Overseas Land Buying Restrictions Eased

Koreans will be allowed to buy overseas real estate for residential purposes without any constraints within this year.

Beginning next Monday, the ceiling on overseas real estate purchases by individuals will be raised from $500,000 or 500 million won to $1 million.

Also, buyers of foreign properties can notify commercial banks handling foreign exchanges rather than the Bank of Korea.

The government and the Bank of Korea agreed on the above-mentioned measures at an emergency meeting presided over by Kwon Tae-shin, the second vice minister of Finance and Economy, in an effort to curb the sharp drop in exchange rates. The meeting was held at the Bank Building in Myeong-dong, Jung-gu in Seoul on Friday.

The vice minister said, “The recent fluctuations in exchange rates are not normal. The government is determined to exercise its authority to the fullest possible level, with an aim to minimize the impact on the foreign exchange market and the national economy.”

According to the new measures, the restrictions on investments in overseas real estate by individuals who don’t reside in those particular foreign countries will be phased out beginning next year.

The won-dollar exchange rate closed at 988.1 won, up 0.8 won from the previous day as the announcement of new government measures put a halt to the sharp fall in the exchange rate.

Hyun-Jin Park Kyung-Joon Chung witness@donga.com news91@donga.com