Foreign Ownership Rules
OpenSouth Korea is broadly open to foreign property ownership. Unlike many Asian markets, foreigners can own both buildings AND land freehold under the Foreigners Land Acquisition framework (Act on Report on Real Estate Transactions). However, a major new restriction took effect on 26 August 2025: a Foreign Land Transaction Permit system requiring prior government approval and owner-occupancy for purchases across the Seoul Metropolitan Area.
- Foreigners CAN own apartments, officetels, villas, detached houses, and land freehold under their own name -- there is no condominium foreign quota as in some neighbouring markets
- The Foreigners Land Acquisition framework defines a foreigner as any individual without Korean nationality, plus companies where non-Koreans hold 50 percent or more of capital or voting rights
- PERMIT SYSTEM (effective 26 August 2025): the entire Seoul Metropolitan Area, comprising all of Seoul, 23 cities and counties in Gyeonggi Province, and 7 districts of Incheon, is now a Foreign Land Transaction Permit zone where foreigners must obtain prior approval from local authorities before buying
- In permit zones, approved non-resident foreign buyers must move into the property within 4 months and reside there for at least 2 years, effectively limiting purchases to owner-occupiers rather than pure investors
- Officetels (studio or mixed-use units), gifts, inheritance, and court auctions are EXCLUDED from the permit requirement, so officetels remain a route for investment-oriented foreign buyers
- Outside the permit zones (for example Busan, most provinces, parts of Jeju), the traditional regime applies: simply report the acquisition within 60 days, with no prior permit needed
- RESTRICTED ZONES requiring advance permission regardless of location: military base protection zones, cultural heritage protection zones, ecological and landscape conservation zones, and wildlife protection zones
- Farmland is effectively off-limits to most non-resident foreigners due to agricultural-use certificate requirements that are rarely granted
- Penalties for unauthorised purchase in a restricted zone reach up to 2 years imprisonment or a fine up to KRW 20 million; permit-zone violations carry repeated fines up to 10 percent of property value and potential cancellation of the purchase
- The permit system runs initially from 26 August 2025 to 25 August 2026 and may be extended, so foreign buyers should verify the current status before committing
