Moving money from China to buy a home in Korea — legally
Many buyers assume the USD 50,000 annual quota can fund a Korean home. It cannot — the purchase form expressly forbids overseas property. The money must come through a lawful route, and Korea checks the source at permit and registration. This guide sets out what works and what does not, under both countries' rules.
- 1. The short answer: the USD 50,000 quota cannot buy a home
- 2. Splitting across relatives' quotas
- 3. What Korea checks
- 4. Money that can lawfully fund a Korean purchase
- 5. Wiring from an overseas account: steps and cost
- 6. Checklist
The short answer: the USD 50,000 quota cannot buy a home
Mainland Chinese individuals have an annual convenience quota to buy the equivalent of USD 50,000 in foreign currency. Since January 2017 the personal FX purchase form requires the stated purpose and a promise that the money will not be used for 'overseas property, securities investment, life insurance or investment-linked insurance' — capital-account uses that remain closed. SAFE said at the time this restated an existing rule.
Buying currency at a bank and wiring it to Korea for a home purchase therefore breaches the declaration. Stating 'travel' or 'study' and then using the money for property is a false declaration.
Splitting across relatives' quotas
Having several relatives each buy USD 50,000 and send it to the same foreign recipient is 'split purchasing', a pattern SAFE monitors. Once identified, the people involved go on a watch list: no quota for the current year and the next two, referral for anti-money-laundering investigation, and fines of up to 30% of the amount in serious cases. Korea sees the other end: large inbound wires need a source explanation, and in the permit zones the funding plan lists overseas remittances.
What Korea checks
- Permit zones (all Seoul, 23 Gyeonggi cities, 9 Incheon districts, until 25 Aug 2027): a funding plan showing savings, overseas remittance and loans.
- Non-residents: a real-estate acquisition report at a Korean FX bank before the money arrives — also the document you need to take sale proceeds out later.
- Suspicious cases go to the Financial Intelligence Unit and the tax office; unexplained funds can lead to the permit being revoked.
Money that can lawfully fund a Korean purchase
| Source | Workable? | Notes |
|---|---|---|
| Funds already lawfully abroad (overseas salary, savings, asset sales) | Yes | Wire from the overseas account; keep proof for the funding plan |
| Salary and savings earned in Korea | Yes | The simplest route for residents |
| A Korean mortgage | Conditional | ARC and Korean income required; Seoul LTV 40%, KRW 600M cap below 1.5B |
| Emigrant asset transfer (foreign permanent residency obtained) | Conditional | SAFE approval under the personal asset transfer rules; slow and document-heavy |
| Inheritance transfer | Conditional | Same rules, SAFE approval |
| The USD 50,000 personal quota | No | Expressly barred for overseas property |
| Relatives' quotas, underground banks, fake trade | No | Illegal; watch list, fines, possible criminal liability |
Wiring from an overseas account: steps and cost
If the money is already lawfully outside mainland China, the process is the same as for any foreign buyer: file the acquisition report at a Korean FX bank, then wire. A bank wire typically loses 1–3% to exchange markup and correspondent fees — KRW 5–15M on KRW 500M. Mid-market-rate transfer services usually cost 0.3–0.7% but cap single transfers, so buyers split over several days. Exchange-rate moves are often larger than any fee; converting in tranches after signing reduces the risk.
Checklist
- Confirm the funds fall in a 'Yes' or 'Conditional' row and gather proof.
- Permit zones: state overseas funds and their source accurately in the funding plan.
- Non-residents: file the acquisition report at a Korean FX bank before wiring; keep the original.
- Compare bank-wire and specialist-service costs; split large amounts.
- Do not borrow relatives' quotas or use informal channels.