How to move to South Korea and buy a property?

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 South Korea. 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 easy is it compared to Western countries to move to South Korea and buy property?

Moving to South Korea and buying property as a foreigner is significantly more challenging than in most Western countries as of September 2025.

South Korea now requires foreigners to obtain prior government approval before purchasing residential properties in Seoul, parts of Gyeonggi Province, and Incheon. This approval process includes demonstrating that the purchase is for personal residence only, not investment purposes. Additionally, buyers must commit to moving into the property within four months and residing there for at least two years.

In contrast, Western countries like the United States, United Kingdom, Canada, and Australia generally allow foreign buyers to purchase real estate without mandatory residence requirements or prior approval for most property types. While some Western countries have implemented foreign buyer taxes or cooling-off periods, none impose the strict residency obligations that South Korea now enforces.

The penalties for non-compliance in South Korea are substantial, with fines up to 10% of the purchase price and potential contract nullification. This makes South Korea's current foreign property ownership regime among the most restrictive in developed countries.

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

What types of properties can foreigners actually buy, and what are the restrictions?

Foreigners can purchase most residential property types in South Korea, but face significant restrictions in major metropolitan areas.

The allowable property types include apartments, detached houses, townhouses, multi-family homes, and land. However, in the newly restricted zones covering Seoul, much of Gyeonggi Province, and Incheon, foreigners can only purchase these properties for personal residence, not for investment or rental purposes.

"Officetels" - studio-style buildings that combine business and residential functions - remain exempt from the new restrictions and can still be purchased for investment purposes. These hybrid properties are popular among foreign investors who want to maintain rental income potential.

Land purchases may require additional government approval, particularly in areas designated as military zones or cultural heritage sites. The approval process for land can be more complex and time-consuming than for built properties.

In areas outside the restricted zones, such as Jeju Island, Busan, and other smaller cities, foreigners retain more flexibility to purchase properties for investment purposes without the mandatory residence requirements.

What's the step-by-step process for purchasing real estate in South Korea as a foreigner?

The property purchase process for foreigners involves eight critical steps, with government approval being the most complex stage.

Step 1 involves comprehensive research and due diligence to identify suitable properties, check for liens, verify clear title, assess location restrictions, and confirm the seller's ownership status. Step 2 requires engaging a licensed real estate agent, which is highly recommended for language support and local legal assistance.

Step 3 focuses on securing financing if needed, as foreigners are eligible for mortgages up to 60% of property value, though local rates and approval processes apply. Step 4 involves signing a pre-sale agreement and negotiating terms with the seller.

Step 5 is the government approval stage, which applies only in restricted zones. Buyers must apply for prior approval at the local government office and submit comprehensive source of funds documentation. Step 6 requires filing a land acquisition report within 30 to 60 days of signing the contract.

Step 7 covers final payment and transfer, including settling all taxes and fees, completing the sale, and obtaining the registration certificate. Step 8 mandates that buyers move into the property within four months and reside there for two years in restricted zones.

What documents and permits do you need to complete the process?

Foreign buyers need five essential document categories to complete a South Korean property purchase.

1. **Identity Documentation**: Valid passport or Alien Registration Card for foreigners residing in Korea2. **Tax Documentation**: Taxpayer ID and proof of tax residency from your home country3. **Legal Registration**: Land acquisition report and property registration documentation filed with local authorities4. **Financial Proof**: Comprehensive proof of funds or financing plan, especially crucial for overseas fund transfers5. **Approval Documentation**: Signed contracts and government approval documentation specifically required for restricted permit zones

The government approval documentation is particularly critical in Seoul, Gyeonggi, and Incheon areas, where buyers must demonstrate the residential nature of their purchase and provide detailed financial background information.

All foreign-language documents typically require official translation into Korean and notarization. The land acquisition report must be filed within the specified timeframe to avoid legal complications.

Can you buy a property without being physically in the country?

Yes, foreigners can technically purchase South Korean property remotely through legal representation, but the mandatory residence requirements make this approach highly risky.

