Can Foreigners Buy Property in Korea? The Complete Buying Process

Most foreign buyers who start their Korea property search do not know about the permit zone rule that took effect in August 2025. In Seoul and most of the Gyeonggi and Incheon metro area, you now need government approval before signing a contract. Miss this step and the contract may be void.

This guide covers what you need to know: who can buy, the permit zone rule, the two foreigner-specific filings, the purchase process from contract to registration, taxes, mortgages, and due diligence.

Can foreigners buy property in Korea?

Yes. Korea has no general ban on foreign property ownership. The right to buy derives from the Real Estate Transaction Reporting Act (부동산 거래신고 등에 관한 법률). The Act imposes reporting and, in designated areas, permit requirements, but not a blanket ownership restriction.

There are three foreigner-specific obligations on top of the standard buying process:

1. A prior permit in designated zones (before signing any contract in Seoul, most of Gyeonggi, and seven Incheon districts, as of August 2025).
2. A 60-day acquisition report (부동산 취득 신고) filed after signing.
3. A foreign exchange declaration (외국환거래 신고) to a bank if you bring purchase funds from overseas.

The standard buying steps (contract, payment stages, title registration, taxes) are covered below and apply to everyone.

One note on property types: some areas near military installations, cultural heritage sites, or ecosystem preservation zones require a separate prior permit under the Military Installation Protection Act (군사시설보호법). A contract signed without that permit is void. If you are considering property in or near such areas, consult a licensed attorney or the relevant ministry before proceeding.

The 2025 permit zone: what it is and who it affects

What changed in August 2025

Before August 26, 2025, foreign buyers could sign a contract anywhere in Korea and then file a report afterward. That system still applies outside the designated zones.

Inside the designated zones, the process is now reversed: you must apply for and receive a Land Transaction Permission Certificate (토지거래허가증) before signing any contract. This was announced by the Ministry of Land, Infrastructure and Transport (MOLIT) as Announcement No. 2025-1058.

The designation runs through August 25, 2026. As of July 2026, no extension has been confirmed. Verify at MOLIT before proceeding, because an extension could be announced with short notice (as of 2026; verify current status at molit.go.kr).

Which areas are covered

The designated zone includes:

• All 25 districts (구) of Seoul.
• 23 cities and counties in Gyeonggi Province, including Suwon, Seongnam, Goyang, and Pyeongtaek. Excluded Gyeonggi areas: Yangju, Icheon, Uijeongbu, Dongducheon, Yangpyeong, Yeoju, Gapyeong, and Yeoncheon (eight in total).
• Seven districts of Incheon. Excluded Incheon areas: Dong-gu, Ganghwa, and Ongjin.

Who is affected

The permit requirement covers foreign individuals, foreign corporations, foreign governments, and Korean companies where foreigners hold 50% or more of capital or voting rights, under the Real Estate Transaction Reporting Act Article 2(4).

Which property types are covered

The permit applies to: single-family homes (단독주택), multi-family homes (다가구주택), apartments (아파트), townhouses (연립주택), and multi-unit residences (다세대주택) under the Building Code Enforcement Decree.

Excluded: officetels (오피스텔), gifts (증여), inherited property (상속), and court auctions (경매).

How the permit process works

The buyer and seller apply jointly to the local district or city office before signing anything. The authority checks that the purchase is for genuine residential use, not speculation. Once the certificate is issued, the contract can proceed.

After the purchase closes, the permit holder must move in within four months and reside in the property for at least two years. Violations carry repeated fines of up to 10% of the property value and possible cancellation of the purchase.

Outside the permit zones

In Busan, Daegu, Jeju, and areas of Gyeonggi and Incheon not included in the 2025 designation, the older system applies: sign the contract, then file the 60-day acquisition report. No prior permit is needed.

Two foreigner-specific filings

1. Acquisition report (부동산 취득 신고)

Every foreign buyer must file this report after signing a purchase contract. The legal basis is Real Estate Transaction Reporting Act Article 8.

Deadline: Within 60 days of the contract signing date.

Where to file: The district or city office (시/군/구청) with jurisdiction over the property's location. You can also file through the Real Estate Transaction Management System online.

Documents you need:

• The purchase contract
• A property register extract (등기부등본) showing the seller's name
• Your passport or Alien Registration Card (외국인등록증)

For non-contract acquisitions (inheritance, court auction, merger), the deadline is six months from the acquisition date.

2. Foreign exchange declaration (외국환거래 신고)

If you bring purchase funds from outside Korea, you must declare the transaction to a designated foreign exchange bank (외국환은행) before those funds are withdrawn or transferred for the purchase. The legal basis is the Foreign Exchange Transactions Act (외국환거래법).

Documents you need at the bank:

• The purchase contract
• A property appraisal or official price certificate (공시지가 확인서)
• A property register extract (등기부등본)

Why this matters beyond the purchase: Completing this declaration creates a paper trail. Without it, remitting the sale proceeds out of Korea later is difficult. If you plan to eventually sell and transfer the money abroad, the declaration is the step that makes that possible.

