Jeonse (전세) System

Jeonse is a deposit-based rental system unique to South Korea. Instead of monthly rent, tenants pay a large lump sum deposit.

Key Features

• Deposit Range: Typically 50-80% of the property's value14
• Typical Deposit: 200-500 million KRW for a 2-bedroom apartment in Seoul
• Contract Duration: Usually 2 years, with an option to renew for another 2 years by law5
• Return of Deposit: Legally required within 30 days of move-out
• Average Cost: Around 300,000 USD in Seoul as of 20223

Advantages

• Live rent-free while saving money
• More stability and bargaining power with landlords5
• Stepping stone to homeownership for many Koreans

Risks and Considerations

• Hidden Risk: Potential loss of deposit if landlord defaults
• High upfront cost, often requiring bank loans3
• Exposure to interest rate fluctuations if using a loan

Tips

• Check the building's 시세 (market price) on Naver Real Estate to ensure the deposit isn't overpriced
• Verify the landlord's financial stability
• Consider loan options and interest rates carefully