From left, American actor Greg Kinnear, Mexican actress Ana Claudia Talacon, American actor Ethan Hawke, Colombian actress Catalina Sandino Moreno, American director Richard Linklater and American actor Wilmer Valderamma arrive for the screening of the film "Fast Food Nation," at the 59th International film festival in Cannes, southern France, on Friday, May 19, 2006. (AP Photo/Laurent Emmanuel)



Overseas Investment to be Permitted

It is announced that Koreans, including domestic companies, can purchase overseas real estate only for investment purposes from May 22. Until now, they could purchase real estate only for the purpose of residence. The government lifted such a restriction yesterday, allowing Koreans to purchase any sort of real estate for investment under new measures to liberalize foreign exchange. Therefore, individuals may buy overseas investment property worth up to $1 million. The government will lift the ceiling completely from 2008 or 2009.

In order to make Korean currency internalized in the world market, the government will also lift the limitation of import and export of won from 2008. The Finance Ministry will complete its foreign exchange liberalization plan by 2009, two years earlier than originally scheduled. It said that the government will execute the foreign exchange liberalization by phases from May 22.

According to the plan, individuals can purchase overseas real estate freely within the limitation of 10 billion won, but they have to submit evidence documents for proof every two years. In the event they sell their properties, they also return their overseas capital used for overseas property.

Kwon Tae-gyun, head of the ministry's international Finance Bureau said on an MBC radio show that it will allow Koreans to invest in overseas real estate, it will liberalize all foreign transactions related to financial institutions by 2009, and in order to establish the infrastructure for becoming Northeast Asia's financial hub, we should guarantee free transaction of capital. However, one caution is that domestic investors should be counseled ahead of overseas investments since, like the domestic market, overseas real estate markets are also subject to bubbles.
/ 입력시간: 2006. 05.20. 09:01