Realtors receive brokerage fees from a client including costs for confirming facts related to ownership of the real estate concerned in the process of purchase, sale or lease of the real estate.
– However, the realtor cannot receive brokerage fees, if the real estate transaction was
nullified or cancelled due to the negligent or intentional action of the realtor.
In principle, the commission rate paid to realtors depends on the price at which the property is sold or purchased. The amount of commission is calculated by multiplying the price of the property by the commission rate. However, there exists a maximum limit to the amount of commission. Even if the calculated commission exceeds the maximum amount, then only the maximum amount of commission needs to be paid to the realtor.
The commission rate for general residential buildings and housing is as follows:

The commission rate is determined separately through mutual agreement by the client and realtor (between 0.2 ~ 0.9% for sales/purchase and 0.2 ~ 0.8% for lease) for residential buildings and property of over KRW600 million purchase price or over KRW300 million lease price or for property that is non-residential in nature.

Proceeds received from selling real estate, which was acquired by money transferred to Korea through a bank account, can be transferred freely to other countries without special restrictions.
Non-resident foreign nationals

– For non-resident foreign nationals, both the carrying in of capital into Korea needed for
the purchase as well as capital to be transferred to another country, which is derived
from the selling of real estate, has to be notified to a foreign exchange bank in Korea
(document verifying the acquisition or sale of real estate has to be submitted).

Resident foreign national (more than six months residence)

– For foreign nationals with residence in Korea, capital needed for the purchase of real
estate can be carried into the country without any restrictions or obligation for
notification.
However, capital derived from the selling or lease of real estate in Korea has to be
notified to the Bank of Korea when transmitting the amount to another country.

If an apartment, residence or officetel (commercial complex) was acquired by means of sale by parcels, then it is subject to the general procedure of land acquisition.The notification has to be filed at the competent city/”gun” county)/”gu” (district) office within 60 days from the date the contract of the sale of parcels was concluded. The necessary documents are an application form for land acquisition notification with a certificate of land registration, and the contractual agreement.

– In this case, the area of acquired land will be the size of land allotted to the apartment
or officetel.

Usually, the registration of transferring ownership shall be filed at the competent city/county/district office within 60 days from the date of completing the remaining payments.

A Korean national with permanent residence of a foreign country is not a foreigner pursuant to the Foreigner’s Land Acquisition Act. Therefore, the process according to the land acquisition notification is not necessary, but the inflow and outflow of capital need to be notified pursuant to the Foreign Exchange Transactions Act, because according to that Act, the overseas Korean national is a non-resident.Required documents for transferring ownership

1. Social registration card (if still existent);
2. If the social registration card is cancelled, then the following documents are needed:

– Proof of address or proof of residence (issued by an overseas public institution, or
notarized by a foreign notary office);
– Real estate registration number issued by the registry division of the Seoul District
Court (Tel. 82-2-530-1892).

When applying for the registration number, the following documents need to be submitted:

– Certificate of registration of overseas Korean (issued by a Korean embassy or
consulate overseas);
– Family register;
– Power of attorney (if proxy files application);
– Application through mailing service is available.

Acquisition for non-profit purposes

– It is possible to acquire land without establishing a separate branch or corporation.
However, in this case, leasing land or conducting other profit-making activities is not
allowed.
Acquisition for profit-making purposes
– According to Art. 614 of the Commercial Act, it is obligatory to establish a branch or
corporation.
Art. 614 of the Commercial Act
– According to Art. 614 of the Commercial Act, it is obligatory to establish a branch or
corporation.
Art. 614 of the Commercial Act
– Paragraph 1: A foreign company intending to engage in business in the Republic of
Korea shall appoint a representative in the Republic of Korea and shall establish a
business office.

If a foreign company establishes a separate branch or corporation after acquiring real estate for the purpose of lease or other profit-making activities, the company has to pay acquisition and registration tax when changing the ownership of the real estate. For that reason, it is recommended to acquire real estate after establishing the branch or corporation in order to avoid the payment of the taxes.In recent days, companies conclude contracts of sale & lease due to lack of capital. This also is a profit-making activity and therefore the foreign company needs to set up a branch or company in Korea.

– Even if a foreign company does not have a business office in Korea, it is possible to
register the acquired real estate. The registration number for real estate registration
can be obtained at the competent city/”gun” (county)/”gu” (district) office.

Required documents for the issuance of a registration number are: corporate registration issued by the relevant country, proof of the status and address of the representative.

For a resident foreign national:

– The resident foreign national should file a “real estate acquisition notification” at the
competent city/”gun” (county)/”gu” (district) office and register transfer of ownership
within 60 days after conclusion of the contractual agreement. It is not necessary to file
notification pursuant to the Foreign Exchange Transaction Act.
– The foreigner registration certificate or transcript of branch registration replaces social registration number and documentary proof of address.

For a non-resident foreign national;

– A non-resident foreign national has to file a “real estate acquisition notification” prior to
remitting the capital for real estate acquisition pursuant to the Foreign Exchange
Transaction Act.
– If the real estate is land, then a “land acquisition notification” has to be filed at the
competent city/county/districts office and register transfer of ownership.The Foreigner’s Land Acquisition Act only stipulates

laws concerning the acquisition of land. If other real estate (buildings) or other rights (jonse, mortgage, etc.) are acquired, then it is unnecessary to process notification according to the Foreigner’s Land Acquisition Act. But it is not common in Korea to buy and sell buildings and land separately.A registration number needed for the registration of real estate can be obtained at the immigration office (for individual non-resident foreign nationals), or at a city/”gun” (county) /”gu” (district) office (for a branch or company)

A foreign national can acquire and own land in Korea just as a Korean national without any restrictions, even when not residing in Korea.

– Regulations regarding land ownership and its use and development are applied to
foreign nationals under the same conditions as for Koreans.

However, exceptions exist for areas under protection for military use, cultural property protection zones as well as ecosystem preservation districts, for which prior permission is required. (Article 4 of the Foreigner?s Land Acquisition Act)

The agency in charge of factory establishment is the Korea Industrial Complex Corporation (KICOX). Its headquarters are located in Seoul with ten branches across the nation. For advice regarding factory establishment you can call 1566-3636 from anywhere in Korea and get consultation about factory establishment. Alternatively, please refer to the following contact points or check out their English web site at http://www.kicox.or.kr/english/e-Home.html.

Invest KOREA helps foreign investors who want to establish a factory in Korea to go through the administrative procedure:

A foreign investment zone is designated in order to attract large-scale foreign investment in locations where the foreign investor wants to set up a factory.The requirements for the designation of foreign investment zone is a foreign investment of more than US$30 million.The tax benefits are the same as for high-technology businesses, and various benefits are given for the development and establishment of infrastructure such as harbors and roads. Furthermore, a 100% reduction of rent is given for land owned by the government.