stress DSR, existing debt and the lender’s own review.

Consider a buyer with no other home purchasing a KRW 1.4 billion property. A 40% LTV produces KRW 560 million, which is below the KRW 600 million price-based ceiling. The DSR review can reduce it further.

For a KRW 2 billion home, 40% would be KRW 800 million, but the price-based ceiling is KRW 400 million. For a KRW 3 billion home, 40% would be KRW 1.2 billion, but the ceiling is KRW 200 million. DSR and bank underwriting can still produce a lower amount.

The practical lesson is simple: calculate the address- and price-based ceiling first, then run the borrower’s income and existing debts through a lender’s preliminary assessment before paying a deposit.

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Excerpt from MOLIT, Additional Designation of Overheated Speculation Zones and Adjustment Target Areas, Reference 1, June 30, 2026, p.3. Check the 40% and 0% LTV rules, KRW 600 million cap, six-month move-in requirement and 70% first-time-buyer LTV. View source

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Excerpt from MOLIT, Housing Market Stabilization Measures, October 15, 2025, p.14. It shows ceilings of KRW 600 million, KRW 400 million and KRW 200 million by home-price band, effective October 16. View source

A six-month move-in deadline and two years of residence are different clocks

This is one of the easiest points to misunderstand.

A buyer using a home-purchase mortgage in a regulated area is generally required to move in within six months of the loan being executed. First-time buyers should also confirm this six-month deadline.

A property subject to a land transaction permit carries a different obligation: the buyer must actually reside in it for two years from the acquisition date. Seoul and the 12 Gyeonggi areas designated in 2025 are covered through December 31, 2026. Dongtan-gu, Giheung-gu and Guri, added in 2026, are covered through December 31, 2027.

The permit zone is not limited in every case to a conventional apartment unit. It can also include certain row houses or multi-family homes in complexes that contain an apartment building. Buyers should confirm the property type and parcel with the relevant city, county or district office before signing.

A limited transition was introduced in 2026 for certain properties with existing tenants. It is not a general exemption. It applies only under narrow conditions, including particular sales by multi-home owners to buyers with no home and applications filed by the specified deadline.

A headline saying that “residency was deferred” is therefore not enough. Buyers should obtain a property-specific answer from the permit authority.

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Excerpt from MOLIT, Additional Designation of Overheated Speculation Zones and Adjustment Target Areas, June 30, 2026, p.1. The notice separates the July 1 regulated-area date from the July 5 land-permit-zone date. View source

What changed in 2026 beyond the map

Dongtan-gu, Giheung-gu and Guri became overheated speculation zones and adjustment target areas on July 1, 2026. Their land transaction permit designation took effect on July 5.

For multi-home owners and rental-business operators

Existing owners also face a separate change. From April 17, 2026, extensions of mortgage loans secured by apartments owned by multi-home owners and rental-business operators in the capital region or regulated areas became generally restricted. Exceptions may apply where a tenant remains in the property, a legal obligation must be met or another unavoidable circumstance is recognized. This is separate from new mortgage rules for buyers with no home.

The temporary suspension of the multi-home capital-gains tax surcharge also ended on May 9, 2026. Transitional treatment depends on contract and permit-application dates, so a general article cannot determine an individual tax bill. A buyer with existing homes should examine both acquisition tax on the new purchase and capital-gains tax on any home to be sold.

A safer order for checking a purchase

• Confirm whether the exact address falls within all of Seoul or one of the 15 designated Gyeonggi areas.

• Ask the local authority whether that property requires a land transaction permit.

• Identify the correct borrower category: no-home household, one-home owner with a disposal condition, existing homeowner or first-time buyer.

• Calculate both the LTV and the price-based mortgage ceiling.

• Ask a lender to run DSR and stress-DSR calculations using income and existing debt.

• Put the six-month mortgage move-in deadline and the two-year permit-zone residency period on separate timelines.

• If more than one home is involved, check acquisition tax, capital-gains tax and the renewal conditions on existing secured loans.

Whenever possible, obtain both the lender’s preliminary view and the permit authority’s answer before paying a reservation or contract deposit. A real-estate agent can explain the process, but cannot approve the mortgage or the land transaction permit.

The takeaway

The current Seoul metropolitan housing map is not simply “all of Seoul plus 12 Gyeonggi areas.” As of July 18, 2026, it is all of Seoul plus 15 designated Gyeonggi areas.

For a buyer, three numbers deserve separate attention: the LTV and price-based mortgage ceiling, the six-month move-in deadline and the two-year owner-occupancy requirement for permit-zone properties. Treating them as separate checks is the best way to avoid a funding or moving-date surprise after signing.

This article summarizes government information available as of July 18, 2026. It does not determine an individual mortgage approval, tax liability or land transaction permit. Confirm the applicable rules with the lender, tax authority or tax professional, and the relevant local permit authority before signing a contract.

References

• Ministry of Land, Infrastructure and Transport, Housing Market Stabilization Measures, October 15, 2025

• Financial Services Commission, Emergency Household Debt Review Meeting, October 15, 2025

• Financial Services Commission, 2026 Household Debt Management Plan, April 1, 2026

• Korea Policy Briefing, Multi-home Capital-gains Tax Surcharge Exclusion for Land-permit Applications Filed by May 9, April 9, 2026

• Ministry of Land, Infrastructure and Transport, Additional Designation of Regulated Areas, June 30, 2026