- Jeonse: pay a large deposit, no monthly rent, get the deposit back when you leave.
- Wolse: a smaller deposit plus monthly rent. Semi-jeonse is in between.
- When converting during a lease, the yearly rate is capped at 5.0% (base rate + 2%p).
- The big risk is not getting your deposit back — check the registry and protect your claim.
Three kinds of lease
| Type | Deposit | Monthly rent |
|---|---|---|
| Jeonse 전세 | Very large (often 50–80% of the home's value) | None |
| Semi-jeonse 반전세 | Large | Some |
| Wolse 월세 | Smaller (often ₩5–50 million) | Yes |
Landlords like jeonse because they can use or invest the deposit. Tenants like it because there is no rent — but you need a lot of cash or a jeonse loan, and your money is at risk if the landlord cannot return it.
Converting a deposit into rent
The conversion rate (전월세 전환율) turns part of a deposit into yearly rent. With a 5% rate, converting ₩200,000,000 of deposit gives ₩10,000,000 a year, or about ₩833,333 a month.
If the conversion happens during your lease or at renewal, Korean law caps the rate at the lower of 10% or the Bank of Korea base rate + 2 percentage points. With the base rate at 3.00% (2026년 10월 22일), the cap is 5.0%. New leases are priced by the market and the cap does not apply.
Jeonse ↔ Wolse Calculator →Convert a deposit to monthly rent and check the legal capSafety checklist for tenants
- Check the property registry (등기부등본) before signing. Confirm the owner's name and look for mortgages (근저당). If existing loans plus your deposit come close to the home's value, walk away.
- Use a licensed real-estate agent and sign the contract with the actual owner (or check their power of attorney).
- Report the lease within 30 days if the deposit is over ₩60 million or rent over ₩300,000 — this also gives you a fixed date (확정일자), which sets your priority to be repaid.
- Register your address on move-in day. For foreigners, the residence report to immigration (체류지 변경신고, within 15 days of moving) counts as the move-in registration that protects you under the lease law. Doing it on the day you move in is safest.
- Consider jeonse deposit insurance (from HUG and others). Foreign residents with an alien registration card can generally apply, but check the conditions first.
Jeonse or wolse?
Compare the conversion rate with your loan rate. If you can borrow for jeonse at 4% while the landlord asks 5% for converting to rent, borrowing is cheaper each month. But jeonse ties up a large sum and carries deposit risk, so many newcomers start with wolse.
FAQ
Can foreigners rent with jeonse?
Yes. Foreign residents can sign jeonse and wolse leases. Banks may limit jeonse loans for some visa types, so check financing before you sign.
What is 'kkangtong jeonse'?
It means 'empty-can jeonse': a home whose loans plus deposits are close to or more than its market value. If the price falls, there may not be enough to repay your deposit. Always check the registry.
How much is the agent's fee?
Commission is capped by law and depends on the deposit size. Ask the agent for the exact amount and rate before signing.
Sources: Korea housing guide for foreigners (Seoul Start) · Residence report and lease protection (Asia Economy)