Seoul Real Estate Forced Auctions Hit Record High, Up 44% This Year

Seoul has witnessed a record number of forced real estate auctions in the first seven months of 2024, with ownership transferring for 3,854 properties. This figure represents a significant 44.0% increase compared to the same period last year and is the highest number recorded since the Supreme Court began compiling such statistics in 2010. The trend of increasing forced auctions has been consistent for the past three years. The data reveals that the vast majority of these auctioned properties, accounting for 94.3% of the total, are collective buildings such as apartments, officetels, and multi-family dwellings. This proportion has also steadily risen, from the 60-70% range in the 2010s to 94.3% this year. Forced auctions are distinct from voluntary auctions; they are initiated by a creditor after obtaining a court judgment, typically when a debtor fails to repay debts. Common applicants include tenants who have won lawsuits for the return of their security deposits, the Korea Housing & Urban Guarantee Corporation (HUG) which has covered such deposits, or individual creditors. In total, 21,899 real estate auctions were processed in Seoul from January to July, with 5,001 properties sold, resulting in a sales rate of 22.8%.