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
South Korea's property market has undergone significant regulatory changes for foreign buyers since August 2025, and understanding these new rules is now essential before making any purchase decision.
This guide covers current housing prices in South Korea as of January 2026, along with the latest ownership restrictions, mortgage options, and step-by-step buying procedures that apply specifically to foreigners.
We constantly update this blog post to reflect the most recent policy changes and market conditions in South Korea's real estate sector.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in South Korea.
Insights
- Since August 2025, foreigners buying residential property in Seoul, most of Gyeonggi Province, and parts of Incheon must obtain a government permit before signing any purchase contract, and failing to do so makes the transaction legally invalid under South Korean law.
- Foreign buyers in the Seoul Metropolitan Area must now move into their purchased property within four months and live there for at least two years, which effectively ends the practice of foreign investment-only purchases in these zones.
- Officetels remain exempt from the new permit requirements, making them the only residential-style property type in Seoul that foreigners can still purchase purely for investment without residency obligations.
- Chinese nationals hold the largest share of foreign-owned properties in South Korea with over 56,000 units, followed by Americans with approximately 22,000 units as of late 2024.
- South Korea's mortgage interest rates currently sit around 3.5% to 4.5% for new loans in January 2026, though foreigners typically face stricter income verification and lower loan-to-value limits than Korean nationals.
- The jeonse deposit system, unique to South Korea, means buying a tenanted property often comes with an obligation to return hundreds of millions of won to the tenant when their lease ends, a risk many foreign buyers seriously underestimate.
- Total closing costs in South Korea typically range from 3.5% to 6.5% of the purchase price, with acquisition tax being the single largest component at rates from about 1% to 12% depending on property value and buyer circumstances.
- Outside the Seoul Metropolitan Area, cities like Busan, Daegu, and Jeju still follow the traditional 60-day post-purchase reporting system, making them significantly easier for foreigners to invest in as of January 2026.
What can I legally buy and truly own as a foreigner in South Korea?
What property types can foreigners legally buy in South Korea right now?
As of January 2026, foreigners can legally purchase apartments, officetels, villas, detached houses, and townhouses in South Korea, though the buying process and requirements now vary dramatically depending on where the property is located.
The most important condition to understand is that since August 2025, residential property purchases in the Seoul Metropolitan Area require foreigners to obtain a government permit before signing any contract, and buyers must commit to living in the property for at least two years.
Properties outside the designated permit zones, including cities like Busan, Daegu, and most of Jeju, still follow the older and simpler system where foreigners can buy freely and just need to report the purchase within 60 days.
Officetels throughout South Korea, including in Seoul, are exempt from the new permit requirements, which makes them the only residential-style property that foreigners can still purchase purely for investment purposes in the capital region.
Finally, please note that our pack about the property market in South Korea is specifically tailored to foreigners.
Can I own land in my own name in South Korea right now?
Yes, foreigners can own land in their own name in South Korea, and this right extends to both standalone parcels and the land share that comes with apartments and houses.
However, this applies broadly to most land types but not all, as certain categories like military facility protection zones, designated cultural heritage sites, and ecological conservation areas require special government permission before a foreigner can acquire them.
When buying a detached house or townhouse, you are purchasing both the building and the land underneath it, which means you are more likely to encounter location-based restrictions than when buying an apartment unit with a shared land component.
By the way, we cover everything there is to know about the land buying process in South Korea here.
As of 2026, what other key foreign-ownership rules or limits should I know in South Korea?
As of January 2026, the most significant rule affecting foreign buyers is the Foreign Land Transaction Permit requirement that took effect in August 2025, which designates nearly the entire Seoul Metropolitan Area as a zone where foreigners must get government approval before purchasing residential property.
South Korea does not have Thailand-style foreign ownership quotas for individual condo buildings, so there is no limit on how many units in a single apartment complex can be owned by foreigners.
Beyond the new permit requirement, foreigners bringing funds from overseas must work through a designated foreign exchange bank and comply with the Foreign Exchange Transactions Act, which requires documentation of the fund source and proper reporting of the international transfer.
The permit zone designation is currently set to run for one year from August 2025 to August 2026, but Korean authorities have indicated they may extend or modify the program depending on its effectiveness at stabilizing the housing market.
If you're interested, we go much more into details about the foreign ownership rights in South Korea here.
