Buying and owning property in Daejeon as a foreigner

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

Everything you need to know before buying real estate is included in our South Korea Property 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 Daejeon. 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 Seoul, Busan, and Daejeon. 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.

What are the legal restrictions or advantages for foreigners buying property in Daejeon compared to locals?

Foreigners enjoy nearly identical property rights as South Korean nationals in Daejeon, with the Foreign Investment Promotion Act ensuring legal equality and prohibiting discrimination.

The main restrictions apply to specific land types near military zones and certain caps on foreign ownership in some developments, typically limiting foreign ownership to no more than 50% of units in a single building. You cannot purchase land designated for public use or areas deemed sensitive for national security.

The key advantage is that no nationality-based restrictions exist - citizens from any country can buy residential real estate in Daejeon. Property rights are strongly enforced under South Korean law, providing robust legal protection for foreign investors.

However, foreigners must comply with additional reporting requirements, including mandatory notification to the district office within 60 days of acquisition, which locals don't face.

As of September 2025, these regulations remain stable and investor-friendly, making Daejeon an attractive destination for international property buyers.

What types of visas or residency permits do I need to buy property in Daejeon as a foreigner?

You do not need any specific visa or residency status to buy property in Daejeon - any foreigner can purchase real estate regardless of their immigration status.

However, property investment can be a pathway to residency. If you invest at least KRW 1 billion (approximately $765,000) in qualifying real estate, you may apply for a temporary residence permit (F-2 visa).

For permanent residency, you can apply after maintaining this investment for five years. Higher investments of KRW 1.5 billion may qualify for immediate permanent residence under certain programs.

No language test is required for temporary residency through investment, though basic Korean proficiency is needed for permanent residency applications.

This makes Daejeon particularly attractive for investors seeking both property ownership and potential residency benefits in South Korea.

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

The entire property purchase process can be completed remotely by appointing a legal representative with properly notarized and apostilled power of attorney.

Some specific steps may require physical presence or representation, including opening a Korean bank account for fund transfers and finalizing land registration at the local cadastral office. However, your appointed representative can handle these tasks on your behalf.

Many foreign buyers successfully purchase properties from abroad, visiting Korea only once for key finalization steps if needed. The remote process typically takes 4-8 weeks from contract signing to ownership registration.

All documents must be properly apostilled and translated into Korean, which your legal representative can coordinate. This flexibility makes Daejeon property investment accessible to international buyers who cannot travel frequently to South Korea.

What are the fiscal implications of buying property in Daejeon, including potential income tax and capital gains tax?

Property ownership in Daejeon involves several tax obligations that foreign buyers must understand before purchasing.

Acquisition tax ranges from 1.1% to 3.5% of the property value and must be paid upon purchase. Annual property holding tax applies based on the assessed property value, with rates varying by district and property type.

Capital gains tax is payable upon sale, ranging from 6% to 45% depending on your holding period and profit margin. Recent reforms have narrowed the gap between tax rates for residents and non-residents, though some differences remain.

Rental income is taxed at progressive rates of 6-45% or flat rates of typically 15.4-16.5% including local income tax. Non-residents face similar rates to residents under current regulations.

Additional taxes apply if you own multiple properties, especially if they're in the same household registration. It's something we develop in our South Korea property pack.

What are the exact steps involved in purchasing property in Daejeon as a foreigner, and what documents are required?

The property purchase process in Daejeon follows a structured timeline typically requiring 4-8 weeks from start to finish.

1. **Property Search and Selection**: Research properties through agents, online listings, or site visits2. **Contract Negotiation**: Sign the purchase contract with typically a 10% deposit3. **Authority Notification**: Submit land acquisition report to the district office within 60 days4. **Fund Transfer**: Transfer purchase funds through a compliant Korean bank account5. **Ownership Registration**: Complete property registration at the local cadastral office

Required documents include your passport with certified copies, apostilled nationality certificate translated into Korean, notarized proof of address with translation, and financial statements proving fund sources.

If purchasing remotely, you'll need a legalized power of attorney for your representative. All foreign documents require Korean translation and often apostille certification from your home country.

Additional documents may include tax compliance certificates, marriage certificates, and birth certificates for dependents if applying for residency benefits through investment.

Is hiring a lawyer mandatory for foreigners purchasing property in Daejeon, or is it optional?

Hiring a lawyer or judicial scrivener is not legally mandatory for foreign property buyers in Daejeon, but it is highly recommended due to language barriers and legal complexity.

Local real estate agents or legal representatives can handle all necessary steps, making them particularly valuable for remote buyers who cannot be physically present during the process.

The legal system allows qualified representatives to manage documentation, registration, and compliance requirements on your behalf with proper power of attorney.

Given the importance of proper document preparation, translation requirements, and strict notification deadlines, professional legal assistance significantly reduces the risk of costly errors or delays.

Most successful foreign buyers use either licensed real estate agents with foreign client experience or legal professionals familiar with international property transactions.

Which areas of Daejeon are most popular with foreigners, and where do they prefer to settle?

