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A view of a high-density apartment district in Seoul. / Source: Yonhap News

The South Korean government is set to unveil a comprehensive real estate stabilization plan in early July, with measures likely to include expanded regulation zones and stricter mortgage lending rules to rein in soaring apartment prices in Seoul.

With the price spike that began in Gangnam now spreading to other districts, authorities are growing concerned about a repeat of the housing market frenzy seen under the Moon Jae-in administration.

According to officials on June 26, the Ministry of Land, Infrastructure and Transport, the Ministry of Economy and Finance, and the Financial Services Commission are currently in discussions to designate additional speculative zones and areas subject to tightened lending rules. These include possible reclassifications into speculative and price-regulated zones.

The Ministry of Land is expected to finalize and announce new restrictions following an upcoming meeting of the Housing Policy Deliberation Committee.

Meanwhile, the Seoul city government is reportedly considering expanding the current land transaction permit zones—now limited to the three Gangnam districts and Yongsan—to areas along the so-called "Hangang Belt."

This comes as data from the Korea Real Estate Board shows Seoul apartment prices jumping 0.43% this week—the fastest increase in six years and nine months—prompting the government to take swift action.

Areas likely to be newly regulated include non-Gangnam districts where prices have recently surged: Mapo, Seongdong, Gangdong, Dongjak, Gwangjin, Yeongdeungpo, and Yangcheon. Other cities experiencing potential “balloon effects,” such as Gwacheon and Bundang New Town, are also under review.

In parallel, the Financial Services Commission is considering tightening lending regulations in line with the upcoming implementation of the third phase of the Debt Service Ratio (DSR) policy. One key measure under review is the reinstatement of a loan ban on homes priced above 1.5 billion won.