Discover the two main types of rental contracts in Korea: Jeonse (key money deposit), where you pay a large deposit with no monthly rent, and the Weolse or monthly rent system with a security deposit. Each system has its pros and cons.
Rental Contracts
1️⃣ Jeonse (key money deposit system)
In this system, the tenant pays a large deposit, known as “key money,” without paying rent during the lease period, typically 1 to 2 years.
This deposit usually amounts to 50-90% of the property’s value.
The landlord holds this amount and returns it in full at the end of the lease, provided there is no damage to the property.
During the lease, the tenant does not make any additional payments but is responsible for the interior maintenance of the home.
2️⃣ Weolse or Monthly Rent System
In this system, the tenant pays a security deposit upon signing the contract, typically 10-20% of the monthly rent. The tenant then pays rent monthly.
The total amount of the security deposit varies depending on the type of property and the rent amount.
If the tenant wishes to terminate the lease early, they usually need the landlord’s approval.
At the end of the lease, the landlord must return the full deposit, provided there is no damage to the property.
🔑 Which system suits you best?
Learn about the types of housing in South Korea here!
