NearSubway.com

 

 Best Accommodation

   Finder

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line 1

 

Line 2

 

Line 3

 

Line 4

 

Line 5

 

Line 6

 

Line 7

 

Line 8

 

Bundang Line

 

 

 

    Land Acquisition system for foreigners

 

 If a foreigner intends to acquire any land in Korea, in principle, the foreigner can purchase it regardless of the target land's zoning district. The foreigner only needs to report to the competent government office after the land acquisition. However, prior approval is required for acquisition of land in a military facility protection zone, cultural property protection zone, ecosystem conservation zone, or some islands that are used for military purposes. In addition, acquisition of land in Korea by a foreigner or a foreign corporation of a country that prohibits purchase of land in such country by a Korean citizen or a Korean company may be prohibited based on reciprocity.

 

  Introduction to the system

 

 There are three main laws governing land acquisition by foreigners in Korea. First, the Foreigner’s Land Acquisition Act prescribes general matters regarding foreigners’ local land acquisition. Second, the Foreign Investment Promotion Act deals with incentives for any foreign-investment company such as simplified investment notification procedures, tax reductions or exemptions and favorable conditions on purchasing government properties if they register under the said law and acquire any land in Korea. Thirdly, the Foreign Exchange Transaction Regulations stipulate matters regarding foreign exchange inflow and outflow related to non-resident’s acquisition of local immovables.

  

  

  Foreigner's Land Acquisition Act (FLAA)

  

 Any foreigner may acquire domestic lands merely by filing a notification in accordance with certain procedures except in a limited number of cases where permission is required. There are two types of notifications: land acquisition notifications and notifications of continuous holding of land. The documents that must be attached to a land acquisition notification, vary depending on the cause of acquisition (acquisition by contract, inheritance, auction, exercise of the right of repurchase, acquisition by a final court judgment, etc.).

In the case of permission as opposed to notification, the foreign purchaser must apply for and obtain a permit prior to the entry into any land purchase contract where the permission is required. If the lands are acquired for for-profit purposes, a foreign investment notification must be filed in addition to a land acquisition notification. If the foreigner acquiring the lands is a non-resident, a real property acquisition notification under the Foreign Exchange Transactions Act (FETA) must be additionally filed. Land acquisition by contract, non-contracted land acquisition, and continuous holding of land require notification after the fact.

  

 

[Land Acquisition Through Notification]

 

1. Land acquisition through contract

 

Subject of notification : Land acquired through a contractual agreement (excluding land subject to permission)

Period : Within 60 days from the agreement date of the contract

Place : Land Registration Division of the competent city/county/district office

Required documents :

Transcript of land registration;

Land acquisition contract;

Photo identification (when notification is filed through a proxy, IDs of both proxy and the foreigner acquiring land are required)

Processing period : On-the-spot (less than 3 hours)

 

 

2. Land acquisition by other causes than a contract

 

Causes of acquisition other than by contract : Inheritance, auction, exercise of redemptive right, final judgment of a court of law

Period : Within six months from the acquisition date [*1]

Place : Land Registration Division of the competent city/county/district office

Required documents : [*2]

Transcript of land registration;

Photo identification;

Document verifying the cause of acquisition other than by contract

Processing period : On-the-spot (less than 3 hours)

 

3.Continuous holding of land

 

Subject of notification : A Korean national or a Korean corporation intending to keep land after changing to "foreign national" as stipulated in the FLAA

Period : Within 6 months from changing nationality

Place :Land Registration Division of the competent city/county/district office

Required documents :

Transcript of land registration;

Document verifying change of nationality;

Photo identification

Processing period : On-the-spot (less than 3 hours)

 

 

[*1] In the case of :

Inheritance : Within 6 months from the date of predecessor's death

Auction : Within 6 months from the date of successful bid

Redemptive right : Within 6 months from the date of repurchase agreement or of deposit for repurchase

Judicial decision : Within 6 months from the date of the final court decision

 

[*2] In the case of :

Inheritance : Document verifying the inheritor

Auction : Notice of successful bid

Redemptive right : Document verifying repurchase (repurchase agreement)

Judicial decision : Final judgment of a court of law

 

 

Because the acquisition procedures for the lands requiring permission differ from those for the lands requiring notification, it is desirable for a foreigner acquiring domestic lands to check, in advance, whether the target lands require notification or prior permission prior to the entry into a contract.

