Analysis of Bank of Korea data by People Power Party lawmaker Kim Eun-hye
Remittances by domestic residents for overseas real estate purchases
Full-year 2025 total likely to be surpassed
The amount South Korean residents have sent abroad to buy overseas real estate has approached 320 billion won so far this year. Analysts say investors are shifting to overseas properties to avoid strict domestic regulations on multi-home ownership and non-primary residences — overseas properties are not counted toward the number of homes a person holds. Demand for Japanese real estate has been particularly notable, driven by a weak yen and expectations of an economic recovery there.
According to Bank of Korea data obtained by People Power Party lawmaker Kim Eun-hye of the National Assembly's Land and Transport Committee on Friday, South Korean residents remitted $210.3 million (about 319.1 billion won) overseas for real estate purchases in the first four months of this year. That is roughly 35 percent of the full-year 2025 total of $590.5 million, which was the highest in the past five years. At the current pace, this year's overseas real estate remittances are likely to surpass last year's total.
Looking at the five-year trend, remittances for overseas real estate purchases fell from $589 million (903.8 billion won) in 2021 to $540.9 million (830 billion won) in 2022, then to $366.8 million (562.9 billion won) in 2023. They then rebounded to $419.5 million (643.7 billion won) in 2024 before jumping to $590.5 million (906.1 billion won) in 2025.
Industry observers attribute the rise in overseas real estate investment to stringent domestic regulations and demand for asset diversification. Because overseas properties are not counted toward the number of homes owned, they carry a relatively lighter tax burden. While the National Tax Service has tightened reporting requirements for overseas trusts to combat offshore tax evasion, investors can still sidestep the lending restrictions and tax levies that apply to purchasing multiple homes in South Korea.
Breaking down remittances for overseas real estate purchases through April by destination, the United States topped the list at $112 million (171.9 billion won), followed by Japan at $36 million (55.2 billion won), other countries at $31.3 million (48 billion won), the United Arab Emirates at $13.9 million (21.3 billion won), Australia at $7.6 million (11.7 billion won), Malaysia at $2.5 million (3.8 billion won) and Canada at $2.2 million (3.4 billion won).
Among these destinations, Japan has seen a particularly sharp increase this year. Remittances to Japan in the first four months of this year already approached 46.3 percent of the full-year 2025 total of $77.7 million.
A buyer identified only as A, who purchased a tower apartment in Osaka worth 150 million yen (about $937,000) earlier this year, said the decision was driven by a desire to diversify beyond won-denominated assets. "Japan is geographically close and the yen is weak," A said.
A added that Japan imposes relatively few restrictions on foreign investors. "The more stable political landscape there compared to South Korea was also a reason to invest," A said.
As more South Koreans look abroad to sidestep domestic real estate regulations, overseas markets are actively courting Korean buyers. Licensed agents affiliated with the Seoul Global Real Estate Association are set to conduct a five-night, six-day "Southeast Asia real estate tour" from June 17 to June 22. The trip comes about six months after a Malaysian real estate firm invited South Korean licensed agents to Kuala Lumpur, and is expected to be marketed in connection with demand for enrollment at international schools.
Overseas real estate is not, however, free of tax obligations. Capital gains on overseas properties are subject to taxation in South Korea. Under bilateral tax treaties, the amount paid in taxes locally can be deducted, with any remaining liability settled in South Korea.
Woo Byung-tak, a senior adviser at Shinhan Bank's Premier Pathfinder unit, said investors should be aware of the complexities involved. "If you have paid capital gains tax overseas, you can claim a deduction in South Korea, but you still need to account for differences in each country's tax system and any additional tax burden arising from exchange rate fluctuations," he said.
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