In recent years, there have been more and more voices to buy houses and go overseas, Japan, Thailand, and Malaysia have been talked about many times, and now it is South Korea’s turn.
I have to say that there are some attractions in Korea: the metropolitan atmosphere of Seoul, the slow pace of life in Busan, and the sea breeze and sunshine of Jeju Island. If it’s just a short stay, it’s really easy to be tempted. But when you start to check information, look at housing prices, and study policies, you will soon find that South Korea is not the kind of place where you can pay money to get an identity and live for a lifetime.
I am not writing this article to dissuade anyone, but to sort out some of the pitfalls I have stepped on, the documents I have read, and the details of my conversations with agents in the process of buying a house in South Korea.
Whether to buy or not is your own decision, but I hope you are sober before making this decision.
Home Purchase ≠ Automatic Visa Approval
In many overseas real estate propaganda, the saying that buying a house and giving away identity is very attractive, and many people mistakenly believe that as long as they buy a house in South Korea, they can successfully obtain long-term residency and even finally obtain citizenship.
However, this perception is not in line with South Korea’s actual policy. South Korea is not currently a country for immigration to buy a house, and the purchase of a property itself does not automatically confer any type of residency status.
South Korea’s immigration and residency system mainly relies on various paths such as employment, investment, marriage, and study abroad. A mere property purchase can only be considered an act of property and does not constitute a direct reason for obtaining a visa or long-term residence.
In contrast, South Korea has briefly introduced an “investment immigration” policy in Jeju Island and other places, but the investment amount is usually more than 500 million won, and it must be invested in government-designated real estate or development projects, not the general residential market.
South Korea Housing Market and F-2 Visa Requirements
The next thing I want to introduce is the F-2 visa in South Korea. Many people think that as long as they buy property in South Korea, they can directly obtain long-term residence or even permanent residency status, but this is not the case.
Strictly speaking, buying a house in South Korea is not directly exchanged for a visa, and the property is only an auxiliary factor in the application conditions. The F-2 visa is essentially a “resident visa” and its review criteria cover a variety of factors, such as: the applicant’s educational background, years of work and professional skills, annual income level in South Korea, tax records, whether they have a certain level of Korean language proficiency, and their adaptability and contribution to Korean society.
The South Korean government evaluates applicants based on a points system, which usually requires about 80 out of 100 points to be passed.
Economic contributions usually include multiple dimensions such as high income, high education, continuous tax payments, and Korean language proficiency. Under certain circumstances, foreign nationals can apply for an F-2 visa through large investments, including real estate.
However, this is not simply to buy a suite, but to meet multiple conditions, such as the purchase amount must reach more than 500 million won (about 260,000 yuan), the property must be located in a government-designated area (such as Jeju Island or some free economic zones), and it must continue to legally reside in South Korea during the holding period.
At the same time, applicants also need to provide supplementary materials such as language scores, tax bills, and residence plans, and pass a comprehensive evaluation by the Korean immigration department. Even so, this type of visa is generally only for 1~3 years of long-term residence, which is not equivalent to permanent residency.
South Korea Real Estate Rules for F-5 Permanent Residents
For those looking to obtain a South Korean green card, the F-5 permanent residency visa is the ultimate goal. However, the threshold for this type of visa is quite high and it is not easy to obtain with just a one-time investment or home purchase. Applicants usually need to hold a long-term visa such as F-2 and legally reside in South Korea for at least five consecutive years; During this period, it is necessary to maintain a record of stable income and continuous tax payments to ensure financial independence.
At the same time, applicants must not have any criminal record, and must also pass the Korean language proficiency test recognized by the Korean government, which usually requires TOPIK level 3 or above to prove that they can live and communicate normally in society. In addition, it is necessary to prove that you have the conditions to live independently in South Korea and not rely on government public assistance.
In other words, even if someone has spent hundreds of millions of won to buy real estate in South Korea, if they lack actual residence experience, no tax and employment records, and no Korean language skills, then F-5 permanent residency is still out of the question.
Buying a Home as an Additional Investment Limitation
Even if the applicant fully meets the investment amount requirements for buying a house, the South Korean government still has a number of hidden restrictions on applying for a visa through investment in buying a house.
First, some visa categories do not allow subletting of owned homes, limiting investment flexibility; Second, properties in some areas are not allowed to be resold for a short period of time for several years after acquisition to prevent speculation and speculation.
