South Korea – Property Letting

How does the property letting process work in South Korea?

The letting process in South Korea typically starts with a landlord appointing a licensed real estate agent (공인중개사, Gong-in Junggaesa) to market the property through platforms such as Naver Real Estate or Zigbang. The use of a registered professional intermediary is deeply ingrained in South Korean property culture, and unlike many other markets where direct landlord-to-tenant advertising is commonplace, working through a qualified agent is the standard expectation in almost all residential rental transactions.

A carefully prepared rental contract (임대차 계약서, Imdaecha Gyeokseo) is fundamental to any tenancy arrangement. The document should be drawn up in Korean — with an English translation provided for reference — and must set out all agreed terms in full. Korean law, unlike some common-law systems where oral agreements can carry weight in tenancy disputes, places primary emphasis on written evidence, so a comprehensive written contract is essential.

The agreement should clearly specify the monthly rent figure, payment due dates, the method of payment, and which utilities or maintenance costs fall within the scope of the rent. The deposit amount and the precise conditions governing its return at the end of the tenancy must also be clearly recorded in the contract to prevent future disagreements.

The Housing Lease Protection Act sets the framework within which these contracts operate and establishes a floor of rights for all residential tenants. The legal minimum lease term is two years, but a significant 2020 legislative reform extended tenant protections further: a tenant may now request one two-year renewal, provided the request is made between six and two months before the original contract’s expiry date.

Both landlords and tenants are advised to verify the property’s title before completing any agreement. Ownership records should be inspected through the real estate registry (등기부등본, Deung-gibudeungbon) to confirm that no financial encumbrances — such as liens or outstanding mortgages — exist that could compromise the tenancy. This verification is especially important for foreign landlords who may be delegating responsibilities to agents acting on their behalf.

What types of rental arrangements are available in South Korea?

South Korea’s residential rental market is structured around three principal contract formats: Jeonse (lump-sum deposit lease, 전세), Wolse (monthly rent, 월세), and Banjeonse (a blended deposit-and-rent arrangement, 반전세). Understanding how each works is a prerequisite for any landlord setting up a tenancy in the country.

Jeonse is a rental model found almost exclusively in South Korea. Rather than paying monthly rent, the tenant hands over a substantial upfront lump sum — typically equivalent to 50–80% of the property’s market value. This amount functions effectively as an interest-free loan available to the landlord for the duration of the lease, and no monthly payments change hands during the tenancy. There is no statutory cap on the level of a Jeonse deposit; the sum is determined by mutual agreement and prevailing market conditions. The landlord is legally obliged to return the deposit in full when the tenancy concludes.

Wolse is the conventional monthly rent model and is the format most familiar to foreign tenants and landlords. The tenant pays a modest initial deposit alongside a monthly rental sum, with contracts typically running for one to two years. The deposit is ordinarily set at somewhere between ten and twenty times the monthly rent. This structure broadly mirrors residential letting arrangements found across Europe, Australia, and many other regions.

Banjeonse — literally meaning “half-Jeonse” — combines features of both models. The tenant provides an upfront deposit that is meaningfully larger than a typical Wolse deposit but falls well short of a full Jeonse amount, and then pays a correspondingly reduced monthly rent. It represents a flexible middle ground that has grown in popularity in the Korean housing market.

The regulatory environment for short-term and holiday letting has become considerably more restrictive. From September 2025, only detached houses, villas, and certain approved residential apartment units are eligible to operate as lawful short-term rentals in South Korea. Studio apartments and officetels face an outright prohibition from short-term rental platforms such as Airbnb with effect from October 2025, as these property categories are classified as commercial buildings and excluded from permitted short-term accommodation uses.

Both domestic and overseas hosts are required to obtain business registration and accommodation licences in order to list properties lawfully on booking platforms following the 2024–2025 reforms. These requirements are applied equally regardless of the host’s nationality. Landlords should monitor updates from the Ministry of Culture, Sports and Tourism and from their local city hall, as this regulatory area continues to develop.

What rental income can landlords expect, and how are rates set?

