Buying and owning property in Busan as a foreigner

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Yes, the analysis of Busan's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Busan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Busan, Seoul, and Daegu. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Busan, and are there any restrictions compared to locals?

Foreigners can legally purchase residential property in Busan with virtually the same rights as Korean citizens.

South Korea's property laws treat international buyers equally regardless of nationality, making it one of the most accessible Asian markets for foreign investment. You can freely buy apartments, houses, land, and commercial property throughout Busan without facing the ownership restrictions common in other Asian countries.

The only limitations apply to specific zones that are also restricted for locals, including military installations, government-restricted areas, and certain heritage sites. These restricted zones are rare within Busan's main residential and commercial districts, so they typically don't affect standard property purchases.

As of September 2025, Korea maintains this open policy toward foreign property ownership, viewing international investment as beneficial to the local real estate market and economy.

Do the rules differ depending on nationality, or is every foreigner treated the same?

All foreign nationals are treated identically under Korean property law, with no preferential treatment based on nationality or bilateral agreements.

Unlike some countries that have reciprocal agreements or special arrangements with specific nations, Korea applies uniform regulations to all international buyers. Whether you're American, European, Chinese, or from any other country, you'll face the same legal requirements, documentation processes, and ownership rights.

The only rare exceptions involve "reciprocity" principles in extremely limited circumstances, but these don't affect standard residential property transactions in Busan. Korean authorities focus on the buyer's legal compliance rather than their country of origin.

This standardized approach simplifies the buying process and ensures consistent treatment for all foreign investors in Busan's real estate market.

What kind of visa or residency status do I need in order to buy or own property in Busan?

No specific visa or residency status is required to purchase or own property in Busan.

Korea allows non-residents to buy real estate without any immigration-related prerequisites, making it unique among many countries that restrict property ownership to residents. You can complete a property purchase while living abroad and maintain ownership indefinitely without establishing Korean residency.

However, property ownership doesn't automatically grant residency rights or visa privileges. If you're considering moving to Korea, you'll need to apply for appropriate visas through separate immigration processes. Property investment can support certain visa applications, such as the F-2 long-term resident visa, but typically requires substantial investment above 500 million KRW for consideration.

It's something we develop in our South Korea property pack.

Do I need to be physically present in Korea to complete the property purchase, or can it be done remotely?

Property purchases in Busan can be completed entirely remotely through proper legal representation.

You can authorize a Korean lawyer, real estate agent, or trusted representative to act on your behalf using a notarized power of attorney. This representative can handle all necessary steps including contract signing, document submission, fund transfers, and property registration at the local Cadaster office.

The key requirements for remote purchases include obtaining a properly notarized and apostilled power of attorney from your home country, establishing secure fund transfer channels through Korean banking systems, and ensuring your representative has clear instructions for each transaction step.

While remote transactions are legally valid and commonly used, many buyers prefer to visit Korea at least once during the process to view properties firsthand and meet their representatives in person.

What is the full step-by-step process of buying property in Busan, and which documents are required?

The Busan property purchase process follows seven structured steps with specific documentation requirements at each stage.

Step	Action Required	Documents Needed
1. Property Search	Secure suitable property via Korean agent	Passport, financial pre-qualification
2. Contract & Deposit	Sign sales contract with 10% deposit	Sales contract, deposit payment proof
3. Official Notification	File Land Acquisition Report within 60 days	Land Acquisition Report, contract copy
4. Fund Transfer	Open Korean bank account or arrange transfer	Bank documents, money laundering compliance
5. Balance Payment	Pay remaining purchase amount	Bank transfer confirmation, tax clearance
6. Deed Registration	Register property at Cadaster office	Registration documents, ownership certificate
7. Final Documentation	Complete all legal requirements	Nationality certificate, notarized power of attorney if remote

Is it mandatory to hire a lawyer or legal representative, and if not, what are the risks of skipping one?

Hiring a lawyer or legal scrivener is optional under Korean law but strongly recommended for foreign buyers.

While Korean real estate agents can handle basic registration procedures, professional legal representation provides crucial protection against documentation errors, fraud detection, proper tax filing guidance, and dispute resolution. Local agents may lack expertise in international buyer requirements and cross-border legal compliance.

The risks of skipping legal representation include incomplete document preparation, missed regulatory deadlines, improper tax filings leading to penalties, vulnerability to fraudulent transactions, and difficulty resolving post-purchase disputes. Legal fees typically represent a small fraction of total transaction costs but can prevent much larger financial losses.

Korean legal professionals familiar with foreign buyer transactions can also assist with ongoing compliance requirements and future property management or resale considerations.

What are the taxes, fees, and additional costs involved when buying, owning, and later reselling property?

Total transaction costs for buying property in Busan typically range from 3-8% of the purchase price, with ongoing ownership costs and potential capital gains taxes upon resale.

1. **Acquisition Tax**: 1-3% of purchase price for standard properties, up to 12% for luxury properties2. **Registration Tax**: Approximately 0.8% of declared property value 3. **Stamp Duties**: Various small fees for document processing4. **Legal and Agent Fees**: 1-2% combined for professional services5. **Notary and Administrative Fees**: Minor costs for document authentication6. **VAT**: Applied to certain commercial property transactions7. **Annual Property Tax**: Progressive rate based on property value8. **Capital Gains Tax**: Applicable when reselling at profit, with rates depending on holding period and residency status

It's something we develop in our South Korea property pack.

