According to the law, 'foreigners, etc.' are not only individuals without Korean nationality. It also includes corporations, organizations, and foreign governments and certain international organizations established under foreign laws. Even a domestic corporation is considered a 'foreigner, etc.' if more than half of its shareholders or members, or the directors executing its business, are foreigners, or if foreigners or foreign corporations hold more than half of its capital or voting rights (Article 2, Paragraph 4).
There are cases where a person who was a Korean national loses their nationality or the equity structure of a domestic corporation changes, resulting in them becoming a 'foreigner, etc.' If you want to continue holding real estate you already own, you must file a continuing holding report within 6 months from the date you become a 'foreigner, etc.' (Article 8, Paragraph 3).
## Reporting Deadlines by Acquisition Cause: Sales - 30 days, Gifts - 60 days, Inheritance - 6 months
Reporting deadlines vary depending on how you acquired the real estate.
- Sales Contract: You must file a real estate transaction report within 30 days from the contract conclusion date. Foreigners are also included as parties to the transaction (Article 3).
- Gift and Other Contracts Not Related to Sales: You must file a foreign real estate acquisition report within 60 days from the contract conclusion date (Article 8, Paragraph 1).
- Inheritance, Auction, Exercise of Right of Redemption, Final Judgment, Merger of Corporations, New Construction, etc.: You must file a report within 6 months from the date of acquisition (Article 8, Paragraph 2, Enforcement Ordinance Article 5).
Attach documents showing the cause of acquisition to the report. For gifts, it's the gift contract; for inheritance, it's documents proving inheritance; for auction, it's the auction confirmation; and for final judgment, it's the judgment (Enforcement Rule Article 7). The responsible public official will verify the certificate of registration through administrative information sharing. According to Government 24, foreign land acquisition reports can be submitted online, in person, or by mail, and are processed within 3 hours during working hours without any fees. Family relationship documents issued overseas often require translation and certification, so it's best to allow ample preparation time.
Failure to file a report or providing false information will result in a fine. Acquisition reports based on gifts and other contracts are subject to a fine of up to KRW 3 million, and acquisition reports for inheritance and other contracts, as well as continued possession reports, are subject to a fine of up to KRW 1 million (Article 28, Paragraph 4 and 5).
## Land Requiring Permission Before Contract
Some areas’ land are subject to pre-contract permission, not reporting. Foreigners and others acquiring land in the areas below must obtain land acquisition permission from the city, county, or district office before entering into a contract (Article 9, Paragraph 1).
- Military base and military facility protection areas, island areas designated for national defense purposes, areas near military base locations, etc.
- Designated cultural heritage and protection areas, natural monuments and protection areas
- Ecological and scenic conservation areas, wildlife special protection areas
The application must include an agreement between the parties to the land acquisition contract, and there is no fee. The processing period is 30 days for national defense purpose areas (extendable within a 30-day range), and 15 days for other areas (Article 6, Paragraph 3 of the Enforcement Decree). Land acquisition contracts entered into without permission are invalid and may result in imprisonment for up to two years or a fine of up to 20 million won (Article 9, Paragraph 3, Article 26, Paragraph 2).
## Songdo·Incheon Foreign Land Acquisition Permission Areas, Until August 25, 2027
The public notice for designation of areas requiring land transaction permits allows for the designation of permit applicants and the purpose/classification of land (Article 10, Paragraph 3), so there are areas designated exclusively for foreigners. The Ministry of Land, Infrastructure and Transport designated the Seoul Metropolitan Area as an area requiring land transaction permits in August 2025 and announced an extension of the same scope for one year on August 20, 2026.
- Designation Period: August 26, 2026 to August 25, 2027
- Area: All of Seoul, 9 autonomous districts of Incheon (Michuhol, Yeonsu, Namdong, Bupyeong, Gyeongyang, Seohae, Geomdan, Yeongjong, Jemulpo - excluding the former Donggu area), and 23 cities/gun of Gyeonggi (Suwon, Seongnam, Goyang, Yongin, Bucheon, Hwaseong, etc.)
- Applicants: Foreigners involved in the transaction of single-family, multi-family, multi-story, apartment, and condominium properties, exceeding 6㎡ in residential areas and exceeding 15㎡ in commercial areas.
When the designation was announced in 2025, it stated that foreigners who cannot reside for two years after acquisition are not eligible for a permit, and they must also submit a financing plan, supporting documents, visa type, and overseas borrowing/remittance history. If a foreigner wants to buy an apartment in Songdo, they must obtain this permit before signing the contract. The land transaction permit application must include the land use plan and the acquisition fund procurement plan (Article 11, Paragraph 3), and contracts made without a permit are invalid (Article 11, Paragraph 6). Obtaining a land transaction permit does not require a separate permit for foreign land acquisition (Article 9, Paragraph 1, Exception).
## Reporting to Foreign Exchange Banks When Non-Residents Purchase with Overseas Funds
When a non-resident who does not have a domicile or residence in Korea purchases domestic real estate, you need to check whether a reporting is required under Article 9-42 of the Foreign Exchange Transaction Regulation.
- Foreign Exchange Bank Reporting: If the funds are obtained through remittance from abroad or brought in directly, you must report to a foreign exchange bank with documents proving the transaction attached to the Real Estate Acquisition Report (Receipt).
- Cases Where Reporting is Not Required: This includes cases where a foreign non-resident acquires property through inheritance or gift, rents for personal, family, or employee residence, or when a Korean non-resident acquires it.
- Bank of Korea Reporting: Acquisitions by non-residents that do not fall under the above two cases must be reported to the Governor of the Bank of Korea.
We recommend that you inquire with your transaction bank before sending money and ensure that your documents, including the real estate report, contract, amount, and date, match. Hwang Yun-sang Administrative Agent Office assists with the preparation and submission of foreign resident real estate acquisition and continued possession reports, foreign resident land acquisition permit applications, and land transaction contract permit applications, and prepares documents for submission to foreign exchange banks. When acting as an agent, a power of attorney and a copy of the identification of the person granting the power of attorney are required (Article 7, Paragraph 4 of the Enforcement Regulations), and fees will be provided after consultation. Whether a permit is granted and the outcome of the processing depend on the judgment of the competent authority, so individual verification is necessary for each case.