How to buy property in South Korea as a foreigner

Can foreigners really own Korean property?

Yes — and outright. South Korea grants foreign nationals essentially the same ownership rights as citizens for apartments, officetels, houses, and most land. You do not need a visa, residency, or a Korean company. Your name goes on the public registry (등기부등본), the same document Koreans use to prove ownership.

The main procedural difference is reporting: after signing a contract, foreign buyers file a foreigner acquisition report with the local district office (within 60 days). A small number of protected zones — near military installations, certain cultural heritage areas — require permission before contracting instead. A licensed agent checks the parcel's status before you ever sign.

The buying process, step by step

1) Define the target — city, district, budget, purpose (residence, rental investment, or future relocation). 2) Registry check — we pull the 등기부등본 to verify the seller, mortgages, and liens. 3) Contract — typically 10% deposit at signing, with the balance in one or two installments over 1–3 months. 4) Foreigner acquisition report and, at closing, ownership registration through a judicial scrivener (법무사). 5) If you're funding from abroad, the inbound remittance is documented so the money can legally exit Korea again when you eventually sell.

The entire process can be completed without visiting Korea, using video tours and a notarized power of attorney — though most buyers enjoy at least one trip.

Jeonse: the system that surprises everyone

Korea's rental market has a unique instrument: jeonse (전세). Instead of monthly rent, the tenant hands the owner a refundable lump-sum deposit — commonly 50–80% of the property's value — and lives rent-free until the lease ends, when the deposit is returned in full.

For investors this cuts both ways. Buying a home with a jeonse tenant in place means you only need to fund the gap between price and deposit — a form of built-in, interest-free leverage. But it also means a large liability comes due when the tenant leaves. It's a powerful structure once understood, and a dangerous one if not; we model the numbers with you before any jeonse-backed purchase.

Taxes in plain English

Buying: acquisition tax of roughly 1–3% for a first home (it rises steeply for second and third homes), plus small registration levies and a judicial scrivener fee. Agent commission is capped by law and scales with price (roughly 0.4–0.7% for most apartments).

Owning: annual property tax, and for high-value holdings the comprehensive real estate tax (종부세). Renting out: rental income is taxable in Korea. Selling: capital gains tax applies, with rates depending on holding period and how many homes you own. Korea has tax treaties with most countries, so double taxation is generally relieved — but plan the exit before the entry.

Financing: assume cash, be pleasantly surprised

Korean banks focus on borrowers with Korean income and residency; non-resident mortgages are rare. Most foreign purchases are cash, sometimes combined with the jeonse structure above to reduce the upfront amount. If you hold a long-term visa (F-series) with Korean income, local mortgages open up subject to LTV and DSR regulations that vary by region and price band.

How GlobeBy helps

GlobeBy Korea is run by a licensed agent affiliated with eXp Korea. We handle everything in English: shortlisting properties, pulling and explaining registry documents, video tours, negotiation, the foreigner reporting paperwork, and introductions to bilingual scriveners and tax accountants. You get one accountable point of contact from first search to keys in hand.