Now foreigners and foreign companies in Korea have liability for tax payment when disposing real estate. 

This is to prevent foreigners or foreign companies from departing or withdrawing from Korea without paying transfer income tax.The Ministry of Finance and Economy announced thorough levy on income taxations will be preceded and laws on income tax corporation tax will be revised. 

Modifications will be made to withhold taxation of 10% from the capital gain when acquisition costs from real estate sold be foreigners or foreign companies is difficult to verify. 

In other cases where the acquisition costs and transfer prices can be confirmed, the smaller amount between 10% of transfer price and 25% of the marginal profit from the transfer price will be withheld. 

The obligator who pays income tax, becomes the real estate purchaser and is responsible for any omitted taxation.(Article shortened)Source written by Byeong-tae Jin, Yonhap News Agency, on Sept. 8, 2003