What is a housing acquisition funding plan?
A housing acquisition funding plan (jageum-jodal-gyehoekseo, 자금조달계획서) is a statutory disclosure form that real estate buyers in South Korea must submit alongside the standard real estate transaction report. It breaks down every source of money used to purchase a home, including personal savings, loans, gifts, proceeds from selling other assets, and any other funds. The government introduced the form to curb speculative buying, expose undeclared wealth transfers between family members, and verify that purchase funds are consistent with the buyer’s known income and assets.
The legal basis is the Act on Report on Real Estate Transactions, Article 3, and its Enforcement Decree, Article 3. The form must be filed within 30 days of signing the purchase contract, together with the transaction report itself. Failure to file, filing inaccurately, or failing to attach supporting evidence in areas that require it can result in penalties and may trigger a full tax audit.
Korea-based planning tool — 2026 rules
This calculator is based on Korean regulations in force as of 2026-07-01, including the Act on Report on Real Estate Transactions, the Inheritance and Gift Tax Act, and the National Tax Service administrative guidance on gift-presumption exemptions. Results are planning estimates only and do not constitute official assessments, legal advice, or tax advice. Regulatory designations (especially regulated-area boundaries) change frequently by government notice. Verify the current designation of your target property with the Ministry of Land, Infrastructure and Transport before relying on any calculation.
- Filing deadline: within 30 days of signing the purchase contract.
- Regulated-area boundaries as of 2026-07-01: all 25 Seoul districts plus 15 Gyeonggi areas.
- Corporations must always file regardless of price or location.
- Inaccurate filings can trigger gift-tax audits and penalties.
Who must file the form?
Filing requirements depend on where the property is located and how much it costs. There are four separate triggers, and satisfying any one of them means you must file.
Regulated areas — any price
If the property sits inside a speculation-overheated district (투기과열지구) or an adjustment target area (조정대상지역), the funding plan is required regardless of the purchase price. Even a small studio apartment triggers the obligation. As of 2026-07-01, following the October 2025 designation measures, all 25 districts of Seoul and 15 cities and counties in Gyeonggi Province carry at least one of these designations. Designations change by government notice, so always confirm the status of the specific parcel before signing.
Additionally, in a speculation-overheated district:
You must attach objective supporting evidence — for example, a bank balance certificate, income certificate, or debt confirmation — to prove each funding source. The form alone is not enough; the evidence must be physically submitted with the transaction report.
Non-regulated areas — KRW 600 million or more
Outside a regulated area, the funding plan is required when the purchase price reaches KRW 600 million (approximately USD 440,000 at mid-2026 rates). Transactions below that threshold in a non-regulated area do not require the form, though you may still face gift-presumption scrutiny if the funds come from relatives.
Corporate buyers — always required
A corporation (법인) must file the funding plan for every house purchase, irrespective of the price or whether the property is in a regulated area. This rule reflects the government’s longstanding concern about corporate entities being used as vehicles for housing speculation.
Presale and occupancy rights
The filing obligation covers not only completed houses but also presale rights (분양권) and occupancy rights (입주권). If you are buying or reselling any of these instruments in a regulated area, you must file the funding plan as though it were a completed home purchase.
Fund composition and self-funding ratio
The form requires you to categorise every won of the purchase price into one of the following funding sources: personal savings or deposits, financial institution loans, funds received from relatives or others, proceeds from selling existing real estate, proceeds from settling a lease (jeonse) deposit, and other miscellaneous sources. Most calculators will show you what percentage of the total each source represents and whether your self-funding ratio looks plausible relative to your age and income.
A low self-funding ratio is not automatically a problem, but it invites scrutiny. If a 28-year-old buyer claims to have funded 70% of a KRW 900 million apartment from personal savings, the tax authority will likely want to see bank statements going back several years. Conversely, a buyer who has been in the workforce for 20 years and shows a conservative loan-to-price ratio will typically face little additional questioning.
The source-of-funds 80% rule
What the rule says
Under the Inheritance and Gift Tax Act, Article 45, and its Enforcement Decree, Article 34, the National Tax Service (NTS) applies a “deemed gift” presumption whenever funds used to acquire an asset cannot be explained by verifiable sources. The rule works as follows: if the unverifiable portion is below the lesser of 20% of the acquisition price and KRW 200 million, the entire acquisition price is treated as properly proven and no gift is presumed.
Formula
Allowable unproven amount = min(acquisition price × 20%, KRW 200 million)
Required proof = acquisition price − allowable unproven amount
Examples
- KRW 500M home: prove at least KRW 400M (500M − 100M). Allowance is 100M (= 500M × 20%).
- KRW 900M home: prove at least KRW 720M (900M − 180M). Allowance is 180M (= 900M × 20%).
- KRW 1.2B home: prove at least KRW 1.0B (1.2B − 200M). Allowance is capped at KRW 200M.
- KRW 2.0B home: prove at least KRW 1.8B (2.0B − 200M). Cap still applies.
