Why It’s So Hard for Foreigners to Rent Out Property in Korea

Korea’s rental market looks simple on paper, but foreign property owners often meet invisible barriers that affect trust, communication, and leasing outcomes. These barriers shape market behavior and explain why legally owning property does not always mean you can easily rent it out.

SOCIETY & CULTURE

6/21/20251 min read

What’s Happening
Foreign owners in Korea frequently face challenges when trying to rent out their properties, even when all legal documents are in order. Jeonse contracts rely heavily on trust, and many tenants prefer Korean landlords they can meet in person. Language gaps create concern about misunderstandings or legal disputes, and many tenants worry about how payments, taxes, and receipts will be handled. Some brokers, especially outside major cities, avoid foreign owners because the process feels slower or more complex.
What It Means
These barriers show that Korea’s housing market is shaped not only by law but also by cultural expectations. Tenants often feel safer with landlords who speak Korean, understand local rules, and live nearby—qualities foreign owners may not match. As a result, foreign property owners may see longer vacancy periods, increased reliance on managers, and reduced bargaining power. The issue reflects Korea’s relationship-driven rental culture, where trust and social familiarity can matter as much as price or location.
Watch Points

How property managers and prop-tech platforms evolve to support absentee or foreign landlords.
Whether tenant preferences shift as more foreigners own property in Korea.
Possible policy or banking changes that simplify contracts, payments, or tax reporting for non-residents.

Source
Arirang Insight. (2025). Barriers foreign owners face in the Korean rental market. Internal briefing, based on market observations and case examples.