South Korea designates Dongtan, Giheung and Guri as housing‑price regulation zones

South Korea’s Ministry of Land, Infrastructure and Transport has designated three rapidly appreciating areas—Dongtan in Hwaseong, Giheung in Yongin and Guri—as both speculative‑overheating/adjustment target zones and land‑transaction‑permit zones. The measures take effect on 1 July, with the permit‑zone status running until 31 December 2027. New restrictions include lowering the loan‑to‑value ceiling for non‑owner occupants to 40% (owners to 0%) and imposing an additional up‑to‑30‑percentage‑point capital‑gains‑tax surcharge on multiple‑home owners. New apartments in the permit zones must be occupied for two years, though a deferment is possible if a buyer acquires the unit from a tenant before the end of the year. The policy response follows June price spikes of 1.62 % in Dongtan, 1.27 % in Guri and 1.06 % in Giheung, driven by a semiconductor boom and the upcoming GTX‑A rail line. The government says it will enforce the rules strictly and continue broader housing‑supply initiatives.