China's land grab in key area of Seoul sparks fury

A view of the presidential office located at the former Ministry of National Defense building in Yongsan district, central Seoul. Yonhap

The Chinese government’s purchase of approximately 4,000 square meters of land in one of Seoul’s most strategically sensitive districts has sparked a firestorm of controversy in Korea.

The revelation has reignited calls for reciprocal regulations on cross-border real estate transactions, deepened national security concerns and drawn sharp criticism of political leaders over their continued inaction.

According to an exclusive report by a local media outlet on Tuesday, supported by Seoul's official certified copy of the land registry, the Chinese government purchased 11 plots totaling 4,162 square meters in Itaewon-dong, Yongsan District, for 29.92 billion won ($21.4 million) in December 2018. The final payment was completed in July 2019. Land registry records list the buyer as the People’s Republic of China.

What makes the deal particularly sensitive is the location.

The property lies just over one kilometer away from several of Korea’s most sensitive security sites, including the Office of the President in Yongsan District, the planned relocation site of the U.S. Embassy at Camp Coiner and several key diplomatic residences in nearby Hannam-dong. It also sits directly above the GTX-A subway line, a major ongoing infrastructure project in the capital.

Land in Seoul used by the U.S. government, established through long-standing alliance agreements for military purposes, faces less scrutiny due to its transparent, agreed-upon nature and clearly defined defense role.

Part of the land was originally owned by the Korean government, which sold it to a private buyer in June 2017. Just 18 months later, ownership was transferred to the Chinese government.

Regarding the purchase, an official at Korea’s foreign ministry confirmed that the government had been aware of China’s land acquisition as early as 2019, during the Moon Jae-in administration.

The official said the ministry’s involvement was neither an approval nor a formal notification, but rather a function permitted under the diplomatic privileges defined by international agreements.

“During the land acquisition process, diplomatic missions are entitled to certain tax exemptions as part of the privileges and immunities granted under diplomatic status,” the official told reporters Thursday. “In this case, the Ministry of Foreign Affairs provided limited assistance in 2019 to facilitate an exemption from acquisition tax, in accordance with the Vienna Convention on Diplomatic Relations.”

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The land had served as an outdoor golf driving range for nearly five decades. Since its purchase by China, however, it has remained vacant, with existing structures left unused and visibly deteriorating, raising questions about Beijing’s intentions for the property.

Following the purchase, the Chinese government installed surveillance cameras on the site but has taken no steps to develop the property in the six years since — a prolonged period of inactivity that is fueling speculation and suspicions.

When questioned about the land’s intended use, an unnamed official at the Embassy of China in Seoul told local media it was purchased for “official embassy use,” attributing the delay in construction to the COVID-19 pandemic. However, the official declined to offer further details, describing any future plans as an “internal matter.”

The Korea Times also contacted the Chinese Embassy, but an official at the embassy said that he was unable to provide a response, explaining that the inquiry needed to be reported up the chain of command.

The revelation has sparked a wave of public outrage, with many questioning why the Chinese government, despite prohibiting both domestic and foreign private land ownership within its own borders, is permitted to hold land in Korea under its own name.

“We can’t buy land in China, but the Chinese government can freely buy multiple plots here? That makes no sense. It must be stopped,” a Korean user wrote on social media.

“This is a blatant violation of reciprocity. Why can’t we buy land in China while they buy ours?” another asked.

“What are our politicians doing? Why are they just sitting on their hands?”

“What country allows another government to buy land? This deal should be voided.”

In China, all land is owned by the state and individuals or entities are granted land use rights for fixed terms — typically 70 years for residential use, 50 years for industrial use, and 40 years for commercial use — rather than full ownership.

This lack of reciprocity in real estate transactions has become a significant issue for Korea, raising not only concerns over economic fairness but also serious national security implications.

A view of buildings in southern Seoul, March 18. Yonhap

While Korea once strictly regulated foreign land ownership — operating under a permit-based system in the 1960s — the framework shifted in 1998 to a notification-based model. As a result, foreigners are allowed to purchase property in Korea, provided they follow certain procedural requirements, such as registering their status or obtaining prior approval when acquiring property in designated zones that are monitored to prevent real estate speculation.

Unlike Korea, several major countries are implementing measures to safeguard their housing and land markets from potential misuse by foreign buyers.

The United States, citing national security, has moved to limit foreign land purchases. As of now, 35 states have either passed or are considering laws that restrict land acquisitions by Chinese individuals and companies.

Australia mandates that foreign buyers obtain approval from its Foreign Investment Review Board and prohibits the purchase of existing homes. Properties left vacant for over six months annually are subject to an additional vacancy fee.

New Zealand bans the purchase of residential properties by foreign nationals who are not citizens of Australia or Singapore, and restricts purchases to newly built homes.

Canada recently extended its ban on foreign residential property ownership from January 1, 2025, to January 1, 2027.

As these examples illustrate, many countries enforce strict limits on foreign property ownership to safeguard their domestic interests — an approach that more and more Koreans are now urging the government to adopt.

Calls are also mounting for greater transparency regarding the future use of the purchased Yongsan land by China and stronger institutional safeguards to prevent similar cases.

According to the latest government data, 17,478 foreigners applied for property ownership transfers in 2024, covering land, buildings and condominium units. Chinese nationals accounted for approximately 64.9 percent of these transactions. After Chinese buyers, Americans and Canadians were the next most active foreign purchasers of residential properties in Korea.

When measured by area, Chinese-owned land in Korea totaled 20.66 square kilometers as of 2022, roughly six times the size of New York's Central Park.