Furthermore, the purchase visa is usually tied to the property itself, and if the property is sold, the visa eligibility may expire immediately. In addition, policies are not fixed, and South Korea’s entry-exit and investment-related policies may be adjusted and tightened at any time according to the economic situation or political factors.
| Restrict items | illustrate |
|---|---|
| No sublease | Some visa categories do not allow renting out the house during the holding period |
| It may not be resold in the short term | Properties in some areas cannot be transferred for several years after purchase |
| Persistence Holding Requirements | The visa for the purchase of a home is usually tied to the property itself, and once the property is sold, the visa eligibility may expire immediately |
| Policies can be adjusted at any time | South Korea’s entry and exit policies are not fixed and may be tightened at any time depending on the economic situation or political pressure |
It can be seen that if you want to achieve long-term residence or identity planning through the purchase of a house, you must meet multiple conditions for a specific visa category, which are far more complex than simply buying a house.
Regulations for Foreigners Buying Houses in South Korea
Although the Korean real estate market is relatively open to the outside world, this does not mean that foreigners can “buy whatever they want” like locals. In fact, the South Korean government has set fairly clear restrictions and regulatory measures for foreign buyers, especially in popular cities or sensitive areas, from eligibility to transaction methods.
From August 26, 2025, foreign individuals, enterprises or government agencies who want to purchase a residence of more than 6 square meters must apply for permission from the local government in advance, and after approval, they must move in the purchased residence within 4 months and continue to live in it for at least 2 years, and it is prohibited to use the residence for investment purposes such as renting.
In addition, the source of funds for the transaction must be fully explained, including the source of funds overseas and the type of visa, and if there is any suspicion of money laundering, it will be reported to the Financial Intelligence Unit (FIU) and an investigation may be initiated. Violators can be required to make corrections within a time limit, and failure to comply will result in an annual fine of up to 10% of the house price and may even cancel the transaction permit.
This policy is to deal with the problem of foreign speculation and speculation in recent years and maintain the stability of housing prices. For foreigners planning to buy a house in the South Korean metropolitan area, it is important to understand the relevant regulations, application process and capital supervision requirements in advance to ensure that the transaction is legal and compliant.
Pre-Purchase Reporting
Do you think buying a house in Korea is free? In fact, it is not easy at all. For foreigners, the real process is much more cumbersome than imagined. First of all, before buying, you must go to the local city hall or district hall to report and submit a home purchase declaration.
Then, after the transaction is completed, the property registration must be completed within 30 days. If you forget or delay for too long, you may not only be fined, but also affect subsequent transfers and even visa applications.
Therefore, buying a house in South Korea is not as simple as “signing and paying if you are optimistic about the house”, but to go through a complete set of administrative procedures. Time is tight and there are many rules, so you must be mentally prepared in advance.
Additional Restrictions in Popular Areas
Many people think that as long as they have money, they can buy a house anywhere in Korea, but in fact this is not the case. Popular areas such as Gangnam and Mapo in Seoul have long been listed as speculative overheated areas, and foreigners who want to buy a house will encounter a bunch of additional restrictions.
For example: you cannot buy a house in the name of an overseas company; the source of funds must be clearly explained, and you may be asked to provide bank statements and tax records; Some transactions even have to go to the Ministry of Finance or the Ministry of Justice for approval, otherwise the property rights cannot be registered at all.
Therefore, even if you have enough money in your pocket and really want to buy it, it does not mean that you can easily complete the transaction. The threshold for buying a house in a popular area in South Korea is much higher than expected.
Foreigners Can Hardly Get a Home Loan in Korea
Many people don’t know that it is almost impossible for foreigners to buy a house with a loan in South Korea. South Korean banks are very conservative about foreign customers, especially those without permanent residence, and basically do not easily approve home mortgages.
In other words, if you plan to buy a house in South Korea, you have to prepare almost the full amount. Even if you have a long-term visa and a work record in South Korea, it is difficult to “pay down first and then take out a loan” like locals.
Of course, it is not completely without exceptions. Very few foreigners with high net worth or long-term tax payments can indeed get loans. But the process is very troublesome, the approval time is long, and the interest rate is not low.
South Korea home buying process
For non-Korean home buyers, the dual pressure of language barrier and legal understanding is an important challenge throughout the entire home buying process. These obstacles not only affect decision-making efficiency, but can also directly lead to legal or financial risks.
The home purchase process is roughly as follows:
Housing Selection→ Sign the Purchase Contract → Pay a Deposit (10%) → Complete the title survey and tax audit → Pay the remaining balance → Register the title → Live or rent
In Korea, the vast majority of house purchase contracts are in Korean as the standard format, with detailed language and complex structures. Even with a certain foundation in Korean, it is difficult to accurately understand key contents such as “breach of contract clause”, “tax sharing”, “property rights defects”, and “intermediary liability”.
In addition, the property rights registration system is complex, requiring the submission of identification certificates, home purchase reports, seal certificates, notarized documents, etc. The procedures are cumbersome and time-consuming, making it challenging for non-Korean speakers.