Rental pricing in South Korea is largely market-driven rather than determined by a fixed government schedule, though important legal constraints apply at the point of lease renewal. The initial rental level is freely negotiated between landlord and tenant, with prevailing rates varying considerably depending on the city, district, and property type in question.

Once a tenant exercises their statutory right to request a lease renewal, any increase to the deposit or monthly rent is capped at 5%. To illustrate: if a Jeonse deposit was originally set at ₩200,000,000, the landlord may raise it by no more than 5% upon renewal — a maximum additional sum of ₩10,000,000 — as governed by the Housing Lease Protection Act since 2020.

It is worth noting that this 5% ceiling applies specifically when the tenant is renewing under their legal right. If both parties agree instead to execute an entirely new contract rather than exercise the statutory renewal, no legal ceiling exists on the magnitude of the deposit increase. Landlords should be transparent about this distinction, as tenants who are unfamiliar with the system may be caught off guard, and disputes can follow.

For reliable, up-to-date market rental data, landlords can refer to Naver Real Estate or the Korea Real Estate Board (R-ONE), which publishes transaction statistics and lease price trends for apartment markets across the country. Given that regional conditions can move quickly, landlords should consult authoritative sources rather than relying on older figures.

Do landlords need to provide a furnished or unfurnished property in South Korea?

No statutory obligation exists in South Korea compelling landlords to furnish a property before letting it. The vast majority of long-term residential tenancies — Jeonse and Banjeonse arrangements in particular — are offered with little or no furniture, and tenants entering these contracts are generally expected to supply their own household goods and appliances.

Properties let on Wolse terms and targeted at expatriate tenants or shorter-term occupiers are more likely to include basic fittings such as a refrigerator, washing machine, and air conditioning unit, particularly in urban apartment blocks. Any inclusions of this nature are a matter for negotiation and should be itemised in the contract to provide clarity at the end of the tenancy and avoid arguments over condition or ownership.

Fully furnished short-term lets and serviced accommodation — including goshiwons and serviced apartments — typically come equipped to a ready-to-move-in standard. The presence or absence of furnishings does not in itself alter the legal category of the tenancy, though it may influence rental pricing and the profile of tenants the property attracts. South Korea does not operate a separate tax category for furnished lettings equivalent to, for example, the Rent-a-Room scheme in Ireland or the United Kingdom — all rental receipts are treated together for tax purposes.

Do you need a licence or registration to let a property in South Korea?

For conventional long-term residential letting under Jeonse or Wolse contracts, South Korea does not impose a separate landlord licence requirement. Once a foreign national has properly registered property ownership, they acquire the same rights over that property as any Korean citizen, including the ability to lease, sell, develop, or transfer it on equivalent terms.

For short-term letting via platforms such as Airbnb, however, licensing requirements are now firmly established. From October 2024, newly listed properties on Airbnb must provide accommodation licence details in line with applicable regulations, and properties that were already listed must similarly submit the requisite documents. The Tourism Promotion Act and its implementing decrees, together with the Building Act and Residence Act, set out the foundational rules governing urban accommodation establishments open to foreign visitors — covering single homes, multi-family dwellings, apartments, townhouses, and multiplex houses.

The specific requirements that apply in practice can differ between municipalities, depending on the type of property and the location in which it is situated. A landlord operating in Seoul may face different procedural requirements from one based in Busan or on Jeju Island. Before listing any property as a short-term rental, landlords should seek guidance from their local city hall (시청) or district office (구청) regarding the precise registration obligations that apply in their area.

It is also important to check whether the building itself has any internal restrictions. Many apartment complexes and officetel buildings have management bylaws that prohibit short-term rental activity, and these rules bind all owners within the building regardless of their nationality. Confirming the building’s regulations before proceeding with any letting arrangement is therefore strongly advisable.

How do you obtain a landlord licence or register as a landlord in South Korea?

The steps below are directed primarily at landlords seeking to operate a legally compliant short-term accommodation business in South Korea. Standard long-term residential lettings do not require a formal landlord licence, although the property must be registered in the owner’s name within the real estate registry.

