The Korean Supreme Court, in Decision 2022Da233164 (February 13, 2025), significantly limited the extent to which provisions in Korean trust agreements that were attached to trust registrations may be enforced against third parties. This decision clarifies a long-standing uncertainty in Korean trust law and Korean real estate law. This decision has material implications for trustees, landlords, tenants, and investors dealing with trust-held real property in Korea. Under the Korean Real Estate Registration Act, a trust registration must include a trust register, and in practice, the trust agreement
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IPG Legal Expert Opinions on Korean Law for Foreign Courts and Law Firms
As complex cross-border litigation, arbitration, and international transactions continue to increase in Korea, foreign courts and overseas counsel are frequently required to apply or assess Korean law and the Korean legal system. In such cases, accurate and nuanced interpretation of Korean statutes, judicial precedent, and regulatory practice is essential. IPG Legal regularly works with foreign lawyers and courts to provide expert opinions on matters governed by Korean law. We often appear in court and provide legal opinions worldwide. The Role of Korean Law Expert Opinions in Cross-Border
Continue readingHow Foreigners Can Purchase Real Estate under Korea’s Land Transaction Permission System
Over the past few years, Korean real estate prices have surged, particularly in Seoul and the surrounding metropolitan areas. In response, the new administration has significantly expanded the scope of the Korean Land Transaction Permission System. The System is a regulatory regime that was previously limited to certain parts of the Gangnam area and now covers the entire Seoul region and selected areas of the capital suburbs. Under the Land Transaction Permission System of Korea, anyone, including foreigners and foreign-invested entities, wishing to purchase land or real
Continue readingReal Estate Litigation in Korea: Navigating Korean Property Disputes in a Challenging Korean Property Market
Real estate and property disputes in Korea are on the rise. Korea’s rapid urban development, the growth of mixed-use projects, a complex lease-deposit culture, and the presence of many fraudulent actors have made real estate litigation one of the most active areas of Korean civil and criminal law practice. What once involved routine ownership or tenancy issues now regularly includes high-value civil compensation claims, construction-defect suits, and administrative appeals. IPG Legal’s real estate and dispute resolution team has represented both Korean and foreign parties in property cases
Continue readingLegal Restrictions on Foreigners Purchasing Residential Real Estate in Korea
Effective August 21, 2025, the South Korean government introduced a new permit-based regime restricting residential property purchases by foreigners in key regions, including all of Seoul, extensive parts of Gyeonggi Province, and specified districts in Incheon. IPG Legal will update the reader when more information becomes available. For additional articles on Korean Real Estate Law, please see: IPG Legal’s Real Estate Law Archive. IPG Legal is engaged by expatriates, family offices, and foreign capital-invested companies on matters related to financing and the acquisition of residential and commercial
Continue readingKorean Jeonse Lease Fraud: 7-Year Sentence Upheld by Korean Supreme Court
The Korean Supreme Court upheld a 7-year prison sentence for the “Construction King” for a Jeonse Lease Fraud. The Jeonse Deposit System is a Korean rental system in which a tenant places a deposit that is sometimes 50% or more of the value of the property down on the property for the benefit of utilization of the property for a set lease term. For example, a tenant may pay a deposit of US$ 500,000 for a property with a US$ 1,000,000 value. No rental payments are owed.
Continue readingCancellation of Korean Apartment Sales Contracts under Korean Law
In the recent past, Korean real estate developers offered potential buyers of apartment complexes that were not yet built in Korea favorable terms, including, temporary interest-free loans. However, with the economic downturn, rising vacancies, construction delays, construction defects, construction variances, and increasing interest rates many buyers are attempting to cancel apartment sales contracts in Korea through lawsuits at Korean courts. Many buyers are facing severe difficulties in paying mortgages and see some apartments as worth substantially less than the initial purchase price. Cancellation of these sales agreements
Continue readingLiability of Korean Real Estate Agents for Acts & Omissions
Korean Lessors’ rights to compensation from negligent and dishonest Korean real estate agents are expanding in South Korea based on recent holdings by district and appeals courts in Korea. Recent holdings at the Seoul Central District Court and an appellate court held a Korean real estate brokerage firm and the representative of the Korean real estate brokerage firm jointly liable for damages caused by the gross negligence of the broker working for a real estate agent. See: Korean Real Estate Acquisition Taxes for an article on taxes
Continue readingKorean Supreme Court Rules on Foreign Embassy Land Occupation: Denies Removal and Return Claims but Affirms Right to Compensation
In a recent ruling, the Korean Supreme Court clarified the legal boundaries surrounding foreign diplomatic missions occupying private land in Korea. While it confirmed that the removal of such missions or the return of occupied land cannot be demanded, it stated that compensation for land use may be claimed through litigation. In the case at hand, a Korean company sued Mongolia for the removal of buildings located on land next to the Mongolian Embassy in Yongsan-gu, Seoul. The plaintiff had purchased land in 2015, but discovered that
Continue readingKorea May Amend its Inheritance Tax System in 2025
Korea has one of the highest effective inheritance tax rates in the world and one of the most complicated inheritance processes in the world. The present Korean Administration, realizing this reality, is attempting to amend Korean law to place the Korean Inheritance System more in line with international norms and to lower the effective tax burden on inheritors. IPG Legal is looking forward to a comprehensive amendment, also, to the laws related to the Korean legal reserve of inheritance based on recent Korean court precedent. One peculiar
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