South Korea Real Estate 2025: Foreign Ownership, Market Trends & Top Cities
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9/16/2025
✅ Can Foreigners Buy Property in South Korea?
Yes — foreigners can purchase real estate in South Korea, but must comply with registration and government reporting requirements. Restrictions exist for certain property types and locations.
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Foreign buyers need to register property ownership with local authorities within 60 days of purchase.
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Agricultural land purchases require government approval and are generally restricted.
⚖️ Foreign Ownership Laws
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No general restrictions on foreigners buying residential or commercial property
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Agricultural and forest lands are restricted and require special permits
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Ownership rights are protected once property is registered
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Buyers must report purchases to the Ministry of Land, Infrastructure and Transport (MOLIT)
🏙️ Top Cities & Regions to Invest
🔹 1. Seoul
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Capital and largest city
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High demand for apartments and commercial space
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Strong rental market and capital appreciation
🔹 2. Busan
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Major port city with growing real estate sector
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Attractive coastal properties and commercial investments
🔹 3. Incheon
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Gateway city near Seoul with airport and logistics hubs
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New developments and industrial real estate growth
🔹 4. Daegu
- Industrial and cultural city with affordable housing options
🔹 5. Jeju Island
- Tourist destination with luxury resort properties and vacation homes
💰 Property Prices in 2025
| Location | Avg. Price (KRW/sqm) | Approx. €/sqm |
|---|---|---|
| Seoul | ₩12,000,000–25,000,000 | €8,700–€18,200 |
| Busan | ₩6,000,000–12,000,000 | €4,300–€8,700 |
| Incheon | ₩5,000,000–10,000,000 | €3,600–€7,300 |
| Daegu | ₩4,000,000–8,000,000 | €2,900–€5,800 |
| Jeju | ₩7,000,000–15,000,000 | €5,100–€11,000 |
📈 Rental Yields & ROI
| Location | Long-Term Yield | Short-Term Rental ROI |
|---|---|---|
| Seoul | 3.5–5% | 5–7% |
| Busan | 4–6% | 6–8% |
| Incheon | 4–5.5% | 5.5–7.5% |
| Daegu | 4.5–6% | 6–8% |
| Jeju | 5–7% | 7–10% |
🛠️ Buying Process for Foreigners
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Obtain a Korean Tax Identification Number
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Find property and negotiate purchase price
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Conduct legal due diligence with a local lawyer
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Sign contract and pay deposit
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Complete sale with a public notary or legal representative
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Register property ownership with local registry within 60 days
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Pay applicable taxes and fees
🧾 Taxes & Fees
| Tax/Cost | Rate/Details |
|---|---|
| Acquisition Tax | 1%–3.5% depending on property type and price |
| Registration Tax | 0.2%–0.4% of property value |
| Capital Gains Tax | 6%–45% progressive based on holding period |
| Property Tax | 0.15%–4% annually based on assessed value |
| Rental Income Tax | Progressive rates up to 45% |
🛂 Residency & Visas
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Property ownership does not grant residency or citizenship
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Residency visas require separate immigration applications
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Investment in property is not a direct path to visa or residency status
🏘️ Who Should Invest in South Korea?
✅ Ideal for:
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Investors interested in dynamic urban markets like Seoul and Busan
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Buyers seeking long-term capital appreciation
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Those comfortable with regulatory reporting and tax compliance
❌ Not ideal for:
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Buyers expecting residency through property ownership
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Investors seeking agricultural land without special permits
🔮 2025 Market Trends
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Seoul real estate remains competitive with limited supply
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Growth in coastal and resort properties on Jeju Island
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Increasing demand for sustainable and smart buildings
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Government measures to control speculative buying and stabilize prices
🧭 Final Thoughts
South Korea offers secure property rights for foreigners with moderate market entry barriers. Thorough legal and tax guidance ensures smooth transactions.
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