Jeonse vs wolse (monthly rent)
| Jeonse 전세 | Wolse 월세 | Ban-jeonse 반전세 | |
|---|---|---|---|
| Deposit | Very large (50–80% of price) | Small (often 10–20× monthly rent) | Medium |
| Monthly rent | None | Yes | Lower |
| Your cost | Interest on the deposit (or lost return) | Rent | Both, partly |
| Main risk | Deposit not returned | Rent rises at renewal | Both, smaller |
Rule of thumb: if borrowing the jeonse gap costs less per month than the rent you would otherwise pay, jeonse is cheaper — the calculator above shows both numbers.
Protect the deposit — 3 steps
- Before signing: get the registry (등기부등본, iros.go.kr) and check mortgages and the owner's name.
- Moving day: report your address (전입신고) at the community center with your ARC and get the fixed date (확정일자) on the contract — same day if possible.
- Consider deposit guarantee insurance (전세보증금 반환보증, HUG/SGI) — the insurer pays you if the landlord cannot.
Jeonse loans for foreigners
Government Beotimmok (버팀목) jeonse loans are for Korean nationals; foreign residents generally need a bank's own product, often requiring F-visa status or a Korean spouse [conditions differ by bank]. Monthly interest for a given loan amount: 전세대출 이자 계산기 (Korean, numbers only).
FAQ
What is jeonse?
A Korean lease where you pay a large lump-sum deposit — often 50–80% of the home's price — and no monthly rent. The landlord returns the full deposit when the lease (usually 2 years) ends.
Can foreigners rent on jeonse?
Yes. Register your address (전입신고) at the community center and get a fixed date stamp (확정일자) on the contract right after moving in — that is what protects your deposit. Ask HUG or SGI whether deposit guarantee insurance is available for your visa type — it pays you if the landlord cannot.
What is the biggest risk?
The landlord not returning the deposit (전세사기, jeonse fraud) — usually when the home's debt plus your deposit exceeds its value. Check the registry (등기부등본) for mortgages before signing and compare the deposit to recent sale prices.
How is jeonse converted to monthly rent?
For existing leases the law caps the conversion at the lower of 10% or the Bank of Korea base rate + 2%p a year (Housing Lease Protection Act decree art. 9). New leases are negotiated freely, but the same rate is the market benchmark.
Sources: Housing Lease Protection Act art. 3·3-2 (opposing power, fixed date) and Enforcement Decree art. 9 (conversion rate cap). Not legal advice.