When a foreigner plans to acquire real estate in Korea, he/she must follow certain procedures and report his/her purchases to the appropriate authorities.
Real estate acquisition by foreigners in Korea is governed by the Act on Report on Real Estate Transactions, Etc., the Foreign Investment Promotion Act, and the Foreign Exchange Transactions Act. Regulations and restrictions on the acquisition, usage and development of real estate are applied uniformly to Koreans and foreigners alike.
Under the Foreign Exchange Transactions Act, funds for real estate transactions are largely divided into funds carried in or remitted from abroad, and funds generated domestically. When making a real estate transaction with funds carried in or remitted from abroad, both the carrying in of funds for real estate purchase and the carrying out of funds from real estate sales by either residents or nonresidents are guaranteed. However, when carrying out funds from the sales of real estate purchased using funds generated domestically, the Governor of the Bank of Korea should be notified.