Essential Reading for All Foreign Property Buyers
This guide covers the most significant regulatory change affecting foreign real estate buyers in Korea since the Foreigner’s Land Acquisition Act. If you are considering purchasing residential property in Seoul, Gyeonggi, or Incheon, read this before doing anything else.
Overview
On August 21, 2025, the Ministry of Land, Infrastructure and Transport (MOLIT) issued Notification No. 2025-1058, designating nearly the entire Seoul Metropolitan Area as a Foreign Land Transaction Permit Zone. Starting August 26, 2025, all foreigners must obtain prior government permission before purchasing residential property in these designated zones.
This replaced the previous system where foreigners could buy property freely and simply report the purchase within 60 days. Under the new system, a contract signed without prior permission has no legal effect.
Legal Basis
The permit system is established under the Act on Report on Real Estate Transactions (부동산 거래신고 등에 관한 법률), specifically:
- Article 9 — Permission for Land Transaction Conducted by Foreigner, etc.
- Article 10 — Designation of Areas Subject to Permission of Land Transaction
The following is the official English translation from the Korea Legislation Research Institute (KLRI):
Article 9 (Permission for Land Transaction Conducted by Foreigner, etc.)
(1) Notwithstanding Articles 3 and 8, where any land that a foreigner, etc. intends to acquire is located in any of the following zones, areas, etc., he or she shall obtain permission from the report-receiving authority for the acquisition of the land before entering into a contract for the land acquisition (hereinafter referred to as “land acquisition contract”), as prescribed by Presidential Decree: Provided, That the same shall not apply where a permission for the land transaction contract is obtained under Article 11:
1. Military bases and installation protection zones defined in subparagraph 6 of Article 2 of the Protection of Military Bases and Installations Act, and such other areas as may be necessary to limit land especially acquisition by a foreigner, etc. for the purposes of national defense as prescribed by Presidential Decree;
2. Designated cultural heritage defined in Article 2 (3) of the Cultural Heritage Protection Act, and protective facilities or protection zones therefor;
3. Ecological and scenery conservation areas defined in subparagraph 12 of Article 2 of the Natural Environment Conservation Act;
4. Special districts for protection of wildlife under Article 27 of the Wildlife Protection and Management Act.
(2) Following consultation with the heads of related administrative agencies, a report-receiving authority shall grant permission under paragraph (1), if the acquisition of land by a foreigner, etc. in a zone, area, etc. that falls under any subparagraph of paragraph (1) does not disrupt the attainment of the purpose of designation of the relevant zone, area, etc.
(3) A land acquisition contract concluded in violation of paragraph (1) shall be null and void.
Source: Korea Legislation Research Institute (KLRI), elaw.klri.re.kr — Act No. 19384, Amended Apr. 18, 2023. Translation is for reference only and is not legally binding.
Designated Permit Zones (2025–2026)
Under MOLIT Notification No. 2025-1058, the following areas were designated as Foreign Land Transaction Permit Zones:
| Region | Scope | Details |
|---|---|---|
| Seoul | All 25 districts | Gangnam, Gangdong, Gangbuk, Gangseo, Gwanak, Gwangjin, Guro, Geumcheon, Nowon, Dobong, Dongdaemun, Dongjak, Mapo, Seodaemun, Seocho, Seongdong, Seongbuk, Songpa, Yangcheon, Yeongdeungpo, Yongsan, Eunpyeong, Jongno, Jung, Jungnang |
| Gyeonggi | 23 cities/counties | Including Suwon, Seongnam, Yongin, Goyang, Bucheon, Anyang, Ansan, Gwangmyeong, Pyeongtaek, Siheung, Gimpo, Gwacheon, Hanam, Hwaseong, and others |
| Incheon | 7 districts | Including Jung-gu, Dong-gu, Michuhol-gu, Yeonsu-gu, Namdong-gu, Bupyeong-gu, Seo-gu |
Who Must Obtain a Permit
Article 2(4) of the Act defines “foreigner, etc.” (외국인등) broadly:
The term “foreigner, etc.” means any of the following individuals, corporations or organizations:
(a) An individual who is not a national of the Republic of Korea;
(b) A corporation or organization incorporated under the statutes or regulations of a foreign State;
(c) A corporation or organization at least a half of whose employees or members fall under item (a);
(d) A corporation or organization at least a half of whose executive officers, such as managing general partners or directors, fall under item (a);
(e) A corporation or organization in which persons falling under item (a) or corporations or organizations falling under item (b), hold at least a half of its capital or a half of the voting rights;
(f) A foreign State;
(g) An international organization prescribed by Presidential Decree.
