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South Korea has implemented strict new restrictions on foreign property purchases as of August 2025.
Foreigners can still legally buy residential property, but must now obtain government approval in Seoul, 23 Gyeonggi cities, and seven Incheon districts. After purchase, buyers must move in within four months and live there for at least two years without renting it out.If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Foreign property ownership in South Korea requires government approval in major metropolitan areas since August 2025.
Buyers must reside in the property for two years minimum and face potential fines up to 10% of property value for non-compliance.
| Aspect | Restriction Level | Details |
|---|---|---|
| Purchase Approval | Required | Government approval needed in Seoul, 23 Gyeonggi cities, 7 Incheon districts |
| Residency Requirement | Mandatory | Must move in within 4 months, live there 2+ years |
| Property Types | Most Restricted | Apartments, houses, townhouses covered; some officetel exempt |
| Rental During Period | Prohibited | Cannot rent out property during mandatory 2-year residence |
| Financing Access | Limited | Stricter LTV ratios and higher down payments required |
| Penalties | Severe | Fines up to 10% of property value or contract cancellation |
| Resale Rights | Allowed | Can resell freely after completing residency requirement |
Can foreigners legally purchase residential property in South Korea?
Yes, foreigners can legally purchase residential property in South Korea, but significant new restrictions took effect in August 2025.
The South Korean government now requires non-resident foreigners to obtain approval before buying homes in Seoul, 23 cities in Gyeonggi Province, and seven districts in Incheon. This covers nearly all major metropolitan areas where most foreign investment occurs.
After purchasing property in these designated areas, foreign buyers must move into the property within four months of completing the transaction. They must then reside in the property for at least two consecutive years without renting it out to tenants.
Violations of these requirements can result in fines up to 10% of the property's purchase value or potential cancellation of the entire transaction. The government implemented these measures to cool down the overheated Seoul metropolitan real estate market.
It's something we develop in our South Korea property pack.
Are there restrictions on the type of property foreigners can buy?
The new restrictions apply to nearly all types of residential property that foreigners typically purchase in South Korea.
Covered property types include apartments, multi-story residential buildings, townhouses, and private single-family houses. The restrictions focus specifically on residential properties rather than commercial real estate.
Officetel units, which are studio apartments that can be used for both residential and business purposes, are currently exempt from the restrictions in some zones. However, this exemption may change as regulations continue to evolve.
Properties designated for commercial use, agricultural land, or areas near military installations may require additional special permissions beyond the standard approval process. Farmland ownership is particularly restricted and typically requires the foreign owner to actively cultivate the land.
Is there a maximum size or land area a foreigner can own?
South Korea does not impose specific square footage limits on individual property purchases by foreigners.
However, foreigners may generally be limited to owning up to 50% of the total area in a given condominium or residential complex. This prevents foreign buyers from acquiring dominant control over entire residential developments.
For farmland specifically, foreign ownership is only permitted if the buyer directly cultivates the agricultural land. Speculative farmland purchases by non-farming foreigners are prohibited.
Areas near military bases or other nationally sensitive locations have much stricter ownership limits, with most such properties completely off-limits to foreign buyers regardless of size.
Are there specific regions where foreign property ownership is limited?
The strictest foreign ownership restrictions apply to South Korea's most economically important metropolitan areas.
Seoul, South Korea's capital and largest city, requires government approval for all foreign residential property purchases as of August 2025. This covers all 25 districts within Seoul's boundaries.
In Gyeonggi Province, which surrounds Seoul, 23 cities now require foreign buyer approval. Seven districts in Incheon, South Korea's third-largest city and location of the main international airport, also have the new restrictions.
Combined, these restrictions cover virtually all of the Seoul Capital Area, which houses roughly half of South Korea's population and generates about 50% of the country's GDP. Properties near military installations or in other nationally sensitive areas remain off-limits to foreign ownership regardless of location.
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Do foreigners need government approval before completing a property purchase?
Government approval is now mandatory for foreign property purchases in designated metropolitan areas as of August 2025.
Foreign buyers must apply for and receive approval from local government authorities before they can legally complete a property transaction in Seoul, the 23 restricted Gyeonggi cities, and seven Incheon districts.
After completing the purchase, foreigners must file a transaction report along with a detailed financing plan within 30 days of the closing. This report must demonstrate how the buyer plans to finance the property and comply with residency requirements.
Failure to obtain proper approval or file required reports can result in the transaction being declared null and void. The approval process can add several weeks or months to the typical property purchase timeline.
Properties outside the designated metropolitan areas currently do not require special government approval, though standard registration and reporting requirements still apply.
Are there extra taxes or fees for foreign buyers?
Foreigners pay the same basic property transaction taxes as South Korean citizens when purchasing real estate.
Standard taxes include acquisition tax (typically 1-3% of property value), registration tax (around 0.2%), and eventual capital gains tax when selling. There are no additional taxes specifically imposed on foreign buyers.
However, anti-speculation taxes or surcharges may apply under certain conditions, such as purchasing multiple properties or buying in areas designated as speculation zones. These additional taxes can apply to both foreign and domestic buyers.
Legal and administrative costs for obtaining government approval may be higher for foreign buyers due to additional documentation and translation requirements. Attorney fees for navigating the approval process can range from â‚©2-5 million ($1,500-3,800).
Is financing available for foreigners, and what are the loan-to-value limits?
