South Korea requires 2 year residency for foreign land buyers through Aug. 25

South Korea extended its foreign land transaction permit system for another year Aug. 20, keeping strict pre-approval and residency rules in place across the capital region rather than lifting them.

Capital region restrictions extended to 2027

The Ministry of Land, Infrastructure and Transport (MOLIT) renewed the Foreign Land Transaction Permit System for designated zones through Aug. 25, 2027. The rules cover all 25 districts of Seoul, 23 cities and counties in Gyeonggi Province and seven districts in Incheon.

Under the policy, foreign nationals and foreign corporations can't simply report a real estate purchase after closing. Instead, buyers must obtain local government approval before signing any contract to acquire residential property, including apartments, condominiums and single-family houses. Enforcement Decree amendments that took effect Feb. 10, 2026 also require applicants to submit detailed funding plans and residency verification.

Mandatory two-year residency and prior approval rules

The framework imposes strict post-purchase conditions on foreign buyers in designated zones:

• Prior approval: Contracts signed without local district permission are legally void.
• Four-month move-in deadline: Buyers must occupy the home within four months of permit clearance.
• Two-year residency requirement: The property must serve as the buyer's primary residence for at least two consecutive years.
• Financial scrutiny: Buyers must submit verified proof of funds within 30 days.

Violating the residency mandate or submitting false financing reports carries fines up to 10% of the property value, alongside permit revocation and contract rescission.

Impact on remote workers and overseas buyers

Outside the capital region, foreign buyers in areas like Busan, Daegu and Jeju can still purchase property under standard post-closing reporting rules without mandatory occupancy periods.

Inside Seoul and surrounding commuter hubs, the rules effectively lock out non-resident investors and short-term visitors. Digital nomads planning on settling in South Korea must hold a long-term visa that legally permits at least two years of continuous stay before attempting to buy a home in designated zones. Remote workers eyeing residential acquisitions in the capital should budget for long-term leases instead, as failure to fulfill the two-year primary residence condition triggers immediate financial penalties and unwinds the transaction.