Remote purchases are possible by appointing a legal representative or granting power of attorney to handle the transaction on your behalf. This process involves extensive documentation and legal procedures to ensure the representative can act on your behalf for all aspects of the purchase.

However, in restricted zones covering Seoul, Gyeonggi, and Incheon, buyers must physically move into the property within four months of purchase or risk contract nullification and substantial fines. This residency requirement effectively eliminates the practical benefits of remote purchasing for most foreign buyers.

The two-year residency obligation further complicates remote purchases, as buyers must maintain actual residence in the property, not just legal ownership. Violation of these requirements can result in fines up to 10% of the purchase price and potential contract cancellation.

Remote purchasing may remain viable for properties in non-restricted areas like Jeju Island or smaller cities where residency requirements don't apply.

How reliable are real estate agents, and what should you watch out for?

Licensed real estate agents in South Korea are generally reliable when working with established firms, but foreign buyers should take specific precautions.

Reputable agents provide valuable services including language support, local market knowledge, legal procedure guidance, and relationship management with government offices. However, foreign buyers should always verify agent credentials and registration status with local authorities.

Key warning signs include agents who quote significantly inflated prices compared to market rates, those who discourage independent legal consultation, or agents who rush buyers through the approval process without proper documentation review. Some agents may have undisclosed conflicts of interest or relationships with specific developers.

Foreign buyers should ensure their agent performs comprehensive due diligence on title searches, lien investigations, and legal compliance rather than rushing toward closing. The agent should also be transparent about all legal requirements, especially the new residency obligations in restricted zones.

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

Will the legal system protect a foreign buyer, and what safeguards are in place?

South Korea's legal system provides comparable property rights protection to foreigners and citizens, with robust contract enforcement mechanisms.

Foreign property owners enjoy the same rights as Korean citizens to lease, sell, develop, and transfer their properties, subject to the same zoning and development regulations. The Korean legal system recognizes and enforces property contracts, providing legal recourse for breach of contract or fraud.

However, the legal system also strictly enforces the new foreign ownership regulations, including automatic contract nullification for buyers who fail to obtain proper approvals or meet residency requirements. This creates a double-edged protection where compliance brings strong legal protection, but violations result in severe penalties.

The court system provides accessible dispute resolution mechanisms, and foreign buyers can pursue legal action against sellers, agents, or developers who violate contractual obligations. Property registration systems provide clear title documentation and ownership verification.

Title insurance and legal escrow services are available to provide additional transaction security, though these services add to overall purchase costs.

What are the common mistakes and pitfalls foreigners often make?

Foreign buyers typically make four critical errors that can result in significant financial losses and legal complications.

The most common mistake is failing to obtain required government approvals in restricted zones, which can lead to contract nullification and fines up to 10% of the purchase price. Many buyers underestimate the complexity and timeline for approval processes, leading to rushed decisions.

Inadequate due diligence on property title and existing liens represents another frequent pitfall. Foreign buyers often rely too heavily on agent representations without conducting independent legal verification of ownership, outstanding debts, or legal encumbrances on the property.

Non-compliance with residency requirements is increasingly problematic, as buyers purchase properties without fully understanding the mandatory four-month move-in period and two-year residence obligation. Some buyers attempt to circumvent these requirements through rental arrangements or minimal occupancy, risking penalties.

Finally, many foreign buyers underestimate the total legal, tax, and regulatory costs, failing to budget adequately for acquisition taxes, legal fees, approval costs, and potential penalty exposure. This leads to funding shortfalls during the purchase process.

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 taxes, fees, and additional costs should you expect, with a full breakdown?

Foreign buyers should budget 3-7% of the purchase price for mandatory taxes and fees, plus potential penalty exposure in restricted zones.

