Jin & Kim, PLC | Legal Blog

Short AnswerA Korean real estate sale dispute may give rise to different remedies depending on whether the buyer seeks the property itself, wants to exit the transaction, or primarily seeks repayment or damages.Potential remedies include a court order requiring ownership-transfer registration, termination of the agreement for breach, restitution of payments, damages, a provisional disposition pr..

Short AnswerSometimes. Under Article 565 of the Korean Civil Act, a buyer may generally terminate a real estate purchase agreement by expressly giving up the contract deposit, while a seller may generally terminate by offering to return twice the amount of the contract deposit received.This deposit-based termination mechanism is generally available only if the parties have not agreed otherwise a..

Short AnswerIf a seller refuses to complete a Korean real estate sale after signing a binding purchase agreement, the buyer may have several legal remedies depending on the contract and the stage of the transaction.These may include seeking registration of transfer of title, terminating the agreement for breach, recovering amounts already paid, and claiming damages.If there is a risk that the se..

Short AnswerBefore signing a real estate purchase agreement in Korea, a foreign buyer should review more than the purchase price and payment schedule.The buyer should verify the seller’s ownership and authority, mortgages and other encumbrances, trust arrangements, existing tenants and occupants, deposit and termination provisions, closing conditions, vacant possession, and foreign-buyer reporti..

Short AnswerYes. A foreign company can generally acquire and own real estate in Korea, either directly, through a Korean branch, or through a Korean subsidiary.A Korean subsidiary is not automatically required simply because the purchaser is a foreign company.However, the appropriate structure and procedures depend on the type and location of the property, purpose of the acquisition, activities ..

Short AnswerA foreign buyer can generally use funds held overseas to purchase real estate in Korea.However, the payment structure should be confirmed before signing the purchase agreement or transferring a substantial deposit. The applicable procedure can depend on the buyer’s foreign-exchange status, source and location of the funds, payment route, Korean bank arrangements, and whether a repres..

Short AnswerYes. A non-resident foreigner can generally buy real estate in Korea without traveling to Korea.The transaction may be handled through a properly authorized representative in Korea. However, an overseas buyer should coordinate several matters in advance, including the power of attorney, authentication of overseas documents, real estate transaction reporting, foreign exchange procedur..

Short AnswerA foreign tenant in Korea may need to move out before receiving the lease deposit, especially when the tenant is leaving Korea, changing jobs, changing visa status, or moving to another city.However, moving out before receiving the deposit can be risky. In some cases, giving up possession of the property too early may weaken the tenant’s legal protection or make deposit recovery more..

Short AnswerIf a property is sold during a lease in Korea, the lease does not automatically disappear.In many cases, if the tenant has legal protection against third parties, the new owner may succeed to the landlord’s position. This means the new owner may become responsible for the lease relationship, including the obligation to return the lease deposit at the end of the lease.However, the res..

Short AnswerPotentially, yes, but recovery is not automatic.In Korea, key money is not the same as a refundable lease deposit. A tenant usually recovers key money by introducing a new tenant who is willing to pay key money when taking over the commercial space.A landlord does not usually have a general duty to “return” key money. However, if the landlord unlawfully interferes with the tenant’s l..