Jeonse (전세) and Wolse (월세) are the two primary rental systems in South Korea, each with distinct characteristics:

Jeonse System

• Requires a large lump-sum deposit, typically 50-80% of the property's value12
• No monthly rent payments during the contract period2
• Usually a two-year contract, renewable for another two years by law2
• Deposit is returned in full at the end of the contract1

Wolse System

• Involves a smaller deposit (ranging from $500 to $50,000+ USD) and monthly rent payments1
• Monthly rent typically ranges from $100 to $1000+ USD1
• More flexible contract periods compared to Jeonse2
• Deposit is returned at the end of the contract, minus any deductions2

Key Differences

1. Upfront Cost: Jeonse requires a much larger initial investment compared to Wolse2
2. Monthly Payments: Jeonse tenants live rent-free, while Wolse tenants pay monthly rent12
3. Financial Risk: Jeonse carries a higher risk of deposit loss if the landlord defaults, while Wolse involves ongoing rent payments2
4. Flexibility: Wolse offers more flexibility for short-term stays or those with limited savings2
5. Investment Opportunity: Jeonse allows tenants to potentially save more money over time, as they're not paying monthly rent3
6. Popularity: Jeonse is more popular among Koreans and long-term residents, while Wolse is more common among expats and short-term residents5
7. Bargaining Power: Jeonse tenants typically have more bargaining power with landlords due to the large upfront payment2

In summary, Jeonse offers the potential for rent-free living and savings accumulation but requires a substantial upfront investment, while Wolse provides more flexibility and lower initial costs but involves ongoing monthly expenses.