Most foreign buyers who start their Korea property search do not know about the permit zone rule that took effect in August 2025. In Seoul and most of the Gyeonggi and Incheon metro area, you now need government approval before signing a contract. Miss this step and the contract may be void.
This guide covers what you need to know: who can buy, the permit zone rule, the two filings after you sign, the purchase process from contract to registration, taxes, mortgages, and due diligence.
Can foreigners buy property in Korea?
Yes. Korea has no general ban on foreign property ownership. The right to buy derives from the Real Estate Transaction Reporting Act (부동산 거래신고 등에 관한 법률). The Act imposes reporting and, in designated areas, permit requirements, but not a blanket ownership restriction.
There are three extra steps for foreign buyers on top of the standard buying process:
- A prior permit in designated zones (before signing any contract in Seoul, most of Gyeonggi, and much of Incheon, through August 25, 2027).
- A real estate transaction report (부동산 거래신고) filed within 30 days of signing, which for foreign buyers now includes extra items (visa type, address, 183-day stay).
- A foreign exchange report (외국환거래 신고) to a foreign exchange bank if you are a non-resident bringing purchase funds from overseas.
The standard buying steps (contract, payment stages, title registration, taxes) are covered below and apply to everyone.
One note on property types: if the land is in a military base protection zone or another defense-related area set by presidential decree (such as some islands and land near military units or key national facilities), a designated cultural heritage or natural monument protection area, an ecosystem and landscape conservation area, or a special wildlife protection zone, a foreign buyer needs a separate land acquisition permit from the city, county, or district office before signing, under Article 9 of the Real Estate Transaction Reporting Act. A contract signed without that permit is void. If you are considering property in or near such areas, consult a licensed attorney or the relevant ministry before proceeding.
The 2025 permit zone: what it is and who it affects
What changed in August 2025
Before August 26, 2025, foreign buyers could sign a contract anywhere in Korea and then file a report afterward. That system still applies outside the designated zones.
Inside the designated zones, the process is now reversed: you must apply for and receive a Land Transaction Permission Certificate (토지거래허가증) before signing any contract. This was announced by the Ministry of Land, Infrastructure and Transport (MOLIT) as Announcement No. 2025-1058.
On August 20, 2026, MOLIT re-designated the same zone under Notice No. 2026-1105 (국토교통부공고 제2026-1105호). The new period runs from August 26, 2026 through August 25, 2027. The covered areas and property types did not change. MOLIT can extend or change the zone, so check the current status at molit.go.kr before you sign.
A second, overlapping designation applies to apartments in parts of Seoul and Gyeonggi. MOLIT issued Announcement No. 2025-1219 on October 15, 2025, effective October 20, 2025. This Layer 2 designation covers apartment (아파트) purchases in all 25 Seoul districts and 12 Gyeonggi cities and districts: Gwangmyeong (광명), Gwacheon (과천), Uiwang (의왕), Hanam (하남), three districts of Suwon (수원 장안, 영통, 팔달), three districts of Seongnam (성남 수정, 중원, 분당), Yongin Suji (용인 수지), and Anyang Dongan (안양 동안). Townhouses (연립주택) and multi-unit residences (다세대주택) are covered only when they sit in one of the mixed apartment complexes the notice lists. Layer 2 runs through December 31, 2026. If you are buying an apartment in any of those Seoul or Gyeonggi areas, you are subject to both designations. Layer 2 ends before Layer 1. After December 31, 2026, apartments in those areas still need a permit under Layer 1 through August 25, 2027. Verify current status for both designations at the Seoul land portal (land.seoul.go.kr) or molit.go.kr before proceeding.
Which areas are covered
The designated zone includes:
- All 25 districts (구) of Seoul.
- 23 cities and counties in Gyeonggi Province, including Suwon, Seongnam, Goyang, and Pyeongtaek. Excluded Gyeonggi areas: Yangju, Icheon, Uijeongbu, Dongducheon, Yangpyeong, Yeoju, Gapyeong, and Yeoncheon (eight in total).
