Real Estate Development Business Registration in Korea

Who must register a real estate development business?

A person who intends to carry on, as a business and for supply to others, real estate development where the building floor area or land area is at or above the scale set by Presidential Decree must register with the si/do governor. Under the Enforcement Decree the scale is a building floor area of 3,000 m² (or 5,000 m² per year) or a land area of 5,000 m² (or 10,000 m² per year), with separate criteria for buildings combining residential and non-residential use. The State and local governments, local public enterprises, and housing construction businesses registered under the Housing Act (when carrying out housing construction) are among those excluded from registration. Construction work itself (acting as the builder) is not included in real estate development.

What are the requirements?

(1) Capital: KRW 300 million in capital for a stock company, KRW 300 million in contributions for other companies, KRW 300 million in total assets minus total liabilities for other corporations, and an appraised value of business assets of KRW 600 million or more for an individual.

(2) Facilities and personnel: secure an office and have at least two real estate development professionals working full-time. Foreign professionals must hold an intra-company transfer, corporate investment or trade management status of stay.

(3) Professional training: a person who wants to become a professional must complete pre-service training, and to continue working must complete refresher training every 3 years from the completion date.

(4) Disqualifications: minors, persons under adult or limited guardianship, undischarged bankrupts, persons within 3 years after completing a prison sentence (imprisonment without labor or heavier) for related crimes, persons within 3 years after cancellation of registration, and corporations with such an officer cannot register.

(5) Foreign corporations: a foreigner or foreign corporation whose main office is abroad must establish and register a business office under the Commercial Act.

Which documents are needed?

Attach to the real estate development business registration application: a statement of financial position and income statement (for individuals, a statement of business assets with supporting documents), a copy of the office lease (if leased), and documents proving the professionals (qualification or degree and career certificates, pre-service and refresher training certificates, and copies of employment contracts). Where foreigners or foreign corporations contribute 50% or more of the capital, proof of the contribution is required; where the applicant is a foreigner, documents showing no grounds equal or similar to the disqualifications (with consular confirmation or an apostille) are required, and some documents must be issued within 3 months before the application date. The corporate register, building register or building ledger is checked through shared administrative information.

What is the procedure?

(1) Check whether the project falls within the scale and scope → (2) secure capital and an office → (3) secure professionals and confirm their training → (4) submit the application and attachments to the entrusted registration agency → (5) review of requirements and registration by the si/do governor → (6) issue of the real estate development business registration certificate. The si/do governor may verify the registration requirements on site when needed to examine eligibility.

How long does it take?

The application form states a processing period of 20 days. Time for securing capital, preparing an office and completing professional training is separate.

Which authority handles registration?

The registering authority is the si/do governor for the location of the main business office. Receipt of applications and checking of their contents are carried out by an entrusted agency designated and announced by the Minister of Land, Infrastructure and Transport or the si/do governor (chosen from government-funded research institutes, public institutions and associations), so check the relevant public notice for the receiving office.

Why is an application returned or supplementation requested?

Typical reasons are insufficient capital or business assets, no office or fewer than two full-time professionals, incomplete professional training, or a disqualification. Carrying on a real estate development business without registration, or after registering by fraud or other improper means, can lead to imprisonment of up to 3 years or a fine of up to KRW 50 million.

What can an administrative agent help with?

YouSun Administrative Agency prepares the registration application and attachments, reviews the requirements and supports submission on your authorization. Development feasibility analysis, financing or investment advice, and handling of legal disputes over sales or contracts are not covered. Work restricted by other laws cannot be handled, and litigation or court representation is outside the scope of an administrative agent and is not offered. Whether registration is granted is decided by the competent authority.