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Land, buildings & compensation

How to Apply for a Land Transaction Contract Permit — Land Use Plan, Fund Procurement Plan and a 15-Day Processing Period

In a land transaction permit zone, a contract that transfers or creates ownership or superficies over land above the threshold area for consideration requires a permit from the mayor, county head or district head, applied for jointly by the seller and buyer under Article 11 of the Act on Report on Real Estate Transactions. The application states the contract details, the land use plan and the acquisition fund procurement plan, and the permitting authority must grant or refuse the permit within 15 days from receipt of the application. A land transaction contract concluded without a permit has no effect, and it is punishable by imprisonment of up to 2 years or a fine of up to 30% of the land price based on the individual officially assessed land price. Land acquired with a permit must be used for the permitted purpose for 2 to 5 years depending on the purpose, and if this is not kept, a fact-finding survey conducted at least once a year leads to an order to perform and a charge for compelling compliance of up to 10% of the acquisition price imposed every year.

Written by Hwang Yunsang, Administrative Agent · Published 2026-10-12 · Updated 2026-10-12

Procedure

  1. 1. Check the permit zone and the threshold area

    Check the designation notice for the zone boundaries and whether specific persons, uses or land categories are subject to the permit. Threshold areas are 60㎡ in residential areas, 150㎡ in commercial and industrial areas, 200㎡ in green areas and 60㎡ in urban areas without a use zone designation, and 250㎡ outside urban areas (500㎡ for farmland and 1,000㎡ for forest land); the designation notice may set a different threshold between 10% and 300% of the standard area. Even if land is split or divided into co-ownership shares after the zone is designated so that it falls below the threshold, the first transaction after the split still requires a permit, and buying parts of a single tract within 1 year is treated as a transaction of the whole tract.

  2. 2. Match the intended land use with the permit criteria

    The permitting authority checks whether the purpose falls under Article 12 of the Act, such as land for one's own residential housing, farming by farmers in the permit zone, welfare or convenience facilities for local residents, public works, or a business already operated in the area. A purpose that does not conform to the urban or county plan, that threatens serious harm to the ecosystem or living environment, or an area that is excessive for the purpose is a ground for refusal. The buyer's address and length of residence, farmer status and business record are organized first to decide which purpose to apply under.

  3. 3. Prepare the land use plan and the fund procurement plan

    The land use plan states the development and use plan for the land, such as construction or change of land form (including a schedule with start and completion dates), and an approximate breakdown of the required funds, and the construction start date must be set within 2 years from acquisition. For farmland that requires a farmland acquisition qualification certificate, a farm management plan is submitted instead of the land use plan. The land acquisition fund procurement plan (Form No. 10) separates own funds, such as deposits, proceeds from selling stocks or bonds, gifts or inheritance and proceeds from selling real estate, from borrowings such as bank loans, and the total is checked against the expected contract price.

  4. 4. Joint application and the permit or refusal decision

    The seller and buyer jointly submit the land transaction contract permit application (Form No. 9) with the land use plan and fund procurement plan to the city, county or district where the land is located. There is no application fee, and after an investigation including site photographs, the authority issues a permit certificate or gives written reasons for refusal within 15 days. If no notice is given within that period, the permit is deemed granted on the day after the period ends, and a person refused a permit may file an objection or a claim for the purchase of the land within 1 month.

  5. 5. Use obligations after the permit and fact-finding surveys

    Land for one's own residential housing, farming or welfare facilities must be used for the permitted purpose for 2 years from acquisition, land for public works or regional development projects for 4 years, and land for other purposes for 5 years. The permitting authority conducts a fact-finding survey at least once a year, and when a violation is found it issues an order to perform with a period of up to 3 months and then imposes a charge for compelling compliance every year until compliance: 10% for leaving land unused, 7% for leasing it out, 5% for changing the purpose without approval and 7% for other violations. If the purpose must change, approval from the permitting authority is obtained in advance, and an objection to a charge for compelling compliance is filed within 30 days from notice.