1. Confirm property eligibility: From September 2025, only detached houses, villas, and specifically approved residential apartments are permitted to function as legal short-term rentals. Verify with your local district office that the property you intend to list falls within an eligible category before taking any further steps.
2. Register the business: Hosts wishing to list on short-term rental platforms must submit business registration details along with a business registration certificate. Registration is carried out through the National Tax Service (NTS) or the relevant local tax office.
3. Obtain an accommodation licence: Submit an application to your local district office (구청) or city hall (시청) for an accommodation establishment licence under the Tourism Promotion Act. Documentation typically requested includes evidence of property ownership, floor plans, and identification documents.
4. Submit licence information to the platform: Properties listed before 2 October 2024 were required to submit their accommodation licence details by 16 October 2025; those failing to do so by that date are unable to receive new bookings. Properties listed after that date must provide licence details at the time the listing is created.
5. Ensure tax compliance: Register for VAT where applicable and ensure all business income is declared to the NTS. South Korea’s tax year runs from 1 January to 31 December, and income tax returns must generally be filed by 31 May in the year following the end of the tax year.
6. Check building bylaws: Confirm that the building’s management body permits short-term letting activity and obtain any written authorisation required under the building’s internal rules, bearing in mind that these apply to all owners equally.

Fees associated with business registration and accommodation licences are determined at the municipal level and are subject to revision — landlords should verify the current applicable charges with the Ministry of Culture, Sports and Tourism and their local district office. As of 2025, these fees vary by region. Always obtain confirmation of current requirements directly from the competent authority before proceeding, as procedures and costs change over time.

What are the rules around deposits in South Korea?

Deposits occupy a central and defining role in South Korean rental culture, and the rules that govern them are strikingly different from the deposit protection frameworks found in many other countries. Korean deposits are frequently of a magnitude that would be extraordinary by international standards — even in relatively modest Wolse arrangements, the deposit can amount to the equivalent of a year’s rent or more.

Unlike the United Kingdom and Ireland, where landlords are legally required to lodge deposits with a government-approved third-party custodian, South Korea has no mandatory centralised deposit protection scheme. Instead, the burden falls on tenants to take proactive steps to safeguard their own interests. To establish their right to reimbursement, a tenant must register their move-in (전입신고) at the local community centre within two weeks of occupation and secure a fixed-date stamp (확정일자) on the lease contract.

For Jeonse arrangements in particular, the deposit may also be covered by insurance underwritten by the Korea Housing and Urban Guarantee Corporation (HUG). Subject to certain conditions relating to the property’s value and the deposit amount, this insurance compensates the tenant in the event that the landlord defaults on their obligation to return the sum. Landlords should recognise that tenants may seek such cover and that doing so involves scrutiny of the landlord’s financial position.

Concerns over Jeonse fraud have grown in recent years, driven by rising property prices, falling interest rates, and elevated debt levels among some landlords — a combination that has led certain owners to over-mortgage their properties and subsequently find themselves unable to return deposits in full. Landlords must ensure their financial affairs do not place them at risk of defaulting on this obligation, as the legal consequences of failing to return a deposit are severe.

At the conclusion of the tenancy, the deposit must be returned without undue delay. Even for a compact studio apartment, deposits typically start at ₩5,000,000 or ₩10,000,000, and the full amount must be repaid unless specific, documented deductions are justified. Withholding any portion of the deposit requires the landlord to demonstrate that damage beyond fair wear and tear has occurred, or that the tenant has left unpaid obligations outstanding.

Who is responsible for maintenance and repairs in South Korea?

The law places on landlords a clear duty to provide and maintain a safe and habitable property. This encompasses responsibility for carrying out necessary repairs, ensuring that utility services function properly, and keeping shared areas in an acceptable condition. Landlords who neglect these obligations expose themselves to legal proceedings from their tenants.

Tenants are entitled under rental and tenancy legislation to occupy a property that meets basic habitability standards. The landlord’s obligation to deliver and maintain a liveable space — free from conditions that pose a risk to health or safety — is broadly comparable to the implied duty of care imposed on landlords in civil law jurisdictions across Europe.