- Eight districts of Incheon: Gyeyang (계양), Namdong (남동), Michuhol (미추홀), Bupyeong (부평), Yeonsu (연수), Seohae (서해), Geomdan (검단), and Yeongjong (영종), plus part of Jemulpo-gu (제물포구). This is the same area as in 2025. The 2026 notice uses the new Incheon district names that took effect in July 2026. Excluded Incheon areas: Ganghwa, Ongjin, and the rest of Jemulpo-gu.
The Layer 2 apartment-specific designation (Announcement No. 2025-1219, through December 31, 2026) covers all 25 Seoul districts and 12 Gyeonggi cities and districts: Gwangmyeong (광명), Gwacheon (과천), Uiwang (의왕), Hanam (하남), three districts of Suwon (수원 장안, 영통, 팔달), three districts of Seongnam (성남 수정, 중원, 분당), Yongin Suji (용인 수지), and Anyang Dongan (안양 동안). No Incheon areas are included in Layer 2.
Who is affected
The permit requirement covers "foreigners etc." under Article 2(4) of the Real Estate Transaction Reporting Act: people without Korean nationality, entities set up under foreign law, entities where foreigners make up at least half of the members or of the executives, entities where foreigners hold at least half of the capital or voting rights, foreign governments, and international organizations.
Which property types are covered
The permit applies to: single-family homes (단독주택), multi-family homes (다가구주택), apartments (아파트), townhouses (연립주택), and multi-unit residences (다세대주택) under the Building Code Enforcement Decree.
Excluded: officetels (오피스텔), gifts (증여), inherited property (상속), and court auctions (경매).
Note for apartment buyers in Seoul and designated Gyeonggi areas: Apartments in all 25 Seoul districts and the 12 Gyeonggi jurisdictions listed above are subject to two separate permit designations running simultaneously. Layer 1 (re-designated under Notice No. 2026-1105) runs through August 25, 2027. Layer 2 (Announcement No. 2025-1219) runs through December 31, 2026. Both require the same prior-approval process.
How the permit process works
The buyer and seller apply jointly to the local district or city office before signing anything. The authority checks that the purchase is for genuine residential use, not speculation. Once the certificate is issued, the contract can proceed.
After the purchase closes, the permit holder must move in within four months and reside in the property for at least two years. Violations carry repeated fines of up to 10% of the property value and possible cancellation of the purchase.
Outside the permit zones
In Busan, Daegu, Jeju, and areas of Gyeonggi and Incheon outside the permit zone, you sign the contract first and then file the real estate transaction report (부동산 거래신고) within 30 days. No prior permit is needed, unless the land is in one of the special areas covered by Article 9 (military, heritage, or nature protection zones).
Two filings after you sign
1. Real estate transaction report (부동산 거래신고)
Every buyer, foreigners included, files this report after signing a purchase contract. The legal basis is Real Estate Transaction Reporting Act Article 3.
Deadline: Within 30 days of the contract signing date.
Who files: The buyer and seller jointly, or the licensed agent who drew up the contract.
Where to file: The city, county, or district office (시/군/구청) with jurisdiction over the property's location. You can also file through the Real Estate Transaction Management System online.
Extra items for foreign buyers:
- Your visa type (체류자격), your Korean address, and whether you have stayed in Korea for 183 days or more (required for contracts signed on or after February 10, 2026, under the amended Enforcement Decree and Enforcement Rules)
- For purchases in designated permit zones: a funding plan (자금조달계획서) with supporting documents for all sources of purchase funds, including overseas bank deposits, foreign loans, proceeds from stock or bond sales, and proceeds from cryptocurrency sales (required for contracts signed on or after February 10, 2026)
After filing, you get a real estate transaction report certificate (부동산거래계약 신고필증). You need it to register the title.