What's the biggest ownership mistake foreigners make in South Korea right now?
The biggest mistake foreigners make in South Korea right now is attempting to purchase residential property in the Seoul Metropolitan Area without first obtaining the required government permit, which makes the entire purchase contract legally invalid and can result in fines of up to 10% of the property value.
If a buyer proceeds without the permit, the transaction can be cancelled entirely, and the buyer may lose their deposit while facing repeated administrative penalties that can add up quickly.
Other classic pitfalls include underestimating jeonse tenant deposit obligations, which can require you to have hundreds of millions of won available to return when the lease ends, as well as buying villas or older apartments with illegal modifications that only become apparent during renovation or resale.
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in South Korea?
Do I need a specific visa to buy property in South Korea right now?
In January 2026, you do not need a special property-buyer visa to purchase real estate in South Korea, and even tourists can technically buy property, though the practical requirements differ significantly between the Seoul Metropolitan Area and the rest of the country.
The biggest administrative barrier for buyers without local residency is that the new permit zones in Seoul, Gyeonggi, and Incheon require you to commit to moving in within four months and residing for two years, which effectively requires some form of residence status to comply.
For most foreign buyers, obtaining some form of Korean identification number is necessary to complete the purchase registration and handle tax obligations, though non-residents can work through the process with proper documentation and bank coordination.
A typical document set for foreign buyers includes your passport, proof of funds (with foreign exchange documentation if bringing money from abroad), and any identification number issued by Korean authorities, plus the permit approval if buying in a designated zone.
Does buying property help me get residency and citizenship in South Korea in 2026?
As of January 2026, buying a regular apartment, villa, or house in South Korea does not automatically grant you residency or citizenship, and standard residential property purchases have no direct immigration benefit.
South Korea does have a limited investment immigration pathway, but it is narrowly focused on designated tourism and leisure facility investments, often connected to specific development zones like Jeju, rather than ordinary housing purchases.
For those seeking other routes, South Korea offers various long-term visa options based on employment, business, family ties, or specialized skills, but property ownership alone is not a qualifying factor under most immigration categories.
We give you all the details you need about the different pathways to get residency and citizenship in South Korea here.
Can I legally rent out property on my visa in South Korea right now?
Your visa status in South Korea affects how your rental income is taxed rather than whether you can legally rent out a property you own, meaning property ownership and rental rights are generally separate from your immigration classification.
You do not need to live in South Korea to rent out property there, but non-resident owners face different tax treatment and typically need a local representative or property manager to handle tenant relations, banking, and maintenance.
The most important detail for foreigners renting out property in South Korea is understanding the jeonse system, where tenants pay a large refundable deposit instead of monthly rent, because as the owner you must plan financially for returning that deposit when the lease ends.
We cover everything there is to know about buying and renting out in South Korea here.
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How does the buying process actually work step-by-step in South Korea?
What are the exact steps to buy property in South Korea right now?
The typical sequence to buy property in South Korea involves finding your property, signing the sale contract with an initial deposit, obtaining any required permits (if in a designated zone), handling foreign exchange compliance for overseas funds, paying the balance on the closing date, and then registering the ownership transfer at the registry office.
You do not always need to be physically present in South Korea for every step, as many transactions can be completed through a representative with a properly prepared power of attorney, though being present reduces friction and speeds up the process.
The step that makes the deal legally binding is signing the sale-purchase contract and paying the initial deposit, which typically amounts to around 10% of the purchase price and commits both parties to completing the transaction.
From accepted offer to final registration, a typical South Korea property purchase takes approximately 30 to 60 days, though transactions requiring permits in the Seoul Metropolitan Area may take longer due to the approval process.
We have a document entirely dedicated to the whole buying process our pack about properties in South Korea.
Is it mandatory to get a lawyer or a notary to buy a property in South Korea right now?
Using a lawyer or notary is not strictly mandatory for property purchases in South Korea, as licensed real estate agents commonly handle the transaction paperwork, but for foreigners it is often practically wise to engage legal support for complex situations.
The key difference in South Korea is that real estate agents focus on transaction facilitation and contract paperwork, while lawyers provide an additional layer of protection by reviewing legal risks, checking for issues in title history, and advising on tax implications specific to your situation.
If you engage a lawyer, make sure their scope explicitly includes reviewing the registry record for encumbrances, confirming any tenant deposit obligations, and verifying that the building use classification matches your intended purpose.
