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Practical Information > Lodging > Long-term
Types of Lodging | Finding a Place | Amenities


Finding a Place

Real Estate Agents | Newspapers | Making a Contract


Residences are usually grouped by the number of bedrooms or their size. Sizes are measured in pyeong (1 pyeong = 3.3 sq. meters = 35 sq. feet). Note that this includes the entire area, not just the usable area and can also include common areas (such as stairwells, parking areas, walkways, etc.).

Real Estate Agents

Real Estate Agents Called Budongsan, real estate agents keep listings of nearby properties for rent or sale. Advertisements for English speaking agents who are used to dealing with foreigners can be found in the local English language newspapers. They can act as mediators with owners who do not speak English. However, they usually charge an extra fee for their language services.

Real estate agents can be found in every neighborhood. Many have signboards in front of their office or in their windows that include properties currently listed.

In addition to showing properties, real estate agents can handle the paperwork associated with making a rental or contract.

Real Estate Fees
The government sets limits on the fees that real estate agents can charge. A new rate structure went into effect in March 2003.

Contract Type Old Rate New Rate Maximum Fee
Sale 0.15~0.9% 0.4~0.6% 250,000 won
(for contracts under 50 mil. won)
800,000 won
(for contracts under 200 mil. won)
Rental 0.15~0.8% 0.3~0.5% 0.5% / 200,000 won
(for contracts under 50 mil. won)
0.4% / 300,000 won
(for contracts under 100 mil. won)

The agent will ask the prospective renter several questions to narrow down the selection of properties to show. What type of residence does the person want (apartment, villa, house, etc.), what type of housing contract , how much planning to spend, and how many rooms.

Newspapers

Although the local English language newspapers have real estate listings, they tend to target high-end business people interested in luxury properties. Sometimes they will also have listings by individuals interested in renting to foreigners.

Other weekly papers (Korean only) contain hundreds of listings for housing, grouped by area. These listings are usually placed directly by the owner, while real estate agents place some. Generally speaking, the owners will not speak English. Search through the listings, find those of possible interest, and then contact the owners (or agents) to make an appointment to see them and view the property.

Making a Contract

Generally, foreigners will not be interested in buying a home or apartment unless they plan to stay in the area for many years. For renting, owners generally use one of the following systems:
  1. Jeonse - A large deposit (also called key money) is given to the owner. Instead of collecting a monthly rent from the renter, the owner collects the interest earned on the key money. The deposit is returned to the renter at the end of the contract.

  2. Wolse - A deposit (smaller than with Jeonse) and monthly rent is paid to the owner. The higher the deposit, the lower the monthly rent. The ratio is about 50:1 (for example, 100,000 won less rent each month for each 5 mil. Won paid for the deposit).

  3. Jeonse/Wolse Combination - Many landlords are more willing to accept a combination of key money and monthly rent. The standard rate has been W100,000/month for every W5,000,000 of key money. In other words, instead of paying W40 million in key money, the landlord may be willing to accept W10 million for key money and W600,000/month. To help ensure that you get your deposit back at the end of the contract, there are several things you can do. You should file a lien against the property with the local government agency. A competent real estate office can file the necessary paperwork as part of the commission fee.
  4. Rent (Lease) - Similar to Wolse, but the full contract amount is paid in advance in one lump sum.
rental contract (Jeonse) Always use a real estate agent to make a rental contract. They can research the owner and find out if the property has any outstanding liens that may cause trouble for getting the key money returned. When the contract is signed, the renter needs to pay 10% of the contract price to guarantee that he or she will move in (this amount can sometimes be negotiated with the owner). This shows that you are serious about renting and the owner will stop looking for someone else to rent it. The remaining 90%, and the real estate agency fee, must be paid when moving into the rental property.

The Seoul Metropolitan Government can provide additional advice in English (Tel. 731- 6800~2).


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