Gifts and other non-purchase contracts: The separate foreign acquisition report (외국인 부동산 취득 신고, Article 8) applies only to contracts other than purchases, such as gifts or exchanges. It is due within 60 days of signing. For non-contract acquisitions (inheritance, court auction, merger), the deadline is six months from the acquisition date.
2. Foreign exchange report for non-residents (외국환거래 신고)
If you are a non-resident (비거주자) buying with funds brought or sent from outside Korea, you must report the purchase to a foreign exchange bank (외국환은행) with documents proving the deal, under the Foreign Exchange Transactions Act (외국환거래법).
Documents you need at the bank:
- The purchase contract
- A property appraisal or official price certificate (공시지가 확인서)
- A property register extract (등기부등본)
Selling later: If you plan to sell and send the money abroad, ask your bank what you will need to send sale proceeds out of Korea.
Contact: Bank of Korea Foreign Exchange Supervision Team, 02-759-5300.
The Bank of Korea's guidance on this filing addresses non-residents (비거주자). If you live in Korea and pay from a Korean account, confirm with your bank whether any filing applies before you transfer funds.
The purchase process
Finding a property and working with an agent
Korea's property market runs largely through licensed real estate agents (공인중개사). Look for the 공인중개사 sign at the office entrance. In permit zones, you cannot proceed without first having the permit certificate, so engage a licensed agent early and confirm they are familiar with the permit zone process.
Contract and payment stages
A Korean residential purchase follows three payment stages:
- Contract deposit (계약금): About 10% of the purchase price, paid at contract signing. Unless the contract says otherwise, until the other side starts performing (for example, an interim payment is made), you can cancel by giving up the deposit, and the seller can cancel by paying back double the deposit (Civil Act Article 565).
- Interim payment (중도금): A payment between signing and closing, on the date and in the amount the contract sets.
- Balance payment (잔금): The remaining amount, paid on the closing date. Keys and registration documents are exchanged the same day.
Title registration (부동산등기): why paying is not enough
Paying the balance does not make you the legal owner. Under Civil Act Article 186, ownership transfers against third parties only through registration at the district court registry (등기소).
If a lien or mortgage is placed on the property after you pay but before you register, you could lose ownership. Register immediately after the balance payment.
What to submit for registration:
- The transfer contract
- The real estate transaction report certificate (부동산거래계약 신고필증)
- Proof of acquisition tax payment
- The seller's cooperation (their registration obligation certificate and seal)
Registration is typically completed within five to 10 business days.
Online access: iros.go.kr (대법원 인터넷등기소). Non-residents without a Korean-issued digital certificate may need a local representative to handle the filing.
Due diligence: what to check before you sign
Property register extract (등기부등본)
Pull this document from iros.go.kr or a court registry office (등기소) before signing anything and again on the day you pay the balance. Check for:
- Owner name matching the seller
- Mortgages (근저당)
- Liens (가압류)
- Seizure orders (압류)
- Any prior ownership or tenancy claim
The fee is small and available online to anyone.
Building register (건축물대장)
Get this from government24 at gov.kr or the local district office. It confirms the building's legal use designation, floor area, and construction status. If the actual use differs from the legal designation (for example, an illegally partitioned unit), you could face complications with financing, insurance, or future sale.
Taxes when buying
Acquisition tax (취득세)
This is paid to the local government within 60 days of purchase, under the Local Tax Act (지방세법) Article 11. The rate depends on the purchase price bracket and how many homes you hold in total.
Local education tax (지방교육세) and special rural development tax (농어촌특별세) are added as surtaxes on top of the acquisition tax.
For a first home at moderate prices, the combined effective rate is typically in the range of 1% to around 3.5% once surtaxes are included, but the exact figure changes with the tax schedule. Do not rely on these figures as current: verify the current rate table at wetax.go.kr or with the local tax office before buying (as of 2026; verify current rates before purchase).
