The foreigner land-transaction permit, explained
Since August 2025 a foreigner cannot buy housing in Seoul, most of Gyeonggi or central Incheon without a district-office permit that commits them to living in it. Here is exactly who it catches, what it asks for and what it costs to ignore.
- 1. The zone and the dates
- 2. Who counts as a foreigner
- 3. Which properties
- 4. How to apply
- 5. The residence obligation
- 6. Penalties
- 7. Practical answers
The zone and the dates
The Ministry of Land designated the zone on 26 August 2025 for one year and renewed it on 26 August 2026 through 25 August 2027. It covers all 25 districts of Seoul, 23 cities and counties in Gyeonggi (Suwon, Seongnam, Goyang, Yongin, Hwaseong, Anyang, Bucheon and the other cities ringing Seoul; the exact list is on the district office notice) and 9 districts of Incheon (Michuhol, Yeonsu, Namdong, Bupyeong, Gyeyang and the Seo-gu area including Geomdan and Yeongjong). If in doubt, the district office confirms in one phone call.
The ministry reported that foreign purchases in the capital region fell about 27% in the ten months after designation, with Chinese buyers — 72% of foreign purchases in the region — down 24% and American buyers down 40%. The government cited that as the reason to extend.
Who counts as a foreigner
Any individual without Korean nationality, regardless of visa. Permanent residents (F-5), marriage visa holders (F-6) and overseas Koreans with foreign citizenship (F-4) are all covered; there is no ARC exemption. Foreign companies, and Korean companies where foreigners hold 50% or more of the capital or voting rights, are also covered — which has tripped up some foreign-funded rental businesses.
Korean nationals living abroad are not foreigners for this purpose, but since 20 October 2025 all of Seoul and 12 Gyeonggi cities are also a general land-transaction permit zone with its own 2-year residence rule for everyone, so a Korean buyer meets a similar obligation.
Which properties
| Property | Permit needed? |
|---|---|
| Apartment, villa, row house, multi-family, detached house | Yes — any size over 6㎡ of land share in residential zones (15㎡ in commercial zones) |
| Officetel | No — classed as a commercial building, not housing |
| Shop, office, land | No under the foreigner rule (general permit zone rules may still apply in Seoul) |
| Jeonse or monthly rent (as tenant) | No — the permit concerns ownership only |
| Inheritance, gift, court auction | No — the permit applies to purchase contracts |
How to apply
File at the district office (구청) where the property sits, or through the government's online land-transaction service. The application includes: the permit form; a draft contract or the seller's written intent; the purpose (own residence); a self-certified funding plan (자금조달계획서) showing how much comes from savings, sale of other assets, loans and overseas remittance, and your visa status; proof of funds such as bank statements; and passport and ARC copies.
The statutory processing time is 15 days. The office may ask for translations of foreign bank statements. You cannot sign a binding sale contract before approval — a contract signed without a permit is void — so agents draft a conditional pre-agreement with a small holding deposit that is refunded if the permit is refused.
The residence obligation
The permit is conditional on moving in within 4 months of acquisition (the registration date) and using the home as your actual residence for 2 years. You must register your address there (전입신고 for Koreans; 체류지 변경 for foreigners) and the district office checks — by visit, by utility usage, by cross-referencing immigration records.
Renting the home out, leaving it empty or living elsewhere during the 2 years is a breach. Selling before 2 years is also a breach unless the office approves a change of use for reasons like job transfer abroad, illness or family circumstances.
Penalties
The office first issues an enforcement order to comply within 3 months. If ignored, it imposes an enforcement fine (이행강제금) of up to 10% of the acquisition price — and can repeat it annually until you comply. The permit can be revoked, which unwinds the purchase. Suspicious cases are referred to the Financial Intelligence Unit and the tax office; funds that entered Korea without a foreign-exchange report attract their own penalties.
Practical answers
Can I buy with my Korean spouse? If the title is in the Korean spouse's name only, no foreigner permit is needed; joint title means yes. Can a non-resident get the permit? Legally yes, but the 4-month move-in makes it impossible to hold as an investment — the permit is designed for owner-occupiers. Does it apply to a second home? Yes, and the acquisition tax also jumps to 8% in regulated areas, so a foreigner's second Seoul home is now both expensive and hard to justify to the district office.
What about buying outside the zone — Busan, Daegu, Jeju? No permit; sign, then report to the district office within 60 days. The 2-year rule does not apply.