Two ways of Realty Contract in Korea
Updated: Feb 8, 2021
Korea, the home of K-pop, if you want to live in Korea, you need to know these two ways to sign a Realty contract. The first way is Jeonse
Jeonse or the Key money deposit is a unique housing rental system in Korea. Instead of paying monthly rent to a landlord, a large lump sum payment is deposited into the landlord's bank account for the term of the contract. By law, Jeonse contracts are signed for two years. At the end of the contract, the deposit money is returned to the renter.
The second one is Wolse, a monthly rental system
Wolse requires the renter to deposit a fixed amount of money to the landlord, after which the monthly rent must be paid on a specified date each month.
The deposit for monthly rent is less than for jeonse. Deposit and monthly rent are negotiable. The sum of the deposit can be increased to lower the monthly rental charge.
Both methods have the risk of losing disposit money. So If you plan to rent a house, the first step you should take is to make sure the building has no unpaid loans. It is important to check the building's register before signing.
For foreigners, it is difficult to know the risks and process for signing the contract, so you need experts. IEUM Realty has a professional interpreter and expert for realty, legal, and tax affairs to help you with your contracts.
If you want to know our service more, please send a message.