For minor and routine maintenance matters — replacing a light bulb, clearing a blocked drain, or rectifying minor damage caused by the tenant — the cost is generally considered to fall within the tenant’s purview. Structural defects, issues that compromise the habitability of the property (such as roof leaks, heating failure, or electrical faults), and the upkeep of fixtures and fittings that formed part of the original letting are matters for the landlord to address and fund.

Disputes regarding maintenance responsibilities are not uncommon in the Korean rental market. A small claims court procedure has been introduced to reduce the practical burden of pursuing such cases through the full legal system. Claims against a landlord of up to ₩20 million can be heard in the small claims court, and proceedings in that forum allow tenants to make oral statements rather than file formal written petitions, with the usual evidentiary and procedural requirements relaxed. Landlords should therefore take maintenance obligations seriously, as the accessibility of this system makes claims a realistic prospect.

How are letting agents used in South Korea, and what do they charge?

Licensed real estate professionals — known colloquially as budongsan (부동산) or formally as Gong-in Junggaesa — occupy a pivotal position in South Korea’s rental market. The overwhelming majority of residential rental transactions pass through an agent rather than being arranged directly between landlord and tenant. Agents handle advertising, property viewings, negotiations, and contract preparation as a matter of course.

A point worth understanding is how realtors relate to the parties they serve. While agents formally act on behalf of both sides in a transaction, their commercial interests may not be equally balanced between landlord and tenant. Landlords tend to provide agents with more consistent and repeat business, which can influence the priorities of individual practitioners. Landlords should be conscious of this dynamic when relying heavily on agent recommendations.

Agent commissions in South Korea are regulated by law and calculated as a percentage of the transaction value. As of 2025, the legally permitted commission rate for residential lettings varies according to contract type and transaction size. For Wolse (monthly rent) contracts, the combined fee payable by landlord and tenant together is generally capped as a proportion of the total monthly rent multiplied across the contract period, with the precise rates set by regional ordinance. For Jeonse contracts, the commission is ordinarily calculated as a percentage of the total deposit. Both landlord and tenant are each expected to pay a share of the agent’s commission — a notable distinction from the United Kingdom, where legislation introduced in 2019 prohibits agents from charging fees to tenants.

Since agent commission rules can be amended by local government, landlords should verify currently applicable rates with the Ministry of Land, Infrastructure and Transport (MOLIT) or their local district office. Always request a written fee agreement from any agent before engaging their services.

What taxes apply to rental income in South Korea?

Both resident and non-resident landlords are subject to South Korean income tax on rental receipts. If you are a non-resident receiving income from South Korean accommodation services, that income falls within the scope of Korean income tax and must be declared to the National Tax Service (NTS), unless a relevant double taxation treaty provides for different treatment. Landlords may also be liable for property taxes and the Comprehensive Real Estate Tax levied by the Korean government on the basis of publicly notified property values.

Where annual rental income exceeds ₩24 million, tax is calculated by reference to actual documented expenses. The landlord deducts qualifying costs — including management fees, maintenance expenditure, and other eligible outgoings — from gross rental receipts, with effective expense ratios that in practice typically fall within a range of approximately 15% to 48% of income. Below this threshold, a simplified deduction method may be available — the NTS should be consulted for current thresholds as of 2025.

Many non-resident individual investors choose to hold South Korean property through a limited liability company structure (YooHan hoesa). In addition to a 22% flat tax on passive rental income, this arrangement provides a transparent mechanism for repatriating profits once Korean tax obligations have been satisfied. The relatively modest requirements for establishing such a corporate vehicle make this an accessible option for overseas investors.

Properties exceeding a defined value threshold — such as ₩600 million for residential houses — may attract the Comprehensive Real Estate Holding Tax (CRET), which ranges from 0.5% to 2% depending on the property’s value and classification. These figures are correct at the time of writing; current thresholds should always be verified with the NTS.

