Restriction on Foreigners Buying Property in South Korea
Starting from August 26, new rules regarding real estate purchases for foreigners will be implemented in South Korea. This was reported by Zamin.uz.
From now on, home purchases in Seoul and certain districts of the capital will face strict restrictions. Foreign nationals can only own real estate if they obtain permission from local authorities and for personal residential purposes.
The restrictions apply to Seoul city, 23 municipalities in Gyeonggi Province (excluding Yangju, Icheon, Uijeongbu, Dongducheon, Yangpyeong, Yeoju, Gapyeong, and Yongchon), as well as seven autonomous districts in Incheon city. All foreign individuals, companies, and organizations must obtain official approval before purchasing real estate.
Transactions made without permission will not be legally valid. The new rules cover apartments, multi-story buildings, townhouses, and private houses.
Only office apartments used for business purposes are exempt from these restrictions. Additionally, foreigners who purchase a home must move in within four months and reside in the property for at least two years.
Renting out the property is prohibited. If the real estate is purchased for a fee, obtaining permission is mandatory; properties given free of charge are not subject to this requirement.
When rules are violated, the local government where the property is located will take legal measures within three months. If this requirement is not met, a fine of up to ten percent of the land price per year may be imposed.
Thus, the procedures for foreigners to purchase real estate in South Korea will be more stringent and closely monitored.
