SOUTH KOREA Law and Practice Contributed by: Junghwan Lee, Dong Seok Woo, Jun Woo Cho and Jee In Kim, Lee & Ko
Lee & Ko Hanjin Building 63 Namdaemun-ro Jung-gu Seoul 04532 Korea
Tel: +82 2 772 4937 Fax: +82 2 772 4001 Email: junghwan.lee@leeko.com Web: www.leeko.com
1. General 1.1 Main Sources of Law
provide detailed rules for the implementation of devel - opment projects and local tax matters. 1.2 Main Market Trends and Deals Main Market Trends and Deals Over the past 12 months, the South Korean com - mercial real estate market has shown a recovery in transaction activity, led by prime office assets in Seoul. Total transaction volume rebounded in 2025 to approximately KRW33–34 trillion, with capital con - centrated in high-quality, income-generating assets in core business districts where vacancy rates remained low (generally below 5%). Notable deals included the acquisition of Pangyo Tech 1 by Korea Investment Real Asset Management for approximately KRW1.98 trillion, representing the largest single-asset office transaction in 2025. As the second-largest deal, Signature Tower in Seoul’s CBD was acquired for approximately KRW1.03 trillion by KB AMC through a share deal. In addition, a notable feature of the market this year was that approximately one-third of office transactions were driven by strate - gic investors, reflecting an increase in owner-occupier acquisitions. For example, LX Group acquired the LG Gwanghwamun Building to use as its corporate head - quarters. In the logistics sector, a notable transaction included the sale of the Cheongna Logistics Center in Incheon for approximately KRW1.03 trillion, representing the largest logistics transaction in Korea to date. The logistics market also showed signs of stabilisation,
Legal Framework and Procedural Requirements The Civil Code serves as the fundamental legal frame - work governing real estate in South Korea, specifi - cally addressing property rights, ownership transfers and security interests. Specific property rights must be registered in the real estate register managed by courts under the Registration of Real Estate Act, while the Act on the Reporting of Real Estate Transactions, etc, mandates procedural compliance for real estate transactions. In addition, the Housing Lease Protec - tion Act and the Commercial Building Lease Protec - tion Act provide essential statutory safeguards for tenants that complement the general civil framework. Public Law and Development Controls The National Land Planning and Utilization Act is the primary statute governing zoning, land use classifi - cations and development permits. The Building Act establishes construction and safety standards for buildings. For urban areas, the Act on the Improve - ment of Urban Areas and Residential Environments provides the legal basis for redevelopment and recon - struction projects. Judicial Precedents and Regulatory Guidance Although Korea is a civil law jurisdiction, Supreme Court decisions provide important guidance on the interpretation of statutes in complex disputes. In addi - tion, administrative guidelines and local ordinances
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