Contact: Bank of Korea Foreign Exchange Supervision Team, 02-759-5300.

Foreign residents who buy with Korean-earned income held in a Korean account are generally not subject to this filing. If you are unsure whether it applies to your situation, confirm with your bank before transferring funds.

The purchase process

Finding a property and working with an agent

Korea's property market runs largely through licensed real estate agents (공인중개사). Look for the 공인중개사 sign at the office entrance. In permit zones, you cannot proceed without first having the permit certificate, so engage a licensed agent early and confirm they are familiar with the permit zone process.

Contract and payment stages

A Korean residential purchase follows three payment stages:

1. Contract deposit (계약금): About 10% of the purchase price, paid at contract signing. If you pull out, you lose the deposit. If the seller pulls out, they return double.
2. Interim payment (중도금): Not always used in secondary-market transactions. Common in pre-construction sales (분양) and typically 10% to 40% of the price, paid between signing and closing.
3. Balance payment (잔금): The remaining amount, paid on the closing date. Keys and registration documents are exchanged the same day.

Title registration (부동산등기): why paying is not enough

Paying the balance does not make you the legal owner. Under Civil Act Article 186, ownership transfers against third parties only through registration at the district court registry (등기소).

If a lien or mortgage is placed on the property after you pay but before you register, you could lose ownership. Register immediately after the balance payment.

What to submit for registration:

• The transfer contract
• The acquisition report receipt
• Proof of acquisition tax payment
• The seller's cooperation (their registration obligation certificate and seal)

Registration is typically completed within five to 10 business days.

Online access: iros.go.kr (대법원 인터넷등기소). Non-residents without a Korean-issued digital certificate may need a local representative to handle the filing.

Due diligence: what to check before you sign

Property register extract (등기부등본)

Pull this document from iros.go.kr or any community service center (주민센터) before signing anything and again on the day you pay the balance. Check for:

• Owner name matching the seller
• Mortgages (근저당)
• Liens (가압류)
• Seizure orders (압류)
• Any prior ownership or tenancy claim

The fee is small and available online to anyone.

Building register (건축물대장)

Get this from government24 at gov.kr or the local district office. It confirms the building's legal use designation, floor area, and construction status. If the actual use differs from the legal designation (for example, an illegally partitioned unit), you could face complications with financing, insurance, or future sale.

Taxes when buying

Acquisition tax (취득세)

This is paid to the local government within 60 days of purchase, under the Local Tax Act (지방세법) Article 11. The rate depends on the purchase price bracket and how many homes you hold in total.

Local education tax (지방교육세) and special rural development tax (농어촌특별세) are added as surtaxes on top of the acquisition tax.

For a first home at moderate prices, the combined effective rate is typically in the range of 1% to around 3.5% once surtaxes are included, but the exact figure changes with the tax schedule. Do not rely on these figures as current: verify the current rate table at wetax.go.kr or with the local tax office before buying (as of 2026; verify current rates before purchase).

For buyers who already own multiple homes, rates can escalate significantly under the Local Tax Act. Buyers purchasing in regulated zones as corporations also face elevated rates.

No nationality-specific surcharge or exemption on acquisition tax has been confirmed for foreigners. Verify this at nts.go.kr.

Holding taxes

Property tax (재산세): Levied annually by the local government. The assessment date is June 1 each year. Rates vary with the publicly assessed property value (as of 2026; verify current rates at wetax.go.kr).

Comprehensive real estate tax (종합부동산세, 종부세): A national tax on high-value property holdings above a government-set threshold. Rates and thresholds have changed multiple times in recent years. Verify the current threshold and rates at nts.go.kr before assuming whether your property will be subject to it.

Brokerage fees

Sales brokerage fees (중개보수) are capped by law. Both buyer and seller pay the agent separately.

The Seoul Metropolitan Government rate table (last updated October 19, 2021; verify at english.seoul.go.kr whether updated) sets ceilings for Seoul sales transactions:

For transactions outside Seoul, check the Korea Real Estate Agency Association fee tool at kar.or.kr or the MOLIT electronic contract system at irts.molit.go.kr.

Can foreigners get a mortgage?

Yes, but eligibility varies. The factors that matter most are:

Visa and residency status: Buyers with an Alien Registration Card (외국인등록증) and documented Korean-source income have the broadest access. Non-residents face more restrictions and some lenders will not lend to them at all.

Loan-to-value limits: In Seoul and other regulated zones, the Financial Services Commission (FSC) and Bank of Korea set loan-to-value limits that apply to all borrowers, not just foreigners. These limits change under macroprudential policy. Verify current limits at fsc.go.kr before calculating how much you can borrow (as of 2026; verify current LTV caps before applying).