Traditional mortgage financing is available to foreigners in South Korea, but with significantly stricter terms than for domestic buyers.
South Korean banks typically offer lower loan-to-value (LTV) ratios to foreign buyers compared to citizens. While Korean citizens might access 70-80% LTV mortgages, foreigners often face caps of 50-60% LTV, requiring much larger down payments.
Banks require foreign borrowers to provide extensive documentation of stable income, employment history, and credit worthiness. The approval process can take 2-3 months compared to 3-4 weeks for domestic borrowers.
Interest rates for foreign buyers are typically 0.5-1.0 percentage points higher than rates offered to Korean citizens. As of September 2025, foreign buyer mortgage rates range from 4.5-6.5% depending on the bank and borrower qualifications.
It's something we develop in our South Korea property pack.
Are there residency or visa requirements tied to property ownership?
Property ownership does not automatically grant residency rights or visa benefits in South Korea.
The new regulations require foreign buyers in designated areas to physically reside in their purchased property for at least two consecutive years, but this residency requirement is separate from legal immigration status.
Foreign property owners must still maintain valid visas or immigration status through other means, such as work visas, student visas, or marriage-based residency. Property ownership alone does not provide a pathway to permanent residency or citizenship.
The mandatory two-year residency period is strictly enforced through government monitoring and can result in significant penalties if not completed. However, fulfilling this requirement does not confer any special immigration advantages beyond avoiding the associated fines.
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Can foreigners freely resell property and repatriate profits?
Foreigners can freely resell their South Korean property after completing the mandatory residency requirements.
For properties purchased under the new restrictions, foreign owners must complete their two-year residency obligation before selling. Attempting to sell before completing this requirement can result in penalties or complications with the sale.
There are no restrictions on repatriating sale proceeds from South Korean property back to the owner's home country. The government allows free movement of capital for legitimate property transactions.
Foreign sellers must pay standard capital gains tax on any profit from the sale, calculated the same way as for Korean citizens. Capital gains tax rates range from 6-45% depending on the holding period and property type.
All tax obligations and reporting requirements must be satisfied before repatriating funds, but the process is generally straightforward for compliant property sales.
Does property ownership grant any immigration benefits?
Property ownership in South Korea does not provide any special immigration advantages, residency permits, or visa benefits.
Unlike some countries that offer investor visas or residency programs for property buyers, South Korea maintains a strict separation between real estate ownership and immigration status.
Foreign property owners must maintain their legal status in South Korea through traditional visa categories such as work permits, student visas, or family reunification visas. Property ownership cannot substitute for or supplement these requirements.
The government has not indicated any plans to introduce property-based investment visa programs, focusing instead on restricting rather than encouraging foreign property investment in major metropolitan areas.
Are inheritance and gift rules the same for foreigners?
Inheritance and gift tax rules for property apply equally to foreign and Korean property owners.
Foreign heirs receiving South Korean property through inheritance are subject to the same inheritance tax rates and procedures as Korean citizens. Tax rates range from 10-50% depending on the relationship to the deceased and the property value.
Property gifts between foreign individuals or from Koreans to foreigners face the same gift tax rates, typically 10-50% based on the property value and relationship between parties.
Foreign heirs may need to obtain the same government approvals required for new purchases if they inherit property in restricted metropolitan areas. The residency requirements may also apply to inherited properties in some cases.
It's something we develop in our South Korea property pack.
What are average property prices in major South Korean cities?
| City | Average Apartment Price | USD Equivalent |
|---|---|---|
| Seoul | â‚©1.2-1.4 billion | $900,000-$1,050,000 |
| Busan | â‚©600-700 million | $450,000-$525,000 |
| Incheon | â‚©500-700 million | $375,000-$525,000 |
| Daegu | â‚©400-500 million | $300,000-$375,000 |
| Daejeon | â‚©350-450 million | $260,000-$340,000 |
| Gwangju | â‚©300-400 million | $225,000-$300,000 |
| Ulsan | â‚©350-450 million | $260,000-$340,000 |
Seoul property prices rank among the highest in Asia, with moderate apartments in desirable neighborhoods often exceeding â‚©1.5 billion ($1.1 million). The capital region's restricted supply and high demand continue driving price appreciation.
Busan, South Korea's second-largest city and major port, offers more affordable options while still providing urban amenities and employment opportunities. Coastal properties in Busan command premium prices due to ocean views and beachfront access.
For foreign buyers, the effective cost is higher due to stricter financing terms requiring larger down payments, typically 40-50% of the purchase price rather than the 20-30% available to Korean citizens.
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.
Foreign property ownership in South Korea has become significantly more complex since August 2025, with mandatory government approval and residency requirements in major metropolitan areas.
While foreigners can still legally purchase residential property, the new restrictions make investment-focused purchases much more challenging and expensive, particularly in Seoul and surrounding regions where most demand exists.
Sources
- Korea JoongAng Daily - Nonresident Foreigners Banned from Purchasing Homes in Seoul
- Zamin - South Korea to Restrict Home Purchases for Foreigners
- One.uz - Restriction on Foreigners Buying Property in South Korea
- Bloomberg - South Korea Imposes Curbs on Foreigners Buying Homes in Seoul
- IMI Daily - South Korea Imposes Conditional Ban on Foreign Property Purchases
- Generis Online - Understanding Foreign Ownership of Property in South Korea
- KOTRA - Foreign Investment Guide
- BambooRoutes - South Korea Real Estate for Foreigners