In recent years, more foreigners living in Korea have started exploring the idea of buying property—especially as long-term stays become more common.
Despite rising housing prices and strict loan requirements, owning a home is still possible, even for non-citizens.
This guide explains how the Korean real estate market works in 2025, what to expect when applying for a mortgage, and how the process may differ depending on where you live—whether in Seoul or smaller cities.
Table of Contents :
- Why More Foreigners Are Eyeing Korean Real Estate in 2025
- Overview of the 2025 Housing Market: Seoul vs. Other Cities
- Can Foreigners Get a Mortgage in Korea? Rules & Requirements
- Step-by-Step Guide to Buying Property in Korea
- Hidden Costs: Taxes, Fees, and Other Expenses
- What If You Can't Buy Yet? Smart Rental Options for Foreigners
- Real Stories: How Foreigners Actually Bought Homes in Korea
- FAQ: Common Questions About Buying Property in Korea
Why More Foreigners Are Eyeing Korean Real Estate in 2025
Korea has long attracted foreign residents—from expats and diplomats to retirees—who are shifting from short-term rentals to longer-term investments in homes. As of mid‑2024, roughly 95,000 residential properties were owned by foreigners, marking a nearly 9% year-over-year increase. Seoul alone accounts for almost 25% of foreign-owned homes.
One key driver is the lack of attractive global investment options post-pandemic. Additionally, Seoul's housing prices continue to outpace national trends, rising about 3.6% year-over-year into early 2025.
Although prices have cooled nationally, Seoul's gap with regional cities keeps widening. As of February 2025, per-square-meter cost in Seoul hit ₩13.4 million (~$9,300)—more than 2.3 times the national average. While some areas show slight declines, Seoul continues its steady climb.
Overview of the 2025 Housing Market: Seoul vs. Other Cities
Understanding regional differences is crucial. Here's the snapshot:
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Seoul area: +3.63% YoY; ₩13.4 M/m² (~$9,300/m²)
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Capital region overall: +1.68% YoY; around ₩8.5 M/m²
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Gyeonggi & Incheon: Small gains, between +0.3–0.6%
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Major regional cities (e.g., Busan, Daegu): Prices down 1–4%
Seoul remains the hot zone, attracting both affluent locals and foreign buyers. High demand and limited supply continue to drive prices.
Low interest rates have also contributed. The Bank of Korea has lowered its benchmark rate several times, now at 2.25–2.75%, to stimulate growth. But this has made household debt riskier, triggering tighter mortgage rules, especially in Seoul.
Can Foreigners Get a Mortgage in Korea? Rules & Requirements
The short answer: Yes—but the process is stricter than for locals.
Loan eligibility & documentation
Foreign applicants typically need a long-term visa like F-2 or F-5. Banks also ask for proof of stable income, local employment, and credit history.Down payment
Foreign buyers usually need 30–50% down, compared to 20–30% for Korean citizens.Higher interest rates
Rates for foreigners tend to be 0.5–1.5% higher than local rates, often ending up in the 4–7% range.Loan limits
In Seoul and nearby areas, mortgages are capped at ₩600 million (~$442,000), regardless of income or home price. Owning multiple properties can disqualify you from further loans.Regulatory scrutiny
Seoul officials now monitor foreign-funded purchases more closely. If your funds come from abroad, expect extra documentation and verification.
Many foreign buyers on expat forums agree: You’ll need a large down payment, proper visa status, and a clean financial profile. Some even suggest skipping the loan process and buying in cash if possible.
How to Buy Property in Korea as a Foreigner
Step‑by‑step guide from house hunting to registration
Start by packing the right documents. You need a passport, alien registration card, visa proof, income statements, and employment or business records. A Korean bank account is almost always required.
Next, find a trusted real estate agent. Many agents specialize in working with foreigners. They can explain the process, translate key documents, and guide you through negotiations.
Once you find a property, sign a basic agreement (jeonse/mate) and put down a deposit. Then apply for a mortgage if needed. Banks may require translated documents or notarized foreign income proofs.