Can foreigners access mortgages in Korea, and if so, what banks, rates, and conditions are available, and how can I maximize approval chances?

Foreign buyers can access Korean mortgages through major banks, though with stricter requirements than those applied to local borrowers.

Major Korean banks including KEB Hana Bank, Shinhan Bank, and Woori Bank offer mortgage products to foreign nationals, particularly those with established ties to Korea through employment, residency, or business relationships. Typical requirements include 30-50% down payments, higher than the 10-20% often available to Korean citizens.

Interest rates for foreign borrowers are generally higher than local rates, with additional scrutiny applied to income documentation, credit history verification, and intended property use. Banks prefer lending to borrowers with Korean income sources, established banking relationships, or significant assets in Korea.

To maximize approval chances, establish a relationship with a Korean bank before applying, maintain substantial cash reserves beyond the down payment, provide comprehensive income documentation from your home country, and consider using local employment or business income if available. Non-residents face additional challenges but can still obtain financing with proper preparation and documentation.

What are the main neighborhoods in Busan where foreigners prefer to settle, and why?

Foreign residents in Busan gravitate toward specific districts that offer international amenities, convenient transportation, and established expat communities.

Haeundae stands as the top choice for international buyers, featuring beachfront living, international schools, major hotels and restaurants, and the largest concentration of foreign residents in Busan. The area offers high-quality apartments with ocean views and strong rental demand from both locals and tourists.

Suyeong, Gwangalli, and Centum City attract professionals and young expatriates with modern developments, excellent dining and entertainment options, proximity to business districts, and convenient access to Gimhae International Airport. These areas balance urban convenience with coastal lifestyle benefits.

Yeonje district appeals to those seeking central location with access to government offices, administrative services, and transportation hubs, making it popular among foreign business professionals and long-term residents who prioritize practical convenience over beachfront amenities.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas of Busan are currently best for living, renting out, or long-term capital appreciation, based on liveability indexes, rental yields, tourism data, and growth forecasts?

Busan's property investment opportunities vary significantly by district, with different areas excelling in rental yields, capital appreciation, or quality of life factors.

For rental income, Haeundae leads with consistent tourist and business traveler demand, generating strong short-term rental yields through its beachfront location and international appeal. Gwangan and Seomyeon districts offer excellent medium to long-term rental prospects due to their popularity with young professionals, students, and expatriate workers.

Centum City represents the strongest long-term capital appreciation potential as Busan's primary business and retail hub, featuring ongoing commercial development, major shopping centers, and corporate headquarters that drive property value growth. The area benefits from substantial government investment in infrastructure and urban planning.

For affordable entry with growth potential, Dongnae, Yeonje, and Busanjin districts offer better value propositions with emerging development projects, improved transportation links, and urban renewal initiatives that position them for future appreciation. These areas currently trade at significant discounts to premium districts while showing signs of gentrification and modernization.

What is the typical breakdown of property prices across different districts of Busan, and how do they compare with other Korean cities?

Busan property prices show significant variation across districts, with premium areas approaching Seoul pricing while others remain substantially more affordable.

Haeundae commands the highest prices in Busan, particularly for beachfront properties and luxury condominiums, with prime locations reaching price levels comparable to mid-tier Seoul districts. Centum City and Suyeong areas price similarly to Haeundae due to their business district status and modern developments.

Western Busan districts including Saha, Sasang, and Buk-gu offer the most affordable entry points, typically priced 40-60% below Haeundae levels while experiencing rapid modernization and infrastructure improvements that suggest future appreciation potential.

Compared to Seoul, Busan properties generally cost 15-35% less per square meter across comparable quality and location factors. However, premium Busan areas are closing this gap as the city develops its reputation as a major economic center and tourist destination. Other major Korean cities like Daegu and Gwangju typically price 20-40% below Busan levels, while Incheon prices similarly to mid-tier Busan districts.

What are the most common mistakes foreigners make when buying property in Busan, and how can they be avoided?

Foreign property buyers in Busan commonly encounter five major pitfalls that can result in financial losses or legal complications.

1. **Improper registration procedures**: Failing to complete property registration correctly or missing the 60-day Land Acquisition Report deadline can void transactions or incur substantial fines2. **Inadequate due diligence**: Not researching zoning restrictions, usage limitations, or redevelopment plans, particularly in mixed-use areas undergoing urban renewal3. **Using unverified representatives**: Working with unlicensed brokers or informal agents increases fraud risk and reduces legal protection4. **Underestimating total costs**: Not accounting for all acquisition costs, ongoing taxes, maintenance fees, and compliance requirements leading to cash flow problems5. **Documentation oversights**: Missing required paperwork for tax filings, legal compliance, or regulatory reporting resulting in penalties or legal issues

These mistakes can be avoided by engaging licensed real estate professionals, conducting thorough property research including zoning and development plans, maintaining detailed documentation throughout the process, budgeting for all associated costs beyond the purchase price, and ensuring compliance with all Korean legal and tax requirements.

It's something we develop in our South Korea property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. South Korea Real Estate for Foreigners
2. Invest Asian - Busan Property Investment
3. Moving to South Korea and Buying Property
4. Moving to Korea - Property Purchase Guide
5. Foreign Property Ownership in South Korea
6. Juwai Asia - Korean Property Laws
7. Seoul Law Group - F5 Visa Korea
8. Busan Metropolitan City Official