For investors resident in a country that has entered into a tax treaty with South Korea, it is generally possible to apply Korean taxation at source and subsequently claim a credit or exemption against the tax payable in the country of residence, substantially reducing the risk of double taxation. South Korea maintains tax treaties with a broad range of countries — the National Tax Service website can be consulted to check whether your country of residence is covered.

South Korea’s tax year runs from 1 January to 31 December, with income tax returns ordinarily due by 31 May in the year following the relevant tax year. Returns may be submitted to the NTS either on paper or through the NTS online portal. Non-resident landlords are strongly encouraged to appoint a locally based tax adviser with expertise in cross-border rental taxation arrangements.

What are the rules around ending a tenancy or evicting a tenant in South Korea?

South Korea’s tenancy legislation is strongly oriented towards protecting tenants, a characteristic that became even more pronounced following the 2020 legislative reforms. The minimum legal residential lease term is two years, and a tenant may request a two-year extension by giving notice between six and two months before the contract’s expiry. A landlord can decline this renewal request only for specified reasons — for example, where they intend to occupy the property personally or accommodate a close family member, or where the tenant has committed serious breaches such as providing false documentation, subletting without permission, or causing substantial damage.

The practical effect of this framework under the Housing Lease Protection Act is that a standard two-year tenancy can become a four-year commitment in total if the tenant exercises their renewal right. During this renewal phase, the landlord has no grounds to refuse unless a legally recognised justification applies. This degree of protection exceeds what is available to tenants in many comparable jurisdictions, including Germany’s notice-based termination system and the fixed-term regime commonly used in Australia.

In the event of a tacit renewal — where neither party takes formal action before the contract expires — the tenant may serve notice to terminate at any point during the renewed period. However, termination does not take effect until three months after the landlord receives the notice. Landlords seeking to reclaim possession at the end of a lease must serve clear and timely notice; failure to do so risks triggering an automatic renewal on the same contractual terms.

Where eviction is sought on grounds of non-payment or a material breach of contract, the landlord must follow formal court procedures. Taking matters into their own hands — by changing locks, removing the tenant’s belongings, or otherwise restricting access — is prohibited and can expose the landlord to civil liability. Any contested eviction matter warrants prompt legal advice from a qualified Korean attorney.

Legislative proposals that would have introduced unlimited renewal rights for tenants have been debated in recent years but were ultimately withdrawn following significant opposition from lawmakers and real estate industry bodies. Nonetheless, the legislative environment affecting tenancy law remains dynamic, and landlords should keep abreast of developments through the Ministry of Land, Infrastructure and Transport.

What should expat landlords know about managing property remotely in South Korea?

Managing South Korean property from overseas is straightforward in legal terms but demands careful operational planning. As of early 2026, a foreign national who has properly registered property ownership in South Korea enjoys the same rights over that asset as any Korean citizen — including the full ability to lease, develop, or dispose of the property.

The most common mechanism by which non-resident landlords delegate authority to a local representative is a power of attorney (위임장). The representative — who might be a property management company, a solicitor, or a trusted private individual — can be authorised to sign contracts, collect rent, and handle deposit returns on the landlord’s behalf. The document must generally be notarised and, depending on the country of issue, either apostilled or legalised before it carries legal effect in Korea. The scope of authority conferred should be explicitly defined within the document to avoid ambiguity.

Non-resident landlords receiving South Korean-sourced income are required to report it to the NTS unless treaty provisions dictate otherwise. In practice, many engage a Korean-based tax agent or accountant to file returns on their behalf. Where real estate is disposed of by a non-resident or a foreign corporation without a permanent establishment in Korea, a withholding mechanism may apply such that income is deducted at source before remittance — a matter that needs to be reconciled through the annual tax return.

The repatriation of rental proceeds is generally permitted under South Korea’s foreign exchange regulations, but non-resident landlords should confirm that their arrangements comply with requirements set by the Ministry of Economy and Finance and their bank’s own foreign currency procedures. Engaging a South Korean property management company for day-to-day oversight, maintenance coordination, tenant liaison, and deposit handling is strongly recommended — all of these functions require a local presence and Korean-language capability that is difficult to sustain from abroad.

