Korean Job Discussion Forums

[saint_moi]

Well, I'm intending to buy a year lease on an apartment. It's a new modern building and as stylish as Rodney Dangerfield!
I know, or think, Mr Pink atleast has bought into his own apt. here, question is: has anyone else here? If so, is there any advice you could shoot my way. Any do's and don't's?

First of all, I've been told that it's Quite a risk buying a lease as many entrepeneur wannabes try their hand at real estate and go bankrupt and you could loose your $$ and not get it back later!!



Buying a lease on a Korean apt. for dummies...

[VanIslander]

The longest bridge in Korea will join Busan with Geoje Island, about a 45-minute drive, when its already early construction efforts are finished in five to seven years. That will mean a HUGE increase in traffic and tourism for the incredibly underappreciated "Island of Fantasy". And with the bullet train from Seoul to Busan, that makes the second largest island in Korea more accessible than ever.

I have my eye on some land in nearby rural coastal island valleys, close to relatively large communities (50,000 up to 200,000 people). Industry on the island is strong, with world-class shipbuilding ports by Samsung and Daewoo and agricultural products as exotic as lemons and pineapples.

Before I seriously consider the possibility of buying some property I want to hear about several other foreigners' experiences in that regard.

How are foreigners treated? What extra costs or delays, if any, should one expect?

[Gord]

[saint_moi]

In any democratic free market country you can buy just what u like if u have the $

[sadsac]

VanIslander wrote:
Before I seriously consider the possibility of buying some property I want to hear about several other foreigners' experiences in that regard.

How are foreigners treated? What extra costs or delays, if any, should one expect?

Gord is correct in his statement, foreigners may purchase apartments but not undeveloped land, unless for business use and then only in the international economic zones. If you are going to purchase undeveloped property for the purpose of building a house you may, but not for any other reason. Foreign ownership of land in Korea, aside from the US military is miniscule.

[saint_moi]

So let me pop the question again...

Have any of you bought your own leases on your apartments?
If so, do u have any advice? Could you share some of your experience please.

[schwa]

[dogbert]

[VanIslander]

DIG,
MAN
.
.
.
DIG!

[dogbert]

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Q & A about Laws



Question 1.

When can foreigners acquire land like Koreans?


Answer 1.

◆ The "Foreigner's land acquisition Act" was amended at a plenary session of the National Assembly on May 15, 1998.

◆ The Amended Act came into force on July 26, 1998.

- So foreigners can acquire land in Korea as same rights and obligations with Koreans.



Question 2.

What is the definition of a foreigner in the foreigner's Land Acquisition Act ?


Answer 2.

◆ A foreigner Prescribed in the Foreigner's Land Acquisition Act is classified into two; a foreign individual and a foreign corporation.

◆ A foreign individual means who does not has a Korean nationality.

- Consequently, the Foreigner's Land Acquisition Act is not applied to overseas Koreans who have a Korean nationality and a permanent residence in the foreign country

◆ Foreign corporations means that

- a corporation established according to the foreign law.

- a foreign corporation established according to the Korean law which has more than half of capital stock or voting rights.



Question 3.

Can a foreigner acquire land within Korean territory without any restriction according to amended "Foreigner's Land Acquisition Act"?


Answer 3.

◆ The main purpose of the amended Foreigner's Land Acquisition Act is to abrogate the discriminative requirements of the former Foreigner's Land Acquisition Act which limitedly allowed foreigners to acquire land unlike Koreans.

- As a result, foreigners are allowed to acquire land in Korean territory, as the same rights and obligations with Koreans.

- So, when foreigner's acquire land, they are not exempted from the restrictions on land and taxes which are applied to Koreans.



Question 4.

What are the restrictions on land acquisition, use, and development in Korean territory ?


Answer 4.

◆ Restrictions related to land within Korean territory are largely classified into three : restrictions on land acquisition, use, and development.

◆ First, restrictions on land acquisition are;

- foreigners are not allowed to hold over 3ha farmland according to the "Farmland Act"

- ln addition, they must obtain a certificate of farmland acquisition.

◆ Second, restrictions on land use are;

- The national land is classified into five use zones according to the "National Land Use Plan" , and each use zone is subject to restriction on a fixed action

- Land designated as an use zone is subject to restriction depending on individual action, according to the "Town Planning Act" and the "Architect Act".

◆ Finally, restrictions on land development are

- When 28 projects, such as; new town development, tourist resort development projects, and etc., are carried out, development charges equivalent to 50% of development benefit are assessed according to the "Development Gains Recapturing Act"

- When farmland or mountainous zone is developed for the another purposes changes on changing use are assessed according to the "Farmland Act" or the "Forest Law"

◆ However, these restrictions will be relaxed or abrogated by the "Real Estate-invigorating Policy" which is promoted by the government.

- The national land use plan will change from restriction-centered one to flexible land supply-centered one.

- All development charges will be exempted until December 1999. Development charges rate will be dramatically cut down from 50% to 25% after the year 2000.

◆ In addition, restrictions according to the Farmland Act or the Forest Law will be drastically relaxed by deliberation with the government agencies such as the "Restriction Reformation Commission" and etc

◆ Consequently, restrictions related to land within Korean territory were drastically relaxed at the second half of year 1998.

Landlovers Development & Consulting Co.

[Tiberious aka Sparkles]

In response to the OP, Wifey and I dropped 10 million won on an apartment. The lease is for two years. We're also paying 450,000 won per month. It's pretty decent (doesn't compare to my 80 pyeong penthouse apt. in Apkujeong, though ), but I'm itching for the lease to expire so that we can find something bigger and more modern (that's my biggest complaint with the place; it's too drab. When we were originally looking, there was a very modern place -- same size, same key-deposit, and only 50,000 won extra per month for rent -- that we turned down because the place we're at now is nestled right next to a mountain. The moral: mountains aren't really all that special). But I digress...

From what I've heard, most building owners prefer the weolsae method these days.

And definitely, DEFINITELY have a Korean friend/lover look deeply into the building owner's AND the real estate agency's histories.

Sparkles*_*

[saint_moi]

Well, I'm doing the Cheonsae option. Im forking 20mil for a modern, but measly 10pyeong, apt close to my school downtown.
The difference is i don't pay squat after that cept for utilities (water/elec/cable fee).

Schwa and Sparkles u both talked about paying rent thereafter... I'm not payin any rent after that for a year. Maybe things work differently in smaller cities. Maybe.

[schwa]

I expect the system is much the same throughout the country, but of course space is cheaper in smaller cities. I had to househunt with a work-given budget of 25 mil cheonsae or 300k a month & I couldnt find a cheonsae place I liked. But 10 mil down (of mine) got me a pretty sweet 30-pyeong space & the job picks up the other 300k/mo. Whatever works. Enjoy your new pad.

[Tiberious aka Sparkles]

[coolsage]