From August 26, new rules for buying real estate for foreigners come into force in South Korea. Now purchasing homes in Seoul and most districts of the capital will be significantly restricted. Foreigners can only own property with the permission of local authorities and for personal residence purposes.
The restricted areas include Seoul, 23 municipalities in Gyeonggi Province (excluding Yangju, Ichon, Ichongbu, Tongducheon, Yangpyeong, Yeoju, Gapyeong, and Yeongcheon), and seven autonomous districts in Incheon (except Donggu, Ganghwa, and Onjin). In addition, all foreigners, companies, and organizations must obtain official approval before buying real estate. Transactions without permission are considered legally invalid.
The new rules apply to all types of housing: apartments, multi-storey houses, townhouses, and private homes. Only officetel apartments (business-class apartments) are exempt. In addition, foreigners who buy property must move in within 4 months and live there for at least 2 years. Therefore, renting the property is prohibited. If the property is bought for money, permission is required; for free transfers, this requirement does not apply.
If the rules are violated, the local authority must take legal measures within 3 months. If this requirement is not met, a fine of up to 10 percent of the land value per year may be imposed. Thus, the new rules for foreigners buying homes in Korea will be strictly controlled and enforced.
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