Frequently Asked Questions

Can a non-resident own and let property in South Korea?

As of early 2026, foreign nationals may own residential property in their own name in South Korea and, once properly registered, hold equivalent ownership and leasing rights to those enjoyed by Korean citizens. However, since August 2025, foreigners purchasing residential property within the Seoul metropolitan area must secure prior government approval and satisfy a two-year residency requirement, which may have implications for non-resident investment strategies. Outside the designated approval zones, earlier reporting obligations continue to apply.

Do I need a local agent to let my property in South Korea?

There is no legal obligation to engage a licensed agent for long-term residential lettings, but working through one is strongly advisable in practice. A licensed real estate professional helps ensure the contract is legally sound and reduces the risks associated with informal arrangements. For non-resident landlords in particular, a locally based agent or property manager provides indispensable on-the-ground support that cannot easily be provided from overseas.

What is Jeonse and should I offer it as a landlord?

The Jeonse deposit functions in practice as an interest-free loan extended to the landlord by the tenant — the landlord has the use of a substantial capital sum throughout the tenancy and may invest it, repay debts, or generate interest income with it. The attraction for landlords is access to significant liquidity without monthly income obligations. However, landlords who cannot guarantee the full return of the deposit at the end of the tenancy face serious legal exposure. Wolse (monthly rent) contracts involve less concentrated financial risk for both parties and are generally more straightforward for foreign landlords to manage.

Is there a cap on how much I can increase the rent in South Korea?

Where a tenant exercises their statutory renewal right under the Housing Lease Protection Act, any increase to the deposit or monthly rent is restricted to a maximum of 5%, effective since 2020. This restriction does not apply if both parties elect to sign an entirely new contract rather than proceeding under the statutory renewal mechanism, though landlords should note that doing so does not extinguish the tenant’s underlying renewal entitlement and may damage the landlord-tenant relationship.

Can I let my property as an Airbnb in South Korea?

Short-term rentals are permitted in South Korea but are subject to mandatory licensing. From October 2025, studio apartments and officetels are excluded from platforms such as Airbnb, leaving detached houses, villas, and approved residential apartments as the principal eligible property types. All hosts must register with their local district office and provide accommodation licence details to any booking platform on which they list. Non-compliance with these requirements exposes hosts to regulatory enforcement action.

How does deposit protection work in South Korea?

South Korea does not operate a mandatory centralised deposit protection scheme of the kind found in the United Kingdom or Ireland. Instead, tenants are responsible for protecting their own position: they must register their occupation (전입신고) at the local community centre within two weeks of moving in and obtain a fixed-date stamp (확정일자) on the lease agreement. For Jeonse arrangements, the deposit may additionally be insured through the Korea Housing and Urban Guarantee Corporation (HUG), which compensates tenants if a landlord fails to return the deposit. Landlords should be aware that tenants actively using these protections will result in scrutiny of the landlord’s financial standing.

What taxes do non-resident landlords pay on South Korean rental income?

Non-resident landlords earning rental income from South Korean property are required to report that income to the National Tax Service (NTS), unless a double taxation treaty provides otherwise. For non-resident individual investors operating through a limited liability company structure (YooHan hoesa), a 22% flat tax rate on passive rental income commonly applies as of 2025. Residents of countries with which South Korea has a tax treaty may benefit from a reduced effective rate. Up-to-date guidance should always be obtained from the NTS website and a qualified local tax adviser.

What happens if a tenant refuses to leave at the end of a lease in South Korea?

The Housing Lease Protection Act entitles tenants to request one two-year renewal, meaning a standard two-year lease can lawfully extend to a total of four years. Once the maximum permitted renewal period has run its course and a tenant still declines to vacate, the landlord must initiate formal eviction proceedings through the courts. Resorting to self-help measures — such as changing locks or removing the tenant’s possessions — is unlawful and can give rise to civil liability. In any contested scenario, retaining a qualified Korean attorney is strongly recommended.