Procedure for Foreigners Acquiring
Real Estate in Korea
There are two cases of acquiring real estate in Korea for foreigners: "Resident Foreigners" and "Non-resident Foreigners."
For the acquisition of real estate by resident foreigners, such as
purchasing residential property for dwelling purposes or acquiring real estate
through domestic branches of foreign companies, there is no requirement for
reporting under the "FOREIGN EXCHANGE TRANSACTION ACT" Instead,
within 60 days after the conclusion of the sales contract, they should report
to the local district office, county office, or ward office and register the
transfer of ownership. The "ACT
ON REPORT ON REAL ESTATE TRANSACTIONS, ETC." and the "REGISTRATION
OF REAL ESTATE ACT" are applicable in this case.
The procedure for a resident foreigner to acquire real estate:
- Verification of Residency Status: Resident foreigners must first verify their residency status in Korea. This typically involves providing relevant documentation to demonstrate legal residency, such as a valid visa or residence permit.
- Real Estate Search and Selection: Once residency status is confirmed, resident foreigners can begin searching for suitable real estate properties. They can engage the services of a real estate agent or search online platforms to find properties that meet their criteria.
- Real Estate Purchase Agreement: After finding a suitable property, the resident foreigner enters into a real estate purchase agreement with the seller. This agreement outlines the terms and conditions of the sale, including the purchase price, payment schedule, and any other relevant details.
- Legal Due Diligence: Before finalizing the transaction, it's essential for the resident foreigner to conduct legal due diligence on the property. This may involve verifying the property's ownership status, checking for any outstanding liens or encumbrances, and ensuring compliance with zoning and building regulations.
- Transfer of Ownership: Upon completion of the legal due diligence process and satisfaction of all contractual obligations, the transfer of ownership takes place. The resident foreigner and the seller complete the necessary paperwork to transfer ownership of the property.
- Registration of Ownership: The final step in the process is to register the new ownership of the property with the local land registry office. This ensures that the resident foreigner's name is officially recorded as the owner of the property.
Throughout the entire process, it's advisable for resident foreigners to seek the assistance of legal professionals or real estate agents who are familiar with the local laws and regulations governing real estate transactions.
For non-resident foreigners, they must first report the real estate acquisition to the head of the foreign exchange bank in accordance with the "FOREIGN EXCHANGE TRANSACTION ACT" when bringing in funds for real estate acquisition. Subsequently, they should report the real estate acquisition to the city, county, or district office according to the "ACT ON REPORT ON REAL ESTATE TRANSACTIONS, ETC.," and then proceed with the transfer of ownership registration. In this process, the "ACT ON REPORT ON REAL ESTATE TRANSACTIONS, ETC.," "FOREIGN EXCHANGE TRANSACTION ACT," and "REGISTRATION OF REAL ESTATE ACT" are applicable.
The procedure for non-resident foreigners to acquire real estate in Korea is as follows:
- Foreign Investment Application: Non-resident foreigners must obtain a Foreign Investment Registration Certificate to acquire real estate in Korea. To do this, they need to submit an application to the local district office or municipal office of the location where the property is located.
- Permit and Registration: Once the application for the Foreign Investment Registration Certificate is submitted, the relevant authority will review the application and determine whether to grant permission. Upon approval, the Foreign Investment Registration Certificate can be issued.
- Real Estate Purchase Contract: After obtaining the Foreign Investment Registration Certificate, non-resident foreigners can enter into a real estate purchase contract. The contract should specify detailed information about the property, price, and purchase conditions.
- Registration and Transfer of Ownership: Once the real estate purchase contract is signed, the buyer needs to apply for registration of ownership transfer at the land registry office. This process changes the name of the property owner to the non-resident foreigner.
- Payment of Taxes and Fees: There may be taxes and fees involved in the real estate purchase process. These could include acquisition tax, registration tax, real estate agency fees, etc. These costs are specified in the purchase contract and should be paid before the transaction is completed.
-외국환거래법 FOREIGN EXCHANGE TRANSACTION ACT
-부동산 거래신고 등에 관한 법률 ACT ON REPORT ON REAL ESTATE TRANSACTIONS, ETC.
-부동산 등기법 REGISTRATION OF REAL ESTATE ACT
