Bringing money into Korea for a property purchase
The money side of a Korean purchase has two traps: a foreign-exchange report that non-residents must file before the funds land, and transfer costs that quietly eat 1–3% of the amount. Both are avoidable if you handle them in the right order.
- 1. Resident or non-resident? It decides the paperwork
- 2. The non-resident real-estate acquisition report
- 3. Opening the receiving account
- 4. What a large wire really costs
- 5. The funding plan and what banks ask
- 6. Getting the money out when you sell
Resident or non-resident? It decides the paperwork
Korean foreign-exchange law sorts you by residence, not passport. A foreigner who has lived in Korea for 6 months or more (typically with an Alien Registration Card and a domestic job or business) is a resident; anyone else is a non-resident. Residents move their own money in and out like Koreans do, with the bank's routine source-of-funds questions on large amounts. Non-residents have one extra filing.
The non-resident real-estate acquisition report
Under the Foreign Exchange Transactions Regulations, a non-resident acquiring Korean real estate reports the acquisition to a foreign-exchange bank (any major bank branch handles it) before the purchase funds are brought in. You bring the draft contract or permit, passport, and proof of the overseas source; the bank stamps a report certificate.
The certificate matters most at the exit. When you sell, the bank will only remit the proceeds abroad against that original acquisition report plus the sale contract and tax clearance. Buyers who skipped it face a retroactive filing, possible fines and weeks of delay. File it even if the bank clerk seems unsure — ask for the 외국환 담당 (FX desk).
Opening the receiving account
Residents open a normal KRW account with their ARC. Non-residents can open a non-resident KRW account (비거주자 원화계좌) with a passport and a reason for the account — the property contract works — though some branches only do this at their FX-specialist locations. Bring the seller's account details too: the balance is usually paid by domestic transfer on closing day, and daily transfer limits on a new account can be raised in advance if you ask.
What a large wire really costs
At these amounts the difference between routes is several million won — comparable to the agent's fee. Get two quotes the week before closing, and remember that the KRW/USD rate moves; a 1% move in the rate is bigger than any fee, so many buyers convert in tranches once the contract is signed.
| Route (approx., KRW 500M / ~USD 360k) | Typical total cost | Notes |
|---|---|---|
| Bank wire, sender's bank rate | 1.0–3.0% (KRW 5–15M) | Markup on the exchange rate is the main cost; SWIFT fees are minor |
| Bank wire in USD, convert in Korea | 0.7–1.5% | Korean banks' USD→KRW spreads are tighter; ask for a preferential rate (우대환율) on large amounts |
| Specialist transfer service (mid-market rate) | 0.3–0.7% | Per-transfer limits apply; buyers split over several days; confirm the service supports non-resident recipient accounts |
The funding plan and what banks ask
In the permit zones you already submitted a funding plan to the district office; the bank will ask the same questions. Prepare: bank statements showing the money existed for a reasonable period, a sale contract or payslips if the money came from an asset sale or salary, and, for gifts from family, a simple gift statement. Korea taxes gifts received by residents; a non-resident receiving a gift of foreign assets abroad is generally outside Korean gift tax, but a resident receiving money from a parent overseas to buy a Seoul apartment is not — the gift-tax calculator gives the number.
Getting the money out when you sell
Sequence: sell, pay capital gains tax (and obtain a tax clearance certificate from the tax office), then go to the bank with the acquisition report, the sale contract, the tax certificate and the registry showing the transfer. The bank remits the net proceeds. If a corporate buyer withheld tax at source, the withholding receipt substitutes for part of the clearance. Allow two to four weeks; the bank's compliance team reviews these individually.