Anchor: The central government and Seoul’s municipal government are reviving a permit system for housing transactions and expanding its reach to cover 400-thousand homes in four affluent districts in Seoul. It was announced Wednesday that all two-thousand-200 apartment complexes in the Gangnam, Seocho, Songpa and Yongsan districts will be subject to strict purchase regulations for at least six months. 
Kim Bum-soo has more. 

Report: The government has brought back the residency requirement for homebuyers in Seoul’s affluent districts. 

[Sound bite: Minister of Land, Infrastructure and Transport Park Sang-woo (Korean-English)]
“First, we will expand the land transaction permit zone, centering around major areas of Seoul that are experiencing high appreciation.”

To get their purchases approved in Gangnam, Seocho, Songpa and Yongsan districts, homebuyers must prove they intend to live in their new properties.

The land minister announced the decision Wednesday, only about a month after the controversial regulation was scrapped in southern Seoul.
 
[Sound bite: Minister of Land, Infrastructure and Transport Park Sang-woo (Korean-English)]
“The housing market is again showing signs of instability. Home prices in the Seoul metropolitan area are rising unusually rapidly, and the trend appears to be spreading to the surrounding areas.”    

The government is targeting “gap investors” who purchase homes that are on a deposit-based "jeonse" lease, unique to the nation.

With the existing tenant's lump-sum security deposit taking up a significant portion of the asset value, the entry barrier is set low for gap investors flocking into the highly coveted districts. 

During the joint news conference, Seoul Mayor Oh Se-hoon apologized for the policy oscillation.

[Sound bite: Seoul Mayor Oh Se-hoon (Korean-English)]
“First, I humbly accept the criticism that the real estate market has become more volatile, especially around the Gangnam area, since the lifting of the land transaction permit zone system on February 12. I apologize to the citizens for any inconvenience this may have caused.”

While calling the regulation “anti-free market,” the mayor said government intervention is necessary as a temporary measure to correct market distortions. 

The residency requirement and other purchase restrictions will be in place for six months starting March 24, but may be extended if necessary.
Kim Bum-soo, KBS World Radio News.