Required documents

  • Land transaction contract permit application (Enforcement Rule of the Act on Report on Real Estate Transactions, Form No. 9)
  • Land use plan (items under Article 11 of the same Enforcement Rule; a farm management plan for farmland subject to a farmland acquisition qualification certificate)
  • Land acquisition fund procurement plan (Form No. 10 of the same Enforcement Rule)
  • Summary of the intended contract (parties, rights to be transferred or created, expected contract price)
  • Supporting documents for the intended use (resident registration and residence confirmation, farmer confirmation, business plan or other documents matching the purpose)
  • Documents showing the source of funds (deposit balances, planned loan details and the like, if requested by the permitting authority)
  • Land transaction contract change permit application (Form No. 11 of the same Enforcement Rule, when changing permitted details)
  • Letter of authorization (when submitted by a representative)

Fees

Typically several hundred thousand won in the industry · We advise after consultation depending on the intended use such as housing, farmland or business, the number of parcels, the volume of the land use plan, and whether a change permit or objection is also handled. There is no permit application fee, and the cost of issuing certificates is separate.

See fees and official charges for this service →

Legal basis and review date

  • Act on Report on Real Estate Transactions, Article 10
  • Act on Report on Real Estate Transactions, Article 11
  • Act on Report on Real Estate Transactions, Article 12
  • Act on Report on Real Estate Transactions, Article 13
  • Act on Report on Real Estate Transactions, Article 14
  • Act on Report on Real Estate Transactions, Article 16
  • Act on Report on Real Estate Transactions, Article 17
  • Act on Report on Real Estate Transactions, Article 18
  • Act on Report on Real Estate Transactions, Article 20
  • Act on Report on Real Estate Transactions, Article 26
  • Enforcement Decree of the Act on Report on Real Estate Transactions, Article 8
  • Enforcement Decree of the Act on Report on Real Estate Transactions, Article 9
  • Enforcement Decree of the Act on Report on Real Estate Transactions, Article 10
  • Enforcement Decree of the Act on Report on Real Estate Transactions, Article 14
  • Enforcement Decree of the Act on Report on Real Estate Transactions, Article 16
  • Enforcement Rule of the Act on Report on Real Estate Transactions, Article 9
  • Enforcement Rule of the Act on Report on Real Estate Transactions, Article 11
  • Enforcement Rule of the Act on Report on Real Estate Transactions, Article 12
  • Enforcement Rule of the Act on Report on Real Estate Transactions, Article 18

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • Because a land transaction contract concluded without a permit has no effect, the schedule for the down payment and balance should allow for the 15-day processing period and any supplement period.
  • If the land acquisition fund procurement plan changes, the changes may be submitted to the permitting authority until the registration date of the acquired land, so changes in loan amounts or own funds should be organized before registration.

Frequently asked questions

Do I need a permit to buy an apartment in a land transaction permit zone?
Yes, if it falls under the designation notice and the land area traded exceeds the threshold area. An apartment transaction includes the transfer of a land share as the site right, and the designation notice may specify the uses subject to the permit, so the notice is checked first. If the permit is granted for one's own residence, the buyer must live there in person for 2 years from acquisition.
What happens if I sign a contract without a land transaction permit?
A land transaction contract concluded without a permit has no effect. Concluding a contract without a permit or change permit, or obtaining a permit by deception or other improper means, is punishable by imprisonment of up to 2 years or a fine of up to 30% of the land price based on the individual officially assessed land price at the time of the contract. Acquisition through auction is not subject to the permit rules.
How long does a land transaction permit take?
The permitting authority must grant a permit, change permit or refusal within 15 days from receipt of the application. If no permit certificate, refusal notice or notice of pre-emptive purchase consultation is given within that period, the permit is deemed granted on the day after the period ends and a permit certificate is issued. If a supplement is requested, the schedule may extend by the supplement period.
Can I lease out land or a house bought with a permit?
In principle, no. Leasing it out instead of using it directly violates the use obligation and, after an order to perform, is subject to a charge for compelling compliance of 7% of the acquisition price. However, cases set by the Enforcement Decree, such as acquiring a detached house, apartment or neighborhood living facility, actually using it and leasing out part of it, are not treated as violations.
If I buy farmland in a permit zone, do I also need a separate farmland acquisition qualification certificate?
No. A land transaction contract permit for farmland is deemed to be a farmland acquisition qualification certificate. Instead, a farm management plan is submitted in place of the land use plan, and for farmland in rural areas the permitting authority also checks whether the requirements for the certificate are met.
Does an administrative agent handle land transaction contract permit applications?
Yes. The Hwang Yunsang Administrative Office reviews the permit zone, threshold area and permit criteria, prepares the land use plan and land acquisition fund procurement plan, prepares the permit application and submits it to the city, county or district, and prepares documents responding to supplement requests. It also prepares objections to refusals, applications for approval to change the use purpose, and opinion statements at the order to perform and charge for compelling compliance stages.

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Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

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This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.