South Korea

Introduction:

The Korean peninsula is located in North-East Asia. It is surrounded by the ocean on three sides, making it a unique geographical location. Korea’s total land area is 100,033 square km, neighboring Japan to the east and China to the west.

The total population of Korea is 51,448,183, as of July 2015, ranking 26th globally by country. Out of the total population, roughly 20% live in Seoul, the capital city of Korea. Other large and economically advanced cities such as Busan, Incheon, Daegu, Daejeon, Gwangju and Ulsan have higher population densities than other cities in Korea.

Korean real estate market:

The Korean real estate market is continuing to make headway in 2016. In fact, many global companies are eyeing Korea’s office buildings and as such, foreign investment accounts for 70 percent of the investment in the domestic office building market. FYI, the Seoul property market is 50 percent larger than that of Hong Kong and about 100 percent larger than that of Singapore.

Uniquely Korean:

Most Koreans in urban areas live in high-rise and multi-story dwellings.

The Koreans have a unique heating system called ‘Ondol’. Heat is carried through pipes installed beneath the floors.

Korea’s unique ‘jeonse’ system is especially beneficial to the landlord, as it provides regular income in the form of rent with a bulk deposit at the beginning of term of the agreement.

Language:

In 1446, a Korean alphabet, called Han-gul, was developed and has been used ever since.

Foreign Buyer Legal/Tax Implications:

Land purchase and sales regulations in Korea are comparatively liberal and does not restrict foreigners from buying property, asides from the FLAA Act or the Foreigner’s Land Acquisition Act. Please seek professional advice from a qualified lawyer and tax adviser before attempting to purchase real estate in Korea.