How to buy a house in Busan?

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 Seoul, Busan, and Incheon. 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.

How straightforward is it for foreigners to buy property in Busan compared to Western countries?

Buying property in Busan as a foreigner is moderately straightforward but has become more regulated since August 2025.

The process is less restrictive than countries like Switzerland where foreigners face severe limitations, but more controlled than the United States or Canada where foreign buyers typically face fewer hurdles. As of September 2025, foreign buyers in Busan must obtain government approval before purchase and commit to residing in the property for at least two years.

Unlike some Western countries, you don't need permanent residency or citizenship to buy property in Busan. However, the new regulations require you to prove your intention to actually live in the property rather than use it purely for investment or rental income. This makes Busan's market similar to certain restricted zones in Australia or New Zealand where foreign investment faces scrutiny.

The documentation requirements are extensive but manageable with proper preparation. Most international buyers find the process comparable to buying property in major European cities, though language barriers can add complexity.

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

What types of properties can foreigners buy in Busan and what restrictions apply?

Foreigners can purchase most residential properties in Busan including apartments, single-family houses, townhouses, and multi-story residential buildings.

Officetels, which are studio-style units combining residential and business use, are often exempt from the strictest regulations and remain easier to purchase. Standard apartments in high-rise buildings represent the most common purchase type for foreign buyers, with fewer restrictions than detached houses in certain neighborhoods.

The key restriction introduced in August 2025 requires foreign buyers to obtain local government approval before purchase. You must demonstrate intention to reside in the property and cannot rent it out during the mandatory two-year occupancy period. Violations of these rules can result in contract nullification and financial penalties.

Certain areas near military installations or strategic facilities may have additional restrictions, but these affect relatively few properties in Busan's main residential districts. Commercial properties and land purchases face separate, often more complex regulations.

Foreign buyers cannot purchase agricultural land or properties in designated protection zones without special permits that are rarely granted.

Does buying property in Busan provide a path to South Korean residency or citizenship?

Property ownership in Busan does not automatically grant residency rights or citizenship in South Korea.

However, significant property investment can support visa applications under South Korea's investor visa programs. The typical investment threshold ranges from 500 million to 1.5 billion KRW (approximately $380,000 to $1,200,000 USD) depending on the specific visa category and location.

These investor visas can lead to long-term residence permits but require maintaining the investment and meeting additional criteria like job creation or business operation. The property must often be part of a broader business plan rather than purely residential investment.

For citizenship through naturalization, you would need several years of legal residency in South Korea plus cultural integration requirements including language proficiency. Property ownership can support your application but alone is insufficient for naturalization.

The residency requirement for property buyers (living in the property for at least two years) may help establish your ties to South Korea if you later apply for longer-term visas, but this connection is not guaranteed.

Can you complete the entire property purchase process remotely from outside South Korea?

Yes, you can buy property in Busan entirely from abroad using power of attorney arrangements.

You'll need to grant legal power of attorney to a trusted representative in South Korea, typically a lawyer or real estate professional, who can sign documents and complete transactions on your behalf. All major procedural steps including contract signing, government approval applications, and property registration can be handled through your representative.

Financial transfers from overseas must comply with South Korea's Foreign Exchange Transaction Act, requiring proper documentation of fund sources and purposes. Most international wire transfers for property purchases are processed smoothly through major banks with proper paperwork.

The main challenge with remote purchases is the new occupancy requirement - you must physically move into the property within four months of purchase and reside there for at least two years. This means while you can buy remotely, you cannot remain abroad indefinitely.

Some verification processes may be easier to complete in person, but determined remote buyers with good legal representation can navigate the entire process from abroad.

What are the step-by-step procedures from finding a property to final ownership?

The Busan property buying process follows a structured sequence that typically takes 1-3 months to complete.

Step	Timeline	Key Requirements
Property Search & Selection	2-8 weeks	Engage licensed real estate agent, view properties
Offer & Contract Negotiation	1-2 weeks	Submit offer, negotiate terms, prepare purchase contract
Government Approval Application	2-4 weeks	Submit approval request with residency commitment proof
Deposit Payment	1-3 days	Pay 10% deposit upon contract signing
Final Payment & Closing	1-2 weeks	Complete remaining payment, transfer funds legally
Property Registration	3-7 days	Register ownership with cadastral office
Move-In Requirement	Within 4 months	Establish residence, begin 2-year occupancy period

Each step requires specific documentation and compliance with both general property law and the special regulations for foreign buyers introduced in 2025.

Which documents are absolutely required versus optional for foreign property buyers?

Foreign buyers need several mandatory documents plus additional papers depending on their specific situation.

**Absolutely Required Documents:**1. Valid passport with sufficient validity period2. Alien Registration Card (if you're already residing in South Korea)3. Government approval documentation for foreign property purchase4. Signed purchase contract with all terms clearly specified5. Proof of funds and legal source documentation for international transfers6. Property registration application forms7. Korean tax identification number for property ownership**Situational or Optional Documents:**1. Power of attorney if purchasing remotely through a representative2. Mortgage pre-approval letters if seeking financing (rare for foreigners)3. Visa documentation if applying for investor residence permits4. Translation of foreign financial documents if required by banks5. Employment verification letters if seeking mortgage approval6. Marriage certificates if purchasing jointly with a spouse

The documentation requirements have become more stringent with the new foreign buyer regulations, particularly around proving intention to reside in the property.

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

How reliable are real estate agents in Busan and how do you find trustworthy ones?

Most real estate agents in Busan are licensed professionals, but quality and reliability vary significantly across the market.

Licensed agents must pass government examinations and maintain professional credentials, providing a baseline level of competence. However, language barriers, commission pressures, and varying levels of experience with foreign clients create challenges in finding optimal representation.