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 checks should I run so I don't buy a problem property in South Korea?
How do I verify title and ownership history in South Korea right now?
The official source for verifying title and ownership in South Korea is the real estate registry maintained by local registry offices, which records all property ownership, transfers, and registered rights.
The key document to request is the registry record, called the deunggibu deungbon in Korean, which shows the current owner, the property details, and any registered mortgages, seizures, or other encumbrances.
A realistic look-back period for ownership history checks in South Korea is typically 10 to 20 years, though for older properties or those with complicated histories, reviewing the full available record is advisable.
One clear red flag that should stop or pause a purchase is finding an undisclosed mortgage, seizure order, or legal dispute noted in the registry that the seller did not mention, as this indicates either deception or complications that could affect your ownership.
You will find here the list of classic mistakes people make when buying a property in South Korea.
How do I confirm there are no liens in South Korea right now?
The standard way to confirm there are no liens or encumbrances on a property in South Korea is to pull the latest registry record right before signing and again right before closing, as new entries can be registered at any time.
One common type of encumbrance to specifically ask about in South Korea is tenant jeonse deposit protection, which may not always appear in the registry but represents a significant financial obligation that transfers to the new owner.
The best proof of lien status is a freshly issued registry record dated within days of your transaction, as this official document from the registry office shows all registered mortgages, seizures, and other claims against the property.
How do I check zoning and permitted use in South Korea right now?
The authority for checking zoning and permitted use in South Korea is the local district office where the property is located, which can provide the building register and land use classification documents.
The single document that typically confirms zoning classification is the building register, which shows the official designated use of the building and whether it is classified as residential, commercial, or mixed.
A common zoning pitfall that foreign buyers frequently miss in South Korea is purchasing an officetel marketed as residential housing without realizing it may have different tax treatment, management rules, or rental restrictions than a true residential apartment.
Buying real estate in South Korea can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in South Korea, and on what terms?
Do banks lend to foreigners for homes in South Korea in 2026?
As of January 2026, yes, South Korean banks do lend to foreigners for home purchases, though the screening is typically stricter than for Korean nationals, and recent household debt tightening measures have reduced maximum borrowing amounts.
Foreign borrowers most commonly see loan-to-value ratios in the range of 40% to 60%, which is more conservative than the limits available to Korean first-home buyers who may access higher percentages through policy mortgage programs.
The single most common eligibility requirement that determines whether a foreigner qualifies is having verifiable Korean-source income or stable employment in South Korea, as banks want to see local debt-servicing capacity rather than relying solely on overseas assets.
You can also read our latest update about mortgage and interest rates in South Korea.
Which banks are most foreigner-friendly in South Korea in 2026?
As of January 2026, the most foreigner-friendly banks for mortgages in South Korea are KB Kookmin Bank, Shinhan Bank, and Hana Bank, with Woori Bank and NH NongHyup Bank also being commonly used by foreign buyers.
The feature that makes these banks more foreigner-friendly is their established foreign-language support at major branches, dedicated international banking desks, and experience processing documentation from overseas buyers.
These major banks can sometimes lend to non-residents, but the terms are significantly more restrictive, often requiring larger down payments, co-signers, or additional collateral compared to buyers with Korean residency and local income.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in South Korea.
What mortgage rates are foreigners offered in South Korea in 2026?
As of January 2026, mortgage interest rates for foreigners in South Korea typically range from about 3.5% to 5%, with the exact rate depending on the loan product type, your credit profile, and whether you qualify for any policy-linked programs.
Fixed-rate mortgages in South Korea generally carry slightly higher initial rates than variable-rate products, with the gap typically running 0.3 to 0.7 percentage points, though fixed rates provide protection against future rate increases that variable products do not.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in South Korea?
What are the total closing costs as a percent in South Korea in 2026?
The typical total closing cost for buying property in South Korea in 2026 runs between 3.5% and 6.5% of the purchase price, with most transactions falling toward the middle of that range.
The realistic low-to-high range varies because acquisition tax rates scale with property value and buyer circumstances, ranging from around 1% for standard purchases up to 12% for multi-home buyers in certain regulated situations.
The specific fee categories making up closing costs in South Korea include acquisition tax plus local surtaxes, brokerage commission, registration fees, stamp duty, and administrative certificate costs.