Yuseong-gu district attracts the highest number of foreign residents due to its concentration of universities like KAIST and Chungnam National University, along with numerous research centers and expat-friendly amenities.

Seo-gu appeals to international professionals and expat families seeking modern infrastructure, family-oriented living environments, and easy access to city amenities with good international school options.

Daedeok-gu draws tech workers, researchers, and government sector professionals, particularly those working in the Daedeok Innopolis technology cluster which houses numerous international companies and research institutions.

Jung-gu offers more affordable options for budget-conscious foreign buyers, with ongoing urban renewal projects gradually improving the area's appeal for younger professionals and students.

These districts provide the infrastructure, international community, and amenities that foreign residents typically seek when relocating to Daejeon.

Which neighborhoods in Daejeon are best for living, renting out properties, or seeing capital appreciation?

District	Best Investment Strategy	Key Advantages
Yuseong-gu	Living, Rental Income, Capital Growth	Universities, tech hubs, rapid price appreciation, high rental demand
Seo-gu	Family Living, Steady Rental Yields	Modern developments, family amenities, good infrastructure, stable demand
Daedeok-gu	Rental Income, Capital Appreciation	Tech companies, research institutions, growing professional population
Jung-gu	Budget Purchase, Future Growth	Urban renewal projects, younger demographics, affordability
Dong-gu	Budget Investment, Traditional Living	Lower entry prices, slower but steady appreciation, traditional Korean culture

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.

What is the latest data on liveability, gross rental yields, and tourism numbers in Daejeon?

Daejeon ranks highly for liveability, particularly in Yuseong-gu where international schools, improved infrastructure, and vibrant expat communities create an attractive living environment for foreign residents.

Gross rental yields for apartments and officetels range from 3% to 5% as of September 2025, with the best returns typically found in smaller units and short-term rental properties near universities and technology districts.

Tourism to South Korea continues growing, with Daejeon benefiting from increased independent travel and FIT (Foreign Independent Travel) tourism. The city's proximity to major cultural and tourist destinations enhances its appeal to both short-term visitors and long-term foreign residents.

The combination of strong educational institutions, technology sector growth, and improving urban infrastructure supports both rental demand and property value appreciation across key districts.

These factors make Daejeon increasingly attractive for foreign property investment, both for personal residence and rental income generation.

How do property prices break down in different districts of Daejeon and surrounding regions?

The citywide average price for an 84㎡ apartment reached approximately ₩686 million as of June 2025, with significant variations across districts.

Price per square meter averages ₩5.2-5.4 million citywide, but premium districts like Yuseong-gu and Seo-gu command higher prices around ₩6 million per square meter due to superior amenities and infrastructure.

More affordable districts like Jung-gu and Dong-gu offer prices closer to ₩4 million per square meter, making them attractive for budget-conscious investors seeking future appreciation potential.

Property Type	Price Range (KRW)	Best Districts
Studio Apartments	₩400-600 million	Jung-gu, Dong-gu
2-3BR Apartments	₩600 million - ₩1.2 billion	Yuseong-gu, Seo-gu
Officetels	₩300-500 million	All districts
Houses	₩800 million+	Seo-gu, Yuseong-gu

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

What are the common mistakes and pitfalls foreigners make when buying property in Daejeon?

Missing the mandatory 60-day notification deadline represents the most critical error foreign buyers make, potentially invalidating purchases or incurring significant penalties from district authorities.

Inadequate document preparation, particularly failing to properly apostille or translate required documents, causes major delays and legal complications that can derail transactions entirely.

Underestimating the full tax burden, including acquisition taxes, annual property taxes, and potential capital gains taxes, leads to budget shortfalls and financial stress for unprepared buyers.

Language barriers and miscommunication with sellers, agents, or legal representatives increase the risk of costly errors, making professional representation essential for most foreign buyers.

Failing to budget for multiple-home taxes when owning more than one property can create unexpected financial obligations that significantly impact investment returns.

Is it possible for foreigners to get a mortgage in Daejeon, and what are the conditions and rates?

Foreigners can obtain mortgages for Daejeon properties, but face stricter conditions than South Korean nationals, including higher down payment requirements typically ranging from 40-50% of property value.

Loan-to-value ratios are more conservative for non-residents, and interest rates are generally higher than those offered to Korean citizens, varying by lender and the buyer's visa or residency status.

Local banks often require proof of Korean tax compliance, stable income verification, and sometimes a local co-signer or guarantor for foreign applicants without permanent residency.

Some foreign banks operating in Korea and specialized lending programs may offer more favorable terms for higher-net-worth buyers or those with established international banking relationships.

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. InvestAsian South Korea Real Estate Guide
2. BambooRoutes South Korea Real Estate for Foreigners
3. Generis Online Foreign Property Ownership South Korea
4. South Korea Ministry of Foreign Affairs Property Guidelines
5. Invest Korea Property Investment Guide
6. BambooRoutes Moving to Korea Property Guide
7. World Passports South Korea Residency by Investment
8. IMI Daily South Korea Investor Scheme
9. BambooRoutes Moving to South Korea Property
10. Korea Times Foreign Home Buying Regulations