Housing and Real Estate in Seoul

One thing to note is that in the past the way to pay for rent was by paying the full term of the contract up front. This is NOT the only option now for expats. There are real estate agents that will find accomodation for you with out having to pay the full payment up front. See this post on the forums.

Don't get sold down the garden path

Before you call any real estate agency, contact us. Our "by expats, for expats" house search services are free. We live here, we know the game and we know how to get you the extra value for your money. So don't get stung, just give us a ring and see if our words ring true. Ask your self one question: Do you or your HR people really know the market? Or the reputation of real estate agents in town?

Get more for your money ... We will refer you to Expat Friendly agents that want to get you the most for your money, not the other way around.

We live here and know exactly what you should pay. We do NOT charge for our house finding services. We simply advise you and survey the property before you sign the contract.

Remember, there is a good chance we know the old tenants. Talk to us before you take the first step. It costs nothing. EAS is not a real estate agency. We are simply an advisory service that assists expats new to Seoul or already here to find a better deal on accommodation and other services available.

For years, real estate agents and landlords in Korea have asked tenants to pay the full term of the lease up front in one payment - Times are changing. Many real estate agents and landlords are now looking at different options to attract tenants. Paying the full term on moving in or signing the lease will give you extra bargaining power, there are some great deals out there now. Contact us for advice about which real estate agents are open to reason.

Rental system in Korea

Advanced Full Payment for Entire Lease Period

This is the most common rental payment method in foreign communities in Seoul. For example, a 2-year lease agreement at $5,000/month would require $120,000 up front payment. No money is returned to the tenant at the end of the lease term.

Under the key money (chunsee) system, when you move into a house you give the owner of the property the equivalent of a year's rent in advance and pay no monthly rent. At the end of the contract period, you receive the chunsee back. In return for the use of your money to earn interest during the contract period, the owner gives you back the principal.

This system is quite risky because ownership may change during the contract period or the owner may simply decide that a foreigner is in no position to fight for the chunsee. You can reduce the risk by having your employer agree to pay the chunsee. Chunsee payments run from a minimum of 2 million won for a small studio in a less desirable part of town to 50 million won for a better apartment in one of the more prestigious neighbourhoods.

Key Money Deposit Plus Monthly Payments (wolsei in Korean)

The key money is a security deposit in the amount of 10 to 20 times the monthly payment. The larger the key money deposit, the lower the monthly payment. Usually 10% of the key money is paid when the contract is signed. And the key money balance plus one month's rental is due when the tenant moves in. The key money deposit is returned to the tenant when the lease period expires.

Walsee is a variation of chunsee. You pay a certain amount per month, plus a deposit, which you get back when you move out. The risks are the same as with chunsee. Monthly rents can run as high as 1.1 to 2.8 million won for a modest apartment.

Key Money Deposit Only (jeonsei in Korean) Not available to Expats

Key money is required in the amount of approximately 40% to 60% of the property value to be held as security for the entire duration of the lease. The entire key money amount will be returned to the tenant upon expiration of the lease. Usually 10% of the total key money is due when the contract is signed. The balance is due when the tenant moves into the premises. The tenant is responsible for all maintenance and utilities unless otherwise stated in the lease agreement. The key money will not be returned prior to the expiration of the lease agreement until a new tenant signs a new lease agreement replacing the current one.