(Laws / Remittance)
Laws on Acquisition of Properties in South Korea
Real estate acquired by foreigners in Korea is governed by
i) the Act on Report of Real Estate Transactions, Etc.,
ii) the Foreign Investment Promotion Act, and
iii) the Foreign Exchange Transactions Act, etc.
With the EXCEPTION of certain land requiring government permission, a foreigner may acquire real estate in Korea only BY REPORTING and foreigners are NOT discriminated against in terms of procedure or regulations regarding acquisition.
In principle, the acquisition procedure includes a contract, payment, report and registration. In cases of foreign-invested companies acquiring real estate in Korea, the procedure differs from that of other types of foreigners in that the notification of foreign investment and registration of a foreign-invested company PRECEDES the contract.
The payable amount for the acquisition of real estate after due process can be freely remitted overseas.
Taxes on the acquisition of real estate include the acquisition tax, property tax, and the comprehensive real estate tax.)
Remittance of Funds
(1) Foreign-Invested Companies
▶Foreign-invested companies may remit funds in the name of
capital reductions, dividends, or liquidated funds.
▶Domestic branches may remit funds as operating revenue or liquidated funds.
(2) Resident Foreigners
▶Remittance of funds carried in from abroad requires notification to the head of a foreign exchange bank with documents certifying payment attached.
▶The acquisition of real estate from funds generated domestically requires notification
to the governor of the Bank of Korea.
(3) Non-Resident Foreigners
▶Overseas remittance of gains from disposal of real estate is available with documents notified for the acquisition.
▶If real estate acquisition has not been notified, notification should be made to the governor of the Bank of Korea.