Permission-required zones may be verified by a land use plan verification issued by the municipal office or through a phone call to the relevant department of the municipal office.

 

 

 

[Land Acquisition Subject to Prior Permission]

 

Subject :

Land in military installation reservations;

naval bases;

military air base areas;

cultural property protection zones;

ecosystem preservation districts;

islands necessary for military purposes;

green belt zones

 

Period : Prior to the contractual agreement

 

Place : Land Registration Division of the competent city/county/district office

 

Required Documents :

Transcript of land registration;

Land acquisition contract concluded by both parties;

Photo identification

 

Processing period : Within 15 days from the filing date of the application

 

* The head of city/county/district office must grant permission on the condition that the acquisition of land located in the said designated areas does not cause any inconveniences in such areas (Article 4.3 of the FLAA)

 

  

    Land Acquisition Procedures for Foreigners

 

 The laws and procedures applicable to a foreigner acquiring domestic lands vary depending on the purpose of acquisition, residence, and whether the foreigner is an individual or a corporation. The FLAA merely provides for the procedures to follow when a foreigner acquires lands in Korea (land acquisition notification, etc.). In addition to the land acquisition notification, acquisition of real property for profit purposes (real property lease, etc.) requires foreign investment notification, and acquisition by a nonresident under the FETA involves real property acquisition notification.

  

 

 1. Foreign-Investment Company and Domestic Branch of Foreign

 Company Where a foreigner incorporates a domestic company (foreign-invested company) under the FIPA to engage in profit-making activities in Korea and purchases real property (office buildings, factory sites, etc.) in the name of such corporation, the applicable laws are the FLAA, the FIPA, and the Registration of Real Estate Act, which provide for the following acquisition procedures. For detailed procedures, please refer to E-book

 

  2. Resident Foreign National

  Where a resident foreign citizen purchases a residential apartment unit or a domestic branch of a foreign corporation acquires real property, registration of transfer of ownership requires only filing of a notification with the competent municipal office within 60 days of the entry into the purchase contract and no notifications under the FETA (since only land requires acquisition notification). The applicable laws are the FLAA and the Real Property Registration Act (RPRA). For detailed procedures, please refer to E-book

 

  3. Non-Resident Foreign National

 In principle, a foreign national not residing in Korea must file a "Real Estate Acquisition Notification" pursuant to FETA, if he/she wants to acquire real estate in Korea prior to remitting the funds for acquisition. Then a land acquisition notification under the FLAA has to be filed (if the real estate is land) following the required procedures for "Registration of Transfer of Ownership" Applicable laws: FLAA, FETA, Registration of Real Estate Act For detailed procedures, please refer to E-book

 

  4. Overseas Korean National

 Since those with permanent residence of a foreign country are still Korean nationals, they are not subject to "Land Acquisition Notification" when acquiring land in Korea. They are also excluded from "Real Estate Acquisition Notification" pursuant to FETA whether they reside in Korea or not. In the case where Korean nationals abroad have a Korean registration number, they can follow the same procedures as Korean nationals when applying for real estate registration. However, in cases where such number has been cancelled, they need to obtain a "Registration Number for Real Estate Registration". Applicable laws: Registration of Real Estate Act * Since, unlike Korean nationals abroad, foreign citizens are considered foreign nationals, they need to file a "Land Acquisition Notification" pursuant to the FLAA and "Real Estate Acquisition Notification" pursuant to FETA A Korean holding a foreign citizenship, however, as opposed to those holding foreign permanent residence, is a foreigner under the FLAA, and is therefore required to file land acquisition notifications. Moreover, if such person is a non-resident in Korea, acquisition of domestic real property requires notification under the provisions of the FETA.

 

...............................................................................................................................................

 Star Parks Realty  02-6672-6000 ( Business hours )    Gilbert  010-6275-9494 ( 24 Hours  )

Fire Insurance Association B/D 15F, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea (150-010)