South Korea Mandates Reporting of Crypto Proceeds in Real Estate Transactions

The Korean government has introduced a new reporting requirement that directly links cryptocurrency liquidation with real estate purchases. Under the New Housing Supply Expansion Plan announced on September 7, any individual who converts virtual assets into cash to buy property must now disclose this in the source of funds report (capital plan statement). This measure aims to strengthen transparency in real estate transactions and block the inflow of illicit funds into the housing market.

The regulation was jointly prepared by the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, the Office for Government Policy Coordination, the Financial Services Commission, and the National Tax Service. Alongside this measure, the government also pledged to supply 1.35 million new homes nationwide over the next five years—27,000 annually—while accelerating reconstruction and redevelopment projects to ease imbalances in housing supply.

Importantly, the revised reporting form will now include crypto liquidation proceeds alongside traditional stock or bond sale proceeds. Purchases within land transaction permit zones will also require supporting evidence, ensuring stricter scrutiny. Authorities believe this will curb speculative demand fueled by opaque funding sources and promote a fairer allocation of housing to genuine buyers. Minister of Land, Infrastructure and Transport Kim Yoon-deok emphasized that “a stable housing market depends on both sufficient supply and a transparent, equitable system that ensures homes reach real demand.”