When a foreigner acquires land in Korea, the applicable laws and procedures vary depending on the purpose of acquisition, residency status, and whether the purchaser is an individual or a corporation. If the acquisition is for commercial purposes (e.g., real estate rental), additional foreign investment reporting procedures must be followed along with the real estate acquisition report. If the foreigner is classified as a non-resident under the Foreign Exchange Transactions Act, an additional real estate acquisition report is required.
1. Foreign-Invested Enterprises
If a foreigner establishes a domestic corporation (foreign-invested enterprise) under the Foreign Investment Promotion Act to engage in commercial activities in Korea and acquires real estate in the name of the corporation (e.g., purchasing office buildings, acquiring factory land), the Act on Report on Real Estate Transactions, the Foreign Investment Promotion Act, and the Real Estate Registration Act apply. However, if the foreigner sets up a branch office, the Foreign Investment Promotion Act does not apply. Instead, they must report the establishment of the branch to a foreign exchange bank, register the branch, and then purchase real estate in the name of the branch.
Procedures
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Report and register foreign investment at the main branch of a foreign exchange bank or KOTRA.
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Sign the real estate acquisition contract and make the payment.
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Report the real estate acquisition to the government office at the location of the property (within 60 days from the contract date, contract required).
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Register the property at the local registry office in the jurisdiction where the land is located.
2. Resident Foreigners
For resident foreigners purchasing residential apartments or acquiring real estate through the domestic branch of a foreign corporation, there is no need to follow the reporting procedures under the Foreign Exchange Transactions Act. Instead, they must report to the relevant city, county, or district office within 60 days after the purchase contract and complete the ownership transfer registration. The Act on Report on Real Estate Transactions and the Real Estate Registration Act apply in this case.
Procedures
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Sign the real estate acquisition contract and make the payment.
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Report the real estate acquisition to the government office at the location of the property (within 60 days from the contract date, contract required).
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Register the property at the local registry office in the jurisdiction where the land is located.
3. Non-Resident Foreigners
Non-resident foreigners must report the acquisition of real estate to the head of a foreign exchange bank in accordance with the Foreign Exchange Transactions Act when bringing in the acquisition funds. After that, they must report the real estate acquisition to the relevant city, county, or district office and complete the ownership transfer registration according to the Act on Report on Real Estate Transactions. The Act on Report on Real Estate Transactions, the Foreign Exchange Transactions Act, and the Real Estate Registration Act apply.
Procedures
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Sign the real estate acquisition contract
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Report real estate acquisition at the main/branch office of a foreign exchange bank:
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When to Report: At the time of withdrawing funds for real estate acquisition.
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Required Documents: Real estate acquisition contract, real estate appraisal report or official land price certificate, real estate registration certificate.
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Report the real estate acquisition to the government office at the location of the property (within 60 days from the contract date, contract required).
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Application for Real Estate Registration Number:
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Individual: Seoul Immigration Office (land acquisition report certificate, copy of passport)
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Corporation: City/county/district office where the property is located (land acquisition report certificate, corporate registration certificate issued in the home country, documents verifying the representative's address, etc.)
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If applying through a representative, an ID for nationality verification of the representative and a power of attorney notarized by a notary public in the home country are required.
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Register the property at the local registry office in the jurisdiction where the land is located.
4. Permanent Residents
Permanent residents who hold Korean nationality are treated the same as domestic citizens and are exempt from the real estate acquisition reporting requirements under the Foreign Exchange Transactions Act, regardless of their residency in Korea. The Act on Report on Real Estate Transactions and the Real Estate Registration Act apply.
Procedures
•
Sign the real estate acquisition contract and make the payment.
•
Report the real estate acquisition to the government office at the location of the property (within 60 days from the contract date, contract required).
•
Register the property at the local registry office in the jurisdiction where the land is located.
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