Remittances by South Koreans to buy property abroad reached $210.3 million, or about 319 billion won, in the first four months of this year. The figure amounts to nearly 35% of the $590.5 million sent for all of 2025, the highest total in five years, and is on pace to set a record by year-end.
The United States drew the most at $112 million, or about 170 billion won, followed by Japan at $36 million, or about 54.6 billion won. Other countries accounted for $31.3 million, or about 47.5 billion won, and the United Arab Emirates for $13.9 million, or about 21 billion won.
Inquiries about direct overseas property purchases and currency-linked financial products have surged recently as the won-dollar exchange rate fell to the mid-1,300 won range, down from the 1,400 to 1,500 won range late last year, while the yen has remained weak in the 800 won range.
Bankers say a stronger won, domestic property rules and a push to diversify assets are drawing more investors to real estate in the United States, Japan, Singapore and Dubai. Interest centers on overseas property as an asset that combines a physical investment with exposure to currency moves.
Buyers who can no longer add to their domestic holdings because of taxes tied to multiple-home ownership and higher property-holding levies are turning to overseas property, which falls outside the count of homes owned in Korea.
That exclusion is one of the biggest advantages of buying abroad. Because overseas homes are not counted for tax purposes, sellers of a home in a regulated district in Korea avoid the heavier capital gains tax imposed on owners of multiple homes.
As rules on capital gains and holding taxes for owners of multiple homes tighten, the domestic housing market is shifting toward owner-occupiers. Combined with the won's appreciation, that is making overseas property a notable alternative.
Among the very wealthy, many have lived or studied abroad or have already rented out or traded property overseas. A growing number are weighing purchases with their children's studies abroad, emigration and eventual wealth transfers in mind. Families preparing to send children overseas or move abroad are also considering buying a home for their own use to avoid high local rents.
Rents have jumped in major U.S. cities such as New York, Los Angeles, San Francisco and Boston, and in core areas of Japanese cities including Tokyo and Osaka, where housing supply remains tight. Investors see buying outright, even at a financing cost, as more advantageous over the long run than renting, given rising property values and rents.
Unlike Korea's housing market, where jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) dominates and monthly rental yields are relatively low, housing markets in major overseas cities can deliver higher rental returns. That has made them an alternative for investors seeking income-producing property.
Risk management also needs review. Despite the advantages in returns and taxes, cross-border transactions require thorough legal and tax scrutiny.
Sending foreign currency abroad to buy property requires filings under the Foreign Exchange Transactions Act and other rules. Violations can bring fines and restrictions on financial transactions.
Buyers must meet local tax rules at the purchase, holding and sale stages while also satisfying Korean authorities' overseas asset reporting requirements. Those buying for investment should also prepare for the difficulty of managing a property remotely.
Professional systems for overseas property investment and wealth management — including domestic and foreign real estate advisers, accounting and tax firms and law firms — are better established than in the past, offering consulting from detailed asset valuation before a purchase to leasing and tax management afterward.
Investing safely abroad requires thorough management of risks at home and overseas before a purchase, along with a long-term approach to leasing and asset management.
Behind the continued expansion of overseas property investment are a mix of factors beyond simply chasing capital gains: domestic property rules, responses to currency volatility and the need for a home while studying or living abroad. Overseas property, which offers the prospect of capital gains and rental income along with currency gains from a stronger won, is expected to keep drawing attention as an alternative to investing in Korean real estate.