Many established agencies now offer English-language services specifically for international buyers, with agents who understand both Korean property law and foreign buyer concerns. These specialized services typically charge standard commission rates but provide valuable cultural and legal translation.

Red flags include agents who pressure quick decisions, avoid showing proper licensing credentials, or promise to circumvent legal requirements like government approval. Reliable agents will explain all regulatory steps clearly and connect you with legal professionals for contract review.

The best approach involves getting referrals from other foreign property owners, checking agent credentials through official licensing boards, and interviewing multiple agents before selecting representation.

What legal protections exist for foreign buyers and what precautions should you take?

South Korea's property law provides strong ownership rights for foreign buyers who comply with all regulatory requirements.

The legal system protects legitimate property ownership through comprehensive registration systems and courts that enforce contracts fairly regardless of nationality. However, non-compliance with foreign buyer regulations can result in contract nullification, fines, or forced sale requirements.

Key legal protections include clear title registration, standardized purchase contracts, and dispute resolution mechanisms through Korean courts. Property ownership rights are well-established and transferable, providing security for compliant foreign owners.

Essential precautions include ensuring all government approvals are obtained in writing before completion, using bilingual legal advisors for contract review, and maintaining detailed documentation of all financial transfers. Working with licensed professionals and avoiding unlicensed intermediaries reduces legal risks significantly.

The new occupancy requirements create additional compliance burdens - failing to move in within four months or renting the property during the mandatory two-year period can trigger legal penalties and potential loss of ownership rights.

What are the most common errors foreign buyers make when purchasing property in Busan?

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.

The most critical mistake is underestimating or ignoring the new occupancy requirements introduced in August 2025.

**Most Common Mistakes:**1. **Violating Occupancy Rules**: Buying property without understanding the mandatory 2-year residency requirement or attempting to rent it out during this period2. **Inadequate Government Approval**: Proceeding without proper approval or providing insufficient documentation for the approval process3. **Underestimating Total Costs**: Focusing only on purchase price while ignoring taxes, fees, and ongoing obligations that can add 2-6% to total costs4. **Using Unlicensed Agents**: Working with unqualified intermediaries who cannot properly navigate legal requirements5. **Poor Financial Planning**: Failing to properly document international fund transfers or plan for South Korean tax obligations

Many foreign buyers also make the mistake of treating Busan property purchases like investment properties in other countries, not realizing that the new regulations specifically target investment-focused purchases rather than genuine residence.

Language barriers compound these issues when buyers don't fully understand contract terms or regulatory requirements, making professional legal and translation services essential rather than optional.

How long does the complete buying process typically take from initial search to legal ownership?

The entire process from property search to legal ownership typically takes 2-4 months for foreign buyers in Busan.

Property search and selection usually requires 2-8 weeks depending on your criteria, budget, and market familiarity. International buyers often need more time to understand neighborhoods, pricing, and property types compared to local purchasers.

The legal and administrative steps take approximately 4-8 weeks, with government approval for foreign buyers adding 2-4 weeks to the traditional timeline. This approval step is now mandatory and cannot be rushed, making it a critical factor in timeline planning.

Cash purchases proceed faster than financed purchases, though most foreign buyers use cash due to limited mortgage availability. International fund transfers require additional time for compliance verification, typically adding 3-5 business days to the payment process.

Factors that can extend the timeline include incomplete documentation, complex property histories, or complications with government approval applications. Working with experienced professionals familiar with foreign buyer requirements helps minimize delays.

What are the complete costs, fees, and taxes for buying property in Busan?

Total costs for buying property in Busan typically range from 2-6% of the purchase price beyond the property cost itself.

Cost Type	Rate/Amount	Notes
Real Estate Agent Fee	0.5-1.0%	Standard commission, split between buyer/seller
Acquisition Tax	1-4%	Varies by property type and location
Registration Tax	0.2-0.8%	For legal ownership registration
Stamp Duty	0.1-0.2%	On purchase contract
Government Approval Fees	Varies	New requirement, typically modest
Legal/Notary Fees	0.1-0.5%	Professional services
Annual Property Tax	0.07-5%	Ongoing annual cost

Additional ongoing costs include education tax (up to 20% of property tax amount) and potential capital gains tax of 10-22% when selling, depending on holding period and profit margins.

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

Is cash payment required or are mortgages available for foreign buyers in Busan?

Most foreign buyers in Busan pay cash due to severe limitations on mortgage availability for non-residents.

Cash payment is not legally required, but mortgage approval for foreigners is extremely difficult without Korean permanent residency or substantial local income documentation. International buyers who obtain financing typically need 30-50% down payments with variable interest rates and strict qualification requirements.

Local banks prefer lending to foreigners with established Korean credit histories, employment contracts with Korean companies, or significant asset deposits within South Korea. Even qualified applicants face limited loan-to-value ratios and shorter repayment terms compared to Korean citizens.

Some international banks with Korean operations may offer specialized mortgage products, but these typically require existing banking relationships and substantial documentation. Private financing through developers is occasionally available but usually comes with higher interest rates and shorter terms.

Foreign buyers seeking financing should engage specialist mortgage brokers experienced with international applicants and prepare for extensive documentation requirements. However, the cash payment route remains significantly more straightforward and faster for most international purchasers in the Busan market.

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. BambooRoutes - Can Americans Buy Property in South Korea
2. Zamin.uz - South Korea Property Restrictions
3. BambooRoutes - Moving to Korea Property Guide
4. Juwai Asia - Korea Property News
5. IMI Daily - South Korea Investment Scheme
6. One.uz - Property Restriction News
7. Korea JoongAng Daily - Foreign Property Ban
8. Global Property Guide - South Korea