The chip boom has driven up housing prices, prompting South Korea to tighten real estate regulations around its semiconductor hub.

According to a Bloomberg report on June 30th, the South Korean government has implemented stricter real estate restrictions in areas outside Seoul and near the semiconductor hub. This comes after the semiconductor industry boom fueled a surge in local housing prices, raising concerns about speculative buying. The Ministry of Land, Infrastructure and Transport announced that Dongtan-gu in Hwaseong, Giheung-gu in Yongin, and Guri have been designated as speculative zones, and stricter loan restrictions will be implemented starting July 1st. These three areas will also be subject to land transaction permit requirements starting July 5th. The Ministry stated that the measures aim to curb speculative purchases and protect genuine housing demanders, while also strengthening housing market monitoring and accelerating housing supply plans. These latest measures come as Seoul apartment prices have risen for 73 consecutive weeks, indicating that previous government measures to cool the housing market have had limited impact. After the new regulations take effect, 25 districts in Seoul and 15 districts in Gyeonggi Province will be designated as restricted areas.