Downtown LA’s Fashion District is not a new market for Korean investors. It is one where Korean-American entrepreneurship helped build the district itself. The fuller history of that connection is in our Fashion District overview; this piece covers what is specifically different for Korean nationals and Korean-American buyers looking at DTLA commercial property.
EB-5: real estate as a path to permanent residency
The EB-5 Immigrant Investor Program lets a foreign national obtain US permanent residency by investing in a new commercial enterprise that creates at least ten full-time US jobs. Commercial real estate — hotels, mixed-use retail, larger redevelopment projects — is one of the most common qualifying categories.
- $800,000 minimum for a project in a Targeted Employment Area.
- $1,050,000 minimum for a standard project.
- Three to five years of total processing time, typically.
Investment minimums are expected to rise after January 2027, which makes the current window relevant if EB-5 is part of your planning.
Sources: EB5BRICS and Colombo Hurd Law, on EB-5 minimums and the South Korean investor path. This is general information, not immigration advice — EB-5 qualification and project selection should go through a qualified immigration attorney and an EB-5 regional centre or project sponsor.
Tax treaty considerations
Every foreign seller of US real property is subject to FIRPTA: the buyer generally withholds 15% of the gross sales price at closing. The US–Korea tax treaty may reduce that withholding in certain circumstances, but the reduction has to be requested and substantiated with the IRS in advance, on Form 8288-B. It is not automatic.
Whether a reduced rate reaches your specific transaction depends on how you hold the property and your residency status under the treaty. That is a question for your CPA, not a general rule anyone can state for you. The base rules every foreign buyer should know are set out in our foreign investor’s guide.
Financing and ownership structure
Financing terms for Korean nationals follow the same pattern as other foreign-national buyers: larger down payments than a US-resident borrower would face, reserves held in a US bank, and income or asset documentation from Korea. Most buyers hold the property through a US LLC rather than personally, and many use an ITIN to file the US returns required once the property generates rental income.
None of this is unusual. It is the standard mechanics of cross-border ownership, and a firm that works in this market regularly should be able to walk you through it without surprises at closing.
A firm that works where you are looking
K2 Investment, Inc. is headquartered in the Fashion District, at 530 E 8th Street — inside the community this guide is written for, not observing it from outside. Contact us to talk through a specific building or an investment plan.
This article is general information, not tax, legal or immigration advice. Talk to a qualified CPA and attorney about your own situation.