The single biggest contributor to closing costs in South Korea is acquisition tax, which typically accounts for more than half of the total closing costs and can be the largest single payment after the property price itself.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in South Korea.
What annual property tax should I budget in South Korea in 2026?
As of January 2026, a typical annual property tax budget for a standard owner-occupied home in South Korea is 0.15% to 0.35% of the property value per year, which translates to roughly 500,000 to 2,000,000 Korean won (approximately $350 to $1,400 USD or 320 to 1,300 EUR) for a mid-range apartment.
Annual property tax in South Korea is assessed based on the officially determined value of the property rather than the purchase price, with rates applied to this assessed value according to thresholds, and high-value property owners may also face an additional national comprehensive real estate holding tax.
How is rental income taxed for foreigners in South Korea in 2026?
As of January 2026, the effective tax rate on rental income for foreigners in South Korea depends heavily on whether you qualify as a tax resident, with residents facing progressive income tax rates ranging from 6% to 45% and non-residents typically facing withholding rates around 20% on gross rental income.
The basic requirement is that non-resident owners usually have tax withheld at source by their property manager or tenant, while resident taxpayers must file annual income tax returns that include rental income along with their other Korean-source earnings.
What insurance is common and how much in South Korea in 2026?
As of January 2026, the typical annual insurance premium for a standard home policy in South Korea ranges from about 150,000 to 600,000 Korean won (approximately $105 to $420 USD or 95 to 385 EUR), depending on coverage level and property characteristics.
The most common type of property insurance coverage that owners carry in South Korea is fire and property damage insurance, which is often required by mortgage lenders and covers the basic structural risks.
The biggest factor that makes insurance premiums higher or lower for the same property type in South Korea is the age of the building, with older structures commanding higher premiums due to increased fire risk and potential structural issues.
Get the full checklist for your due diligence in South Korea
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about South Korea, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| InvestKOREA | Official Korean government investment agency that summarizes the governing legal framework for foreigners. | We used it to establish which statutes apply to foreigners buying property. We cross-checked its claims against official statute databases and Seoul's municipal guidance. |
| Seoul Metropolitan Government | Official city government guide explaining practical steps foreigners must follow. | We used it to structure the step-by-step buying process and key filing deadlines. We triangulated deadlines with statute text where possible. |
| KLRI (Korean Law Information Center) | Official repository for Korean statutes in English, widely used by legal professionals. | We used it to confirm the legal duty to report acquisition and the 60-day timeline. We treated it as the source of truth for legal obligation wording. |
| Bank of Korea | Central bank and primary authority on foreign exchange rules and monitoring. | We used it to explain why bank reporting exists when money comes from abroad. We combined it with government guides to describe the designated FX bank step. |
| Korea Housing Finance Corporation | Government-backed housing finance institution publishing official mortgage rate schedules. | We used it as a credible interest-rate anchor for January 2026. We built a realistic rate range based on their published fixed-rate products. |
| Korea Visa Portal | Korean government's official visa portal in English covering immigration programs. | We used it to confirm what investment immigration channels exist. We paired it with Ministry of Justice materials to avoid relying on private sources. |
| KED Global | Reputable Korean business news source reporting on regulatory changes with primary-source detail. | We used it to document the August 2025 permit zone designation and its specific requirements. We verified the details against other news sources. |
| Reuters | Global wire service with strong editorial standards and primary-source sourcing. | We used it to highlight that some locations require prior permission during certain periods. We used it for market and regulatory context, not as a substitute for law. |
| Seoul Brokerage Fee Guide | Official city guide referencing the legal cap framework for brokerage fees. | We used it to estimate agent commission ranges for closing-cost calculations. We avoided unreliable private calculators in favor of this official source. |
| National Tax Service | Official tax authority for national taxes including income tax and rental taxation. | We used it to ground tax discussions in the correct authority. We directed readers to official filing guidance for their specific situations. |
| PwC Tax Summaries | Major international accounting firm providing reliable tax residency guidance. | We used it to explain the resident versus non-resident tax classification framework. We applied their definitions to rental income and property tax contexts. |
| Chosunbiz | Major Korean business media outlet tracking bank mortgage rates and lending policies. | We used it to identify current mortgage rate levels at major banks. We triangulated their reporting with official Bank of Korea data for accuracy. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.