Foreign nationals who want to engage in real estate transactions in South Korea will soon have to declare their residency status and submit a funding plan in line with the government’s fight to contain rising home prices.

On Monday the land ministry announced the stricter regulations, which will go into effect Tuesday in an effort to stop real estate speculation by foreign parties.

Under the new measure, any foreign national seeking to purchase a home in South Korea is required to show proof of a valid visa as well as a residence or place to stay for at least 183 days.

The regulation also requires foreign homebuyers to submit a procurement funding plan, including proof of their bank balance, loans and lending institution details. 

Last year, the land ministry discovered 416 suspicious real estate transactions involving foreign buyers and reported them to agencies such as the Korea Customs Service, the justice ministry and the National Police Agency.

The ministry says the changes will set the stage for more thorough monitoring of irregular transactions and illegal inflows of funds.

The government says it will continue to respond sternly to illegal activities in the real estate market and protect nonspeculative buyers who actually plan to move into their new homes.