Debt service ratio: A debt service ratio cap applies to all borrowers, covering the share of annual gross income that can go toward loan repayments. Confirm the current figure with your lender.

Permit zone and residency obligation: If you bought in a permit zone, the bank will need to see the permission certificate. The residency obligation (two years minimum) affects which loan structures are available.

Major Korean banks that have been cited as accommodating to foreign applicants include KEB Hana Bank, Shinhan Bank, Woori Bank, and KB Kookmin Bank. Bank product availability changes. Contact each bank directly and do not treat any specific LTV or rate figure as current without confirming.

If you are a non-resident without a Korean bank account or credit history, getting a mortgage will be significantly harder. Talk to a licensed mortgage broker or financial advisor familiar with foreigner lending before assuming financing is available for your situation.

FAQ

Can foreigners buy property in Korea?

Yes. Korea has no general ban on foreign property ownership. Most residential and commercial property is open to foreign buyers. The main additional steps are a prior permit in designated zones (as of August 2025 in Seoul and much of Gyeonggi and Incheon), a 60-day acquisition report, and a foreign exchange declaration if you bring funds from abroad.

Do foreigners need government permission before buying property in Seoul?

Yes, since August 26, 2025. Before signing any contract in all 25 Seoul districts, 23 Gyeonggi cities and counties, or seven Incheon districts, you must apply jointly with the seller to the local authority and receive a Land Transaction Permission Certificate (토지거래허가증). This designation runs through August 25, 2026; verify at MOLIT whether it has been extended before you start your search.

What is the 60-day acquisition report and who has to file it?

All foreign buyers must file an acquisition report (부동산 취득 신고) at the district office covering the property's location within 60 days of signing the purchase contract. This applies everywhere in Korea, including inside the permit zones. You need the purchase contract, a property register extract (등기부등본), and your passport or Alien Registration Card (외국인등록증).

Why does paying the purchase price not make me the legal owner?

Korea's Civil Act (민법) Article 186 requires registration for ownership to transfer against third parties. Until the title is registered at the district court registry (등기소), you have no enforceable ownership. If the seller's creditors file a lien after you pay but before you register, you could lose the property. Always register promptly after the balance payment.

What is the foreign exchange declaration and when do I need it?

If you bring purchase funds from overseas, you must declare the transaction to a designated foreign exchange bank (외국환은행) before the funds are used for the purchase. The legal basis is the Foreign Exchange Transactions Act (외국환거래법). Completing this declaration creates the paper trail you will need to remit sale proceeds out of Korea later. Contact the Bank of Korea's Foreign Exchange Supervision Team at 02-759-5300 for guidance.

What taxes do I pay when I buy property in Korea?

The main purchase-time tax is acquisition tax (취득세) under the Local Tax Act (지방세법) Article 11, paid to the local government within 60 days of purchase. Local education tax and special rural development tax apply on top as surtaxes. The exact rate depends on the purchase price and how many homes you already hold. Verify current rates at wetax.go.kr before buying.

Can foreigners get a mortgage in Korea?

Yes, but eligibility depends on visa status, income source, and the property's location. Buyers with an Alien Registration Card (외국인등록증) and Korean-source income have the broadest access. Lenders in Seoul and other regulated zones apply loan-to-value limits set by the Financial Services Commission (FSC). Those limits change under macroprudential policy, so contact a lender directly and check fsc.go.kr for current rules.

What should I check in the property register (등기부등본) before buying?

Pull the property register extract (등기부등본) from iros.go.kr or any community service center (주민센터) before you sign anything. Check that the owner name matches the seller, and look for mortgages (근저당), liens (가압류), and seizure orders (압류). Any of these can affect your ownership after purchase. Also check the building register (건축물대장) from gov.kr to confirm the legal use and floor area.

Are the permit zone rules different outside Seoul?

Yes. In Busan, Daegu, Jeju, and areas of Gyeonggi and Incheon not included in the 2025 designation, foreign buyers do not need prior permission. The older system applies: sign the contract, then file the acquisition report within 60 days. The foreign exchange declaration requirement applies everywhere when funds come from abroad.

What is the brokerage fee for buying property in Seoul?

Brokerage fees (중개보수) for sales transactions are capped by regulation. The Seoul Metropolitan Government rate table (last updated October 19, 2021; verify whether updated) sets the ceiling at 0.7% for transactions of ₩1.5 billion and above, with lower caps for smaller amounts. Both buyer and seller pay separately. Check the current rate table at english.seoul.go.kr or the Korea Real Estate Agency Association tool at kar.or.kr.

@misc{seoulstart-buying-property-korea,
  author = {{Seoulstart Editorial Team}},
  title = {{Can Foreigners Buy Property in Korea? The Complete Buying Process (2026)}},
  year = {2026},
  publisher = {Seoulstart},
  url = {https://seoulstart.com/guides/buying-property-korea},
  note = {Last updated July 15, 2026}
}