Source: KLRI official translation, Article 2(4)
This means: if you are not a Korean citizen, you need a permit. If your company has 50%+ foreign ownership, your company needs a permit. There are no exemptions based on visa type, residency status, or length of stay in Korea.
Which Properties Require a Permit
The permit applies to residential properties as classified under the Building Act Enforcement Decree (Annex 1):
- Single-family houses (단독주택)
- Multi-family houses (다가구주택)
- Apartments (아파트)
- Row houses (연립주택)
- Multi-unit houses (다세대주택)
Exempt: Officetels
Officetels (오피스텔) are classified as commercial/business facilities, not residential housing, under the Building Act. Therefore, officetels are exempt from the permit requirement. This makes officetels the only residential-style property that foreigners can purchase purely for investment purposes in Seoul without residency obligations.
Also Exempt
- Properties acquired through inheritance
- Properties acquired through court auction (경매)
- Properties acquired through court judgment
- Commercial properties (offices, retail, etc.)
The Permit Process: Step by Step
- Find a Property — Work with a licensed real estate agent (공인중개사) and identify the property you wish to purchase.
- Prepare Documentation — Compile required documents including proof of identity, proof of funding source, and an agreement between buyer and seller (합의서).
- Apply for Permit — Submit the Foreign Land Acquisition Permit Application (외국인 토지취득 허가신청서) to the Si/Gun/Gu office that has jurisdiction over the property location. This must be done before signing the purchase contract.
- Processing Period — The local office processes your application within 15 days (30 days for military-related zones). Extensions of up to 30 additional days are possible.
- Receive Permit — If approved, you receive a Foreign Land Acquisition Permit Certificate (외국인 토지취득 허가증).
- Sign Contract — Only after receiving the permit can you legally sign the purchase contract.
- Complete Purchase — Proceed with payment, registration, and property transfer as normal.
- Move In — You must move into the property within 4 months of the permit date.
- Reside — You must actually live in the property for a minimum of 2 years.
Penalties for Non-Compliance
The Act prescribes severe consequences. From the KLRI official translation:
Article 26(2) — Penalty Provisions
“A foreigner, etc. who enters into any land acquisition contract without obtaining permission under Article 9 (1) or after obtaining permission by improper means shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.”
Source: KLRI official translation, Article 26(2), Act No. 19384
Additionally:
- A contract signed without a permit is legally void — “null and void” in the language of the Act (Article 9(3)).
- Failure to fulfill the residency obligation results in enforcement fines of up to 10% of the property acquisition value, imposed repeatedly until compliance.
- Korean courts have ruled that ignorance of the permit requirement is not a valid defense against criminal liability.
Practical Implications for Foreign Buyers
If You Want to Buy in Seoul
You must genuinely intend to live in the property. The new system effectively ends investment-only purchases of apartments in Seoul by foreigners. You will need to demonstrate your intent to reside, provide proof of funding, and commit to at least two years of actual residence.
If You Want to Invest Without Living There
Consider these alternatives:
- Officetels in Seoul — Exempt from the permit requirement
- Properties outside permit zones — Busan, Daegu, Jeju, and other non-metropolitan cities still follow the simple 60-day reporting system
- Commercial real estate — Offices, retail, and industrial properties are not subject to the residential permit requirement
The Seller Cooperation Issue
The permit application requires an “agreement between the parties” (당사자 간 합의서). This means the seller must cooperate with your permit application before any contract is signed. In practice, this can complicate negotiations because sellers may be reluctant to wait 15–30 days for permit processing when they could sell to a Korean buyer immediately.
Current Permit Period
The original designation ran from August 26, 2025 to August 25, 2026. Seoul’s 25 districts have been extended through December 31, 2026. The government has indicated that further extensions are possible depending on market conditions and policy effectiveness.
How We Can Help
As a licensed attorney and certified real estate agent with 30 years of government experience, we provide:
- Permit application preparation and filing
- Legal review of all documentation
- Coordination with local government offices
- English-language support throughout the entire process
- Connection with trusted local agents in your target area
Contact us for a consultation →
Sources: Act on Report on Real Estate Transactions (부동산 거래신고 등에 관한 법률), Act No. 19384; MOLIT Notification No. 2025-1058 (Aug. 21, 2025); KLRI English translation (elaw.klri.re.kr); Korea Policy Briefing (korea.kr); Kim & Chang Insight (kimchang.com/en/insights/detail.kc?idx=32799)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Regulations may change. Always consult a qualified legal professional before making property purchase decisions. English translations of Korean statutes cited herein are reference translations provided by KLRI and are not legally binding.
Last updated: March 2026