Cost Category	Rate/Amount	Notes
Acquisition Tax	1-4% of purchase price	Varies by property type and value
Special Rural Development Tax	Applied to acquisition tax base	Additional surtax on acquisition tax
Education Tax	Applied to acquisition tax base	Additional surtax on acquisition tax
Stamp Tax	Fixed fee for registration	Required for property registration
Registration Fee	0.2% of purchase price	Property title registration
Value-Added Tax (VAT)	10% on building value	Only if buying from company/developer
Real Estate Agent Fee	0.2-0.9% of purchase price	Varies by property value
Legal/Administrative Fees	Variable	Permit applications, translations
Violation Penalties	Up to 10% of purchase price	For non-compliance in restricted zones

Can foreigners pay in cash, or is financing necessary?

Foreigners can pay in cash for South Korean property purchases, but must comply with strict fund source documentation requirements.

Cash purchases require comprehensive documentation of fund sources, especially for international wire transfers exceeding certain thresholds. Buyers must provide bank statements, income verification, and explanations for the origin of funds to satisfy anti-money laundering regulations.

Large cash transactions from overseas may trigger additional scrutiny from financial authorities, requiring detailed documentation of the fund transfer process and tax compliance in the origin country. Some buyers find this documentation burden more complex than securing local financing.

Financing is not mandatory, but many foreign buyers choose mortgages to preserve liquidity and demonstrate financial stability to Korean authorities. The mortgage application process can actually simplify fund source documentation since Korean banks conduct their own due diligence.

Cash buyers should budget additional time and legal costs for preparing and translating the required financial documentation to support their purchase.

Is it possible to get a mortgage as a foreigner, and what are the usual rates, conditions, and tips to qualify?

Foreign buyers can obtain mortgages from Korean banks, typically up to 60% loan-to-value ratio, but face stricter qualification requirements than local buyers.

Korean banks generally require foreigners to demonstrate stable income within Korea or substantial assets to qualify for mortgages. Long-term visa holders or permanent residents have better approval chances and may access higher loan-to-value ratios.

Interest rates for foreign borrowers typically range from 3-6% annually, depending on the borrower's profile, loan terms, and banking relationship. Rates may be higher than those offered to Korean citizens, reflecting additional risk premiums.

Qualification requirements include proof of Korean income through employment or business operations, substantial down payment capacity (at least 40%), existing Korean banking relationships, and comprehensive documentation of global assets and income sources.

Tips for successful mortgage applications include establishing banking relationships before property shopping, maintaining Korean bank accounts with regular deposits, securing employment or business registration in Korea, and working with mortgage brokers who specialize in foreign borrower applications.

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

Does buying property offer any path toward residency or citizenship, and where do foreigners typically buy the most?

South Korea offers limited residency pathways through real estate investment, primarily through the F-2 long-term residency visa program.

The F-2 visa requires significant investment in specific urban development projects or designated investment zones, with minimum investment thresholds that vary by project and location. However, purchasing normal residential property does not automatically qualify buyers for residency or citizenship benefits.

Standard residential property purchases in Seoul, Busan, or other cities do not contribute toward residency qualification unless they meet specific investment criteria and are located within designated development zones. The investment amounts required typically exceed typical residential property values.

Foreign buyers most commonly purchase properties in Seoul's Gangnam, Yongsan, Seocho, and Songpa districts, though these areas are now subject to the strictest regulations. Jeju Island remains popular for vacation homes and investment properties due to more relaxed regulations.

Busan's development areas attract foreign investment, particularly in waterfront and commercial districts. Other popular locations include Incheon's international zones and selected areas in Gyeonggi Province, though many of these areas now fall under restricted zone regulations.

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. Korea JoongAng Daily - Nonresident foreigners banned from purchasing homes in Seoul
2. Zamin - South Korea to restrict home purchases for foreigners
3. The Hankyoreh - Foreign property purchase restrictions
4. Bloomberg - South Korea imposes curbs on foreigners buying homes in Seoul
5. BambooRoutes - South Korea real estate for foreigners
6. MultiLaw - Real Estate Guide South Korea
7. KED Global - South Korea regulations
8. Juwai Asia - South Korea property guide
9. Global Property Guide - South Korea buying guide
10. Korea Times - Korea moves to restrict foreigners real estate purchases