Completion Time Frame: 1 day
Completion Costs: KW 4000
Points to Note:
The buyer obtains a certificate of its registered corporate seal issued by the commercial registry office (KW 1000). The buyer obtains its commercial registry from the commercial registry office (KW 1000). The seller obtains its commercial registry extract from the commercial registry office (KW 1000). The seller also obtains the registry extract of the concerned land and building from the commercial registry office (KW 1000). There is more than one way (in person, via website, through an unattended machine) to obtain the certificates. Most people obtain the extract through an unattended machine placed in a governmental district office or from the website of the Supreme Court.

Step 2: Obtain a copy of the Land Cadastre Certificate and the Building Management Certificate

Completion Time Frame: 1 day
Completion Costs: KW 500 1st page + KW 100 each additional page for the Land Cadastre Certificate
KW 1000 for the Building Management Certificate
(It is assumed that all certificates have 5 pages each)

Points to Note:
The seller obtains from the jurisdictional district office an official copy of the extract from the land registry, or the Land Cadastre Certificate and an official copy of the extract from the building registry or the Building Management Certificate. The actual sale price is currently used as the standard real property price. Both buyer and seller should obtain the jurisdictional district office’s stamp of the original copy of the contract executed by both parties. Prices for certificates can be found on the website www.onnara.go.kr

Step 3: Obtain a statement of taxes from the tax department of the jurisdictional district office

Completion Time Frame: 1 day
Completion Costs: no cost
Points to Note:
The parties need to obtain a statement of taxes due from the tax department of jurisdictional district office after calculating the taxes payable:
- Registration Tax: 2% of the sale price
- Education Tax: 20% of the registration tax
- Acquisition Tax: 2% of the purchase price
- Agricultural and Fisheries Tax: 10% of the acquisition tax
- Stamp Duties: KW 150,000 for KW 500 millions; KW 350,000 if above KW 1 billion

The Local Tax Law was amended effective January 5, 2005. According to the newly amended Local Tax Law, registration tax for sale and purchase of property between legal entities is 2% (1% for transfers between individuals)

Step 4: Buyer buys and affixes a National Revenue stamp

Completion Time Frame: 1-2 days
Completion Costs: Fee for real estate agent (between 0.2-0.8% of sale price) + National Revenue Stamp, according to the following schedule:

Property value (in KW) NRS
From 10 to 30 millions KW 20,000
From 30 to 50 millions KW 40,000
From 50 to 100 millions KW 70,000
From 100 to 1,000 millions KW 150,000
Above 1,000 millions KW 350,000
Points to Note:
The buyer buys and affixes a National Revenue stamp to obtain an approval for the sale agreement from the district government office.
The lawyer or real estate agent had previously prepared the sale agreement. The seller was responsible for gathering all the documents to be presented to the lawyer or real estate agent.
For small operations, the real estate agent will connect the parties and prepare the sale agreement. For more important operations such as the one analyzed here, both a lawyer and the real estate agent will be used. The real estate agent will help connect the parties and the lawyer will prepare the sale agreement.
Official rate of 0.2-0.8% of the sale price for the real estate agent. In most cases the real estate agent fee is more than the official rate.
Lawyer fees will be between KW 100,000 and KW 250,000 per hour of work. It is estimated that on average a lawyer will charge between 5 and 10 hours to prepare the sale agreement.

The documentation shall include:
For the preparation of the sale agreement, the following documentation is needed:
• The Certificate of Registration that is in the possession of the seller
• A copy of Property Register to show the owner and encumbrances (obtained in Step 1)
• Land Cadastre Certificate and Building Management Certificate (obtained in Step 2)
• Seller ID (a copy of Corporate Commercial Register)
• Official Chop/Seal of the seller company
• Property tax clearance

Step 5: Buyer pays taxes at a commercial bank and obtains receipt

Completion Time Frame: 1 day
Completion Costs: 2 % of sale price for the Acquisition tax (transfer tax)
2 % of sale price for the Registration tax
20% of registration tax (0.4% of sale price) for the Education tax
10% of Acquisition tax (0.2% of sale price) for the Agricultural and Fisheries Tax
Points to Note:
The buyer pays the Acquisition tax, Registration tax, Education tax, and the Agricultural and Fisheries Tax at a commercial bank, and the bank issues to the buyer a confirmation of tax receipt and notice.

Step 6: The buyer buys Housing Bonds

Completion Time Frame: 1-3 days
Completion Costs: 5% of sale price (not included in calculation of total cost)
Points to Note:
The buyer buys Housing Bonds and determines to sell them at a discounted price. Housing Bonds are bonds issued by the National Government to support a national program to supply housing to the poor. It is mandatory to buy these bonds in an amount equal to 5% of the actual sale price. These bonds are then usually sold in the secondary market with a discount of about 10%, but depend on market conditions.

(Step 6 is not included in the calculation of total cost.)

Step 7: Buyer applies for the registration of the titles

Completion Time Frame: 3 days
Completion Costs: KW 9,000 per real property (land + building) for court registry stamp
Points to Note:
The buyer prepares an application form and applies for the registration of the title to a competent court registry under the buyer’s name. Parties must purchase the required revenue stamp and attach it to the title transfer registration application. Land and building are registered separately.

The documentation shall include:
• Certificate of buyer’s registered corporate seal (obtained in Step 1)
• Buyer and seller’s commercial registry extracts (obtained in Step 1)
• Seller’s registry extract of the concerned land and building (obtained in Step 1)
• Land Cadastre Certificate (obtained in Step 2)
• Building Management Certificate (obtained in Step 2)
• Sale agreement with the National Revenue Stamp affixed (obtained in Step 4)
• Tax payments’ receipts (paid in Step 5)
• Receipt of purchase of Housing Bonds (bought in Step 6)