After financing is sorted, sign the official purchase contract at the district office. Next comes registration at the local registry. Foreigners must also report property ownership to immigration and possibly pay an acquisition tax. Finally, local property taxes and HOA fees begin.
Hidden Costs: Taxes, Fees, and Other Expenses
What foreign buyers should budget for beyond the price tag
Buying property isn’t just about the listing price. Budget for acquisition tax, which can range from 1% to 4% depending on location and property type. In Seoul or high-demand areas, this can be closer to 4%.
Then add registration fees and agency commissions, usually around 0.5% to 1%. You’ll also likely pay for translation, notary services, and document certification. These are essential for legal clarity.
Don’t forget ongoing costs like property tax and maintenance fees. Property tax rates vary by region, averaging around 0.1% to 0.4% of property value. Monthly building maintenance (HOA or management fee) depends on the property’s size and amenities.
If you decide to sell later, you’ll face capital gains tax, which can be high for short-term gains. It’s a good idea to speak with a tax advisor before buying.
What If You Can't Buy Yet? Smart Rental Options for Foreigners
Alternative paths: jeonse and monthly rent with security backup
Not ready to buy? Korea offers two major rental options: jeonse and wolse.
Jeonse is a large lump-sum lease deposit paid upfront, typically 50%–80% of the home’s value. You don’t pay monthly rent, and you get the deposit back at the lease end. It reduces monthly expenses but requires lots of cash.
Wolse (monthly rent) mixes a smaller deposit with monthly payments. Deposit here is usually 10%–30%, and rent is adjusted accordingly.
For either option, consider using a deposit insurance plan to protect your money in case the landlord defaults. This is especially important for foreigners, since legal recourse can be slower and more complex.
If purchasing isn’t possible now, these rental options can offer stability and time to plan—while living in desirable areas like Seoul and beyond.
Real Stories: How Foreigners Actually Bought Homes in Korea
Insights from expat experiences
One couple shared how they bought a two-bedroom apartment in Incheon. They had F-2 visas and secured a 40% down payment. The wife’s Korean credit history helped them get a better interest rate.
A single professional in Busan paid entirely in cash. He said the process was faster and paperwork simpler without a loan.
Another family in Seoul applied for a mortgage but hit the ₩600 million cap. They solved it by buying a smaller unit in Guri city. They viewed it as a compromise on location but a win on loan approval.
These stories show multiple paths: part-cash, part-loan, smaller towns, or full financing. Each case required local bank relationships and trusted real estate agents who understood foreigner needs.
FAQ: Answers to Real Questions from Foreigners
Clear answers to the most practical concerns
Q1: Can foreign buyers use short-term tourist visas?
No. You must have long-term residency, such as F-2 or F-5, to qualify for mortgages or legal purchases.
Q2: Is joint ownership with a Korean resident possible?
Yes, you can co-own property with a Korean spouse or partner. It may improve loan chances, but both names appear on the deed and taxes apply to both.
Q3: Do I need a Korean bank account to pay the seller?
Yes. International transfers are allowed, but local account verification is easier and faster.
Q4: Can rental income be earned if I buy and rent out the property?
Yes. But you’ll need to register as a landlord, report rental income, and pay taxes accordingly. Consider consulting a tax advisor.
Q5: How long does it take to complete a purchase?
Typically 8–12 weeks. That includes document gathering, mortgage approval, contract signing, and property registration.
Buying property in Korea as a foreigner is doable, but it requires careful planning. Visa status, down payment size, loan limits, and taxes all play a role.
Seoul offers prestige and high potential returns, but it's expensive and regulated tightly. Elsewhere, you’ll find more affordable options and fewer restrictions.
If you can’t buy yet, consider jeonse or monthly rent with deposit insurance. These options give flexibility while you decide if homeownership is the right step.
Before making a move, talk to a local mortgage advisor and tax professional. Their guidance can save time, money, and legal headaches.
Homeownership in Korea can be a meaningful way to build stability. Whether you choose Seoul or other cities, preparation makes all the difference.