Some sellers or intermediaries may include clauses in the contract that are unfavorable to the buyer, such as:
- The liquidated damages are set asymmetrically (the buyer’s penalty for liquidated damages is much higher than that of the seller);
- The exemption clause for the condition of the house, even if there are hidden defects in the house, the buyer still needs to bear it himself;
- Unclear tax liability may result in the buyer being liable for local taxes, stamp duty, etc. that should have been paid by the seller.
If it is not signed without professional review, it will be extremely difficult to hold accountable in the later stage.
Legal procedures are cumbersome and procedural errors affect property rights registration.
After completing the purchase contract, the buyer is required to go through a series of statutory processes, including property rights registration (登录기부등本 registration). This process involves the submission of several Korean documents and legal materials, such as:
- identity verification (passport or alien registration card);
- foreigners buy houses in advance (foreigners purchase house declaration);
- Seal certificate (seal certificate), signature authentication;
- Notarized documents (bilingual or certified texts are required, depending on nationality);
- real estate tax and acquisition tax payment certificate, etc.
Failure in any of these steps may result in an extension of registration or even the inability to obtain a valid title certificate. Especially for investors who use the legal person purchase method, they also need to provide additional materials such as legal person register, investment purpose description, and source of funds review report, which is more complicated.
Blurred Boundaries of Intermediary Responsibilities
Some real estate agents in Korea do not provide full translation and legal advice to foreigners, but only act as transaction matchmakers. Once a dispute occurs, such as the actual condition of the house does not match the publicity, the final payment process is misleading, etc., the buyer often falls into a situation of isolation and helplessness.
Therefore, it is recommended to hire the following:
- Korean lawyers who are familiar with real estate-related regulations;
- or professional intermediaries that provide bilingual support;
- If necessary, you can also consult legal assistance channels through the Korean consulate in the host country.
Taxes and Holding Costs Should Not Be Underestimated
Buying a property in South Korea involves a series of taxes and holding costs in addition to paying the price of the house itself. These expenses can significantly impact the overall investment income when held for a long time and sold in the future, so it’s important to plan ahead.
| type | Tax description | remark |
|---|---|---|
| Purchase tax | Approx. 1%~4.6% | Depends on the property price and area |
| Registration Tax | Approx. 0.2% | |
| Personal income tax | If you sell for a profit, you will be taxed on the difference (up to 45%) | |
| Holding tax (property tax + comprehensive real estate tax) | Paid annually | High-priced properties are heavily burdened |
| Intermediary service fee | Approx. 0.4%~0.9% | The buyer and seller pay half each |
In addition, some cities in South Korea also impose a “surtax on vacant houses” or “speculation tax”, especially to punish repeated transactions in the short term.
Market risks and policy changes are unpredictable.
In recent years, the South Korean real estate market has experienced significant fluctuations. Especially between 2020 and 2022, the rapid rise in housing prices has attracted a large number of domestic and foreign investors, and the proportion of foreign home buyers has also increased significantly at this stage, especially in popular areas such as Seoul, Busan and Jeju Island.
However, since 2023, the market has gradually entered a period of adjustment. The government has begun to strengthen regulation, bringing many uncertainties and risks. Housing prices have fallen after a rapid rise, and the rise in the proportion of foreign home buyers has also triggered a rebound in policy review and public opinion. In the future, the government does not rule out introducing new restrictions, such as restricting resale, raising tax rates, and even limiting the proportion of foreign buyers buying homes. Once there is a policy change, foreigners may face the dilemma of declining asset liquidity and difficulty in reselling after purchase.
In addition to market and policy risks, residency, rental and tax compliance issues cannot be ignored. In South Korea, some residential complexes – especially high-end apartments or special management areas – have restrictions on the identity and use of residents. For example, some communities do not allow foreigners to live in their own homes for a long time, or prohibit dual-use of commercial and residential use; If the house is used for rent, it must be declared and paid rent tax in accordance with the law. If you violate the regulations, you may face serious consequences such as fines, visa cancellations, and even property freezes.
Written at the end
Although South Korea’s real estate system is relatively mature and transparent as a whole, there are still many hidden thresholds and potential risks for foreign buyers. There are a few things that must be kept in mind before making a home purchase decision.
First of all, buying a house is not the same as obtaining status, and buying a house in South Korea does not automatically lead to long-term residence or immigration status. Secondly, policies may change at any time, and the market also has a cycle of rising and falling, so investment must be cautious.
At the same time, language, culture and legal barriers are also real, and the complexity of cross-border real estate cannot be underestimated. Finally, it is more important to clarify your goals, whether it is investment, self-occupation or immigration, because different purposes require different paths and strategies.
All in all, don’t trust advertisements such as buying a house with a free identity or easily buying a house in Korea. Only by fully understanding the rules and carefully assessing the risks can you make rational and safe choices in the Korean real estate market.