South Korea Home Loans and Foreign Buyer Rules

Foreign nationals may acquire housing in Korea after reporting the transaction to the local authority, within 60 days of the contract under the Foreign Exchange Transactions Act and also under the real estate reporting rules. From August 2025 all 25 districts of Seoul, together with designated areas in Gyeonggi Province and Incheon, became permit zones requiring prior approval and a declaration that the buyer will live in the property, with a move-in within a few months and a minimum stay. Some transactions such as inheritance and officetels have been reported as exempt. The designation was due to run to August 2026 and may have been extended, so check the current status with the Ministry of Land, Infrastructure and Transport. Our South Korea buying guide summarises the process.

Outside the zones, purchases are lighter on paperwork but still require reporting and a Korean bank account for transfers. Search houses, commercial property and land in our listings.

The Bank of Korea raised its base rate from 2.50% to 2.75% in July 2026 and to 3.00% on 27 August 2026, its second straight increase, citing inflation above target alongside household debt and Seoul home prices. Because roughly two thirds or more of Korean mortgages float, borrowers feel the move quickly. Fixed-rate loans exist but typically cost more. Use the mortgage calculator to test a higher-rate scenario, and check the Bank of Korea for later decisions.

KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup are the major banks. Foreigners with a resident visa (such as F-2, F-5 or F-6) and Korean income can borrow on the same footing as Koreans, subject to rules on loan-to-value and the debt-service ratio (DSR). Regulators cap borrowing for homes in Seoul and its metropolitan area, with lower loan-to-value for owners of multiple homes and a ban on some loan types. Non-residents and those on short-stay visas will find domestic lending very limited, and banks have grown more cautious about loans against overseas income. A foreign buyer abroad should plan on funding the purchase in cash.

Acquisition tax is charged on the purchase at rates that vary with price and number of homes owned, and rates for those buying a multiple home in regulated areas can be high. Brokerage fees follow a sliding scale set by the local government. Annual property and comprehensive real estate holding taxes apply, with additional surcharges for multi-home owners. Foreign buyers who hold a home may also face rules that tax non-resident owners differently, so ask a Korean tax adviser. Many Korean tenants pay a large refundable deposit, called jeonse, instead of monthly rent. Investors who buy to let should understand this system, since landlords can use deposits to fund purchases, and it affects exit if deposits must be returned.

1. Check whether the target district is a permit zone and obtain approval if required.
2. Sign the contract through a licensed agent and pay a 10% deposit.
3. If borrowing, apply with the bank for valuation and approval.
4. Pay the balance, register ownership and report the transaction to the authorities.
5. Declare the purchase to your foreign exchange bank if funds came from abroad.

See cheap properties and under 100,000 to check how little stock sits at that level, and review the South Korea market analysis and South Korea listings.