Korean estate agent fee
What a Korean estate agent may legally charge you for a jeonse or wolse contract. The rate is a ceiling, and you pay it separately from the landlord.
₩900,000
Rate applied 0.3%
With VAT ₩990,000
Agent collects from both sides ₩1,800,000
This is a ceiling, not a price. The rate is the legal maximum and it is negotiable. You and the landlord each pay it separately
Agent fee on a jeonse contract
| Deposit | Rate | You pay at most | With VAT |
|---|---|---|---|
| ₩50,000,000 | 0.4% | ₩200,000 | ₩220,000 |
| ₩100,000,000 | 0.3% | ₩300,000 | ₩330,000 |
| ₩200,000,000 | 0.3% | ₩600,000 | ₩660,000 |
| ₩300,000,000 | 0.3% | ₩900,000 | ₩990,000 |
| ₩500,000,000 | 0.3% | ₩1,500,000 | ₩1,650,000 |
| ₩700,000,000 | 0.4% | ₩2,800,000 | ₩3,080,000 |
What one side pays, before VAT. The rate is the legal maximum — agents may charge less and often will if you ask. Note the drop at ₩100m and the jump again above ₩600m.
The rate bands for renting
| Deposit is under | Rate | Cap |
|---|---|---|
| ₩50,000,000 | 0.5% | ₩200,000 |
| ₩100,000,000 | 0.4% | ₩300,000 |
| ₩600,000,000 | 0.3% | None |
| ₩1,200,000,000 | 0.4% | None |
| ₩1,500,000,000 | 0.5% | None |
| ₩∞ | 0.6% | None |
Set by ordinance for housing leases. The rate does not climb steadily — it falls to 0.3% in the middle band and rises again above ₩600m, so a slightly larger deposit can cost more than proportionally.
Jeonse and wolse, and why the fee differs
Jeonse is a deposit with no monthly rent. You hand the landlord a very large sum — often half the value of the flat — live there rent-free, and get the whole deposit back when you leave. The landlord earns from investing it.
Wolse is a small deposit plus monthly rent, which is what renting looks like in most countries.
The fee is charged on a deal amount, and for wolse that has to be invented from two numbers. The rule is deposit plus 100 times the monthly rent. So ₩10,000,000 with ₩500,000 a month counts as a deal of ₩60,000,000 and the fee is ₩240,000.
There is one twist: if that sum comes to less than ₩50,000,000, the multiplier drops to 70 instead. It keeps the fee on cheap rooms from being disproportionate.
You are not paying half
The single most common surprise: the tenant and the landlord each pay the full fee. It is not split between you.
On a ₩300,000,000 jeonse, you pay up to ₩900,000 and the landlord pays the same, so the agent receives ₩1,800,000 for one contract.
VAT is on top if the agency is a standard taxpayer — 10% more. Small-scale agencies charge less or none, so ask which they are before signing.
And the published rate is a maximum, not a price list. Negotiating it down is normal and not rude, particularly on a large deposit where the percentage produces a big number.
The band structure is strange on purpose
Rates usually rise with price. Here they fall and then rise again. Under ₩50,000,000 it is 0.5%, then 0.4%, then it drops to 0.3% for the whole range up to ₩600,000,000 — and climbs back to 0.4%, 0.5%, 0.6% above that.
The dip covers ordinary homes, so most contracts land in the cheapest band. The two lowest bands have cash caps as well — ₩200,000 and ₩300,000 — so the percentage cannot run away on a small deposit.
One consequence worth knowing: crossing ₩600,000,000 costs more than the extra won. The whole amount moves to the higher rate, not just the part above the line.
Officetels are charged differently again — a flat rate rather than bands, because they are not classed as housing.
Before you sign
Ask for the agent’s registration. Only a licensed agent may charge this fee, and the licence number belongs on the contract.
Get the fee in writing before viewing. Agreeing the number afterwards is where disputes start.
A jeonse deposit is a large unsecured sum. Registering your lease and moving your residence registration protects your claim on it — that is a separate matter from the fee, and worth reading about properly before you transfer the money.
Working out how big the place actually is? See pyeong and square meters. Buying rather than renting brings acquisition tax too.
Common questions
- How much is the estate agent fee in Korea?
- For a housing lease it runs from 0.3% to 0.6% of the deposit depending on the band. A ₩300,000,000 jeonse costs up to ₩900,000 per side, before VAT.
- Do the tenant and landlord split the fee?
- No. Each pays the full amount separately, so the agent receives about ₩1,800,000 on a ₩300,000,000 jeonse. This surprises most people renting in Korea for the first time.
- How is the fee worked out for wolse?
- The deposit plus 100 times the monthly rent becomes the deal amount, and the rate applies to that. If the result is under ₩50,000,000, the multiplier is 70 instead.
- Can I negotiate the agent fee?
- Yes. The published rate is a legal ceiling, not a fixed price, and agents frequently agree to less — especially on large deposits. Settle the number in writing before viewing properties.
- What is jeonse?
- A Korean lease with a very large refundable deposit and no monthly rent. The landlord invests the deposit instead of collecting rent, and returns it in full at the end of the contract.
- Is VAT included in the fee?
- No, VAT of 10% is added on top when the agency is a standard taxpayer. Smaller agencies may charge a reduced rate or none, so ask which applies.