For buyers who already own multiple homes, rates can escalate significantly under the Local Tax Act. Buyers purchasing in regulated zones as corporations also face elevated rates.
No nationality-specific surcharge or exemption on acquisition tax has been confirmed for foreigners. Verify this at nts.go.kr.
Holding taxes
Property tax (재산세): Levied annually by the local government. The assessment date is June 1 each year. Rates vary with the publicly assessed property value (as of 2026; verify current rates at wetax.go.kr).
Comprehensive real estate tax (종합부동산세, 종부세): A national tax on high-value property holdings above a government-set threshold. Rates and thresholds have changed multiple times in recent years. Verify the current threshold and rates at nts.go.kr before assuming whether your property will be subject to it.
Brokerage fees
Sales brokerage fees (중개보수) are capped by law. Both buyer and seller pay the agent separately.
The Seoul Metropolitan Government rate table (last updated October 19, 2021; verify at english.seoul.go.kr whether updated) sets ceilings for Seoul sales transactions:
| Purchase price | Maximum rate |
|---|---|
| Under ₩50 million | 0.6% (with ₩250,000 ceiling) |
| ₩50 million to ₩200 million | 0.5% (with ₩800,000 ceiling) |
| ₩200 million to ₩900 million | 0.4% |
| ₩900 million to ₩1.2 billion | 0.5% |
| ₩1.2 billion to ₩1.5 billion | 0.6% |
| ₩1.5 billion and above | 0.7% |
For transactions outside Seoul, check the Korea Real Estate Agency Association fee tool at kar.or.kr or the MOLIT electronic contract system at irts.molit.go.kr.
Can foreigners get a mortgage?
Yes, but eligibility varies. The factors that matter most are:
Visa and residency status: Lenders decide case by case based on your visa status and income. Non-residents face more restrictions and some lenders will not lend to them at all.
Loan-to-value limits: In Seoul and other regulated zones, the Financial Services Commission (FSC) sets loan-to-value limits that apply to all borrowers, not just foreigners. These limits change under macroprudential policy. Verify current limits at fsc.go.kr before calculating how much you can borrow (as of 2026; verify current LTV caps before applying).
Debt service ratio: A debt service ratio cap applies to all borrowers, covering the share of annual gross income that can go toward loan repayments. Confirm the current figure with your lender.
Permit zone and residency obligation: If you bought in a permit zone, the bank will need to see the permission certificate. The residency obligation (two years minimum) affects which loan structures are available.
Major Korean banks that have been cited as accommodating to foreign applicants include KEB Hana Bank, Shinhan Bank, Woori Bank, and KB Kookmin Bank. Bank product availability changes. Contact each bank directly and do not treat any specific LTV or rate figure as current without confirming.
If you are a non-resident without a Korean bank account or credit history, getting a mortgage will be significantly harder. Talk to a licensed mortgage broker or financial advisor familiar with foreigner lending before assuming financing is available for your situation.
FAQ
Can foreigners buy property in Korea?
Yes. Korea has no general ban on foreign property ownership. Most residential and commercial property is open to foreign buyers. The main additional steps are a prior permit in designated zones (since August 2025 in Seoul and much of Gyeonggi and Incheon), extra disclosures on the 30-day real estate transaction report, and, for non-residents bringing funds from abroad, a report to a foreign exchange bank.
Do foreigners need government permission before buying property in Seoul?
Yes, since August 26, 2025. The permit zone system now has two layers. Layer 1 (Announcement No. 2025-1058, re-designated under Notice No. 2026-1105) covers all residential property types in all 25 Seoul districts, 23 Gyeonggi cities and counties, and eight Incheon districts plus part of Jemulpo-gu, running through August 25, 2027. Layer 2 (Announcement No. 2025-1219) adds a separate apartment-specific designation covering all 25 Seoul districts and 12 Gyeonggi cities and districts (Gwangmyeong, Gwacheon, Uiwang, Hanam, three districts of Suwon, three districts of Seongnam, Yongin Suji, and Anyang Dongan), running from October 20, 2025 through December 31, 2026. If you are buying an apartment in those Seoul or Gyeonggi areas, you are covered by both layers. Layer 2 ends first, on December 31, 2026. After that, apartments in those areas still need a permit under Layer 1 through August 25, 2027. Verify current status at molit.go.kr before starting your search.