In practical terms, the 80% rule means that for any purchase price up to KRW 1 billion, you need to document approximately 80% of the price through verifiable means such as bank statements, salary slips, loan agreements, or proceeds from prior property sales. Above KRW 1 billion the absolute KRW 200 million cap applies, so the proportion you must document actually rises above 80%.
If the unverifiable portion exceeds the allowance, the NTS will presume the excess was received as a gift and assess gift tax accordingly. The burden of proof falls on the taxpayer, not the tax authority.
Age-based gift-presumption exemption
The NTS applies an administrative guideline (Art. 31 of the relevant NTS rules) that recognises age-linked earning capacity when deciding whether to presume a gift. The thresholds below represent the total cumulative amount a person in that age bracket might plausibly have accumulated and are used to determine how much scrutiny applies. Note that these are not absolute safe harbours — if a gift is clearly established by other evidence, the exemption does not protect it.
Under 30
KRW 50M
Housing (total cap KRW 80M)
Age 30 to 39
KRW 150M
Housing (total cap KRW 200M)
Age 40 and over
KRW 300M
Housing (total cap KRW 400M)
These figures represent the amount a person of that age is considered able to have accumulated through legitimate income. If your declared self-funding exceeds the threshold for your age, the NTS is likely to request supporting documents to explain the source. The thresholds are also used in combination with the 80% rule: even if the unproven amount falls within the 20%/KRW 200 million allowance, the NTS may still ask questions if a young buyer claims an unusually large amount of personal savings.
Gift tax when family money is involved
A common scenario is a parent helping an adult child purchase a home. Korean gift tax applies to the received amount, but a 10-year deduction is available before the tax is calculated. The key deduction thresholds are:
Gift deductions (per 10-year cumulative period)
- Spouse: KRW 600 million
- Lineal ascendant to adult child (age 19+): KRW 50 million
- Lineal ascendant to minor child (under 19): KRW 20 million
- Other relatives: KRW 10 million
Gift tax rates
- Up to KRW 100M: 10%
- KRW 100M to 500M: 20% (marginal)
- KRW 500M to 1B: 30% (marginal)
- KRW 1B to 3B: 40% (marginal)
- Over KRW 3B: 50% (marginal)
The deduction is cumulative over a rolling 10-year period. If a parent gave the child KRW 30 million 6 years ago, the remaining deduction available now is KRW 20 million, not the full KRW 50 million. Gifts that are not filed are subject to additional penalties on top of the base gift tax, so it is important to file a gift tax return within 3 months of the gift date even when the amount is below the deduction threshold.
Frequently asked questions
Do I need to file if I am buying outside Seoul?
It depends on the designation, not the city. After the October 2025 measures, 15 Gyeonggi cities and counties are also regulated. If your property is in a non-designated area anywhere in Korea, you only file when the price is KRW 600 million or more. Check the Ministry of Land’s current list for your specific address.
What happens if I leave a funding source blank?
A blank or inconsistent form will typically trigger a follow-up inquiry from the NTS. If the unaccounted amount exceeds the allowable unproven threshold, the tax authority will presume it was a gift and assess gift tax plus a 20% unfiled penalty. Willful false reporting can escalate to criminal referral in severe cases.
Can I include a jeonse (전세) deposit refund as a funding source?
Yes. The recovery of a jeonse deposit — either your own deposit from a prior rental or a tenant’s deposit that reduces your net outlay — is a recognised and commonly used funding source. You should document it with the lease contract and the bank transfer record showing the refund.
Does my spouse’s income count as my own funds?
Spouses can pool income and savings, and joint income is recognised as a legitimate source. However, if the property is in one spouse’s name only, a very large contribution from the other spouse may be characterised as a gift between spouses, which — while benefiting from the KRW 600 million deduction — still needs to be documented and filed if it exceeds that threshold.
Is a loan from a parent considered a gift?
Not automatically, but the NTS scrutinises family loans closely. To treat the money as a genuine loan rather than a gift, you need a written loan agreement with a market-rate interest (currently around 4.6% per annum for the NTS-recognised rate), a repayment schedule, and actual evidence of interest payments. A zero-interest or zero-repayment arrangement is very likely to be reclassified as a gift.
Practical tips and cautions
- Start gathering documents before signing the contract. The 30-day filing window runs from the contract date, not the closing date, so there is little time to assemble bank statements, salary certificates, and loan pre-approvals after signing.
- Keep a running record of savings over several years. The NTS can look back at your bank history to verify that savings are genuine accumulation rather than a last-minute transfer from a relative.
- File gift tax returns proactively. If a family member is contributing, file the gift tax return within 3 months of the transfer — even when the amount is under the deduction limit. A filed return establishes a clean paper trail and avoids the unfiled-gift penalty later.
- Verify regulated-area status on the day of contract. Designations can change between the day you find a property and the day you sign. Always print or screenshot the official MOLIT designation page for your records.
- For a speculation-overheated district, prepare hard-copy evidence in advance.The attachment requirement is strict: soft claims on the form without accompanying certificates are rejected and can result in penalties.
Plan your acquisition funding now
Use the calculator above to map out your funding sources, check whether your self-funding ratio is defensible for your age, and estimate any gift tax exposure before you sign the contract.