What is the 30-day real estate transaction report and who files it?
Every buyer, foreigners included, files a real estate transaction report (부동산 거래신고) within 30 days of signing the purchase contract, jointly with the seller or through the licensed agent who drew up the contract, at the city, county, or district office covering the property. This applies everywhere in Korea, including inside the permit zones. For contracts signed on or after February 10, 2026, a foreign buyer's report also includes your visa type (체류자격), your Korean address, and whether you have stayed in Korea for 183 days or more. If the property is in a permit zone, you must also submit a funding plan (자금조달계획서) covering the sources of your purchase funds, including overseas deposits, foreign loans, and cryptocurrency proceeds. The separate 60-day foreign acquisition report (외국인 부동산 취득 신고) is for contracts other than purchases, such as gifts.
Why does paying the purchase price not make me the legal owner?
Korea's Civil Act (민법) Article 186 requires registration for ownership to transfer against third parties. Until the title is registered at the district court registry (등기소), you have no enforceable ownership. If the seller's creditors file a lien after you pay but before you register, you could lose the property. Always register promptly after the balance payment.
What is the foreign exchange declaration and when do I need it?
If you are a non-resident (비거주자) buying with funds from overseas, you must report the purchase to a foreign exchange bank (외국환은행) with documents proving the deal. The legal basis is the Foreign Exchange Transactions Act (외국환거래법). Ask your bank what you will need to send sale proceeds abroad later. Contact the Bank of Korea's Foreign Exchange Supervision Team at 02-759-5300 for guidance.
What taxes do I pay when I buy property in Korea?
The main purchase-time tax is acquisition tax (취득세) under the Local Tax Act (지방세법) Article 11, paid to the local government within 60 days of purchase. Local education tax and special rural development tax apply on top as surtaxes. The exact rate depends on the purchase price and how many homes you already hold. No nationality-specific surcharge is currently in force. Verify current rates at wetax.go.kr before buying.
Can foreigners get a mortgage in Korea?
Yes, but eligibility depends on visa status, income source, and the property's location. Lenders decide case by case based on your visa status and income. Lenders in Seoul and other regulated zones apply loan-to-value limits set by the Financial Services Commission (FSC). Those limits change under macroprudential policy, so contact a lender directly and check fsc.go.kr for current rules.
What should I check in the property register (등기부등본) before buying?
Pull the property register extract (등기부등본) from iros.go.kr or a court registry office (등기소) before you sign anything. Check that the owner name matches the seller, and look for mortgages (근저당), liens (가압류), and seizure orders (압류). Any of these can affect your ownership after purchase. Also check the building register (건축물대장) from gov.kr to confirm the legal use and floor area.
Are the permit zone rules different outside Seoul?
Yes. In Busan, Daegu, Jeju, and areas of Gyeonggi and Incheon outside the permit zone, foreign buyers do not need prior permission (unless the land is in an Article 9 military, heritage, or nature protection area). You sign the contract, then file the real estate transaction report within 30 days. If you are a non-resident bringing funds from abroad, the foreign exchange bank report applies wherever the property is.
What is the brokerage fee for buying property in Seoul?
Brokerage fees (중개보수) for sales transactions are capped by regulation. The Seoul Metropolitan Government rate table (last updated October 19, 2021; verify whether updated) sets the ceiling at 0.7% for transactions of ₩1.5 billion and above, with lower caps for smaller amounts. Both buyer and seller pay separately. Check the current rate table at english.seoul.go.kr or the Korea Real Estate Agency Association tool at kar.or.kr.