Housing contract

Types of Payment

Jeonse (Key money deposit)

Jeonse, or key money, involves paying a large lump sum payment into the landlord’s bank account for the duration of the contract. While some may be wary about depositing a large sum of money, this method is the most advantageous payment method for renters since monthly rent is not required, and the deposit paid at the beginning of the contract, which generally tend to be for one to two years, is fully refunded at termination. When looking to rent on a key money deposit method, be sure to check 1) that the building has no unpaid loans, and 2) the building’s registry. Should a tenant decide to terminate early, negotiation with the landlord is necessary, and certain recompense may be requested.

Wolse(Monthly payment+deposit)

Wolse requires renters to pay monthly rent paid and a key deposit that is generally between 10 to 20 times the monthly rent. If a renter fails to make rent, the landlord has the right to deduct the amount from the deposit. The total amount of the deposit is negotiable. When the contract is fulfilled without issue, the entire deposited sum is returned to the tenant.

Wolse Type 2 (Monthly payment + no deposit)

A second type of Wolse system requests renters pay advance payment of the monthly rent on a set date every month for the entire lease term, with no deposit required. This system is particularly popular in areas with high foreign populations.

Signing Lease Agreements

The following is a list of steps one should take before signing a lease agreement:

  • 1 Check the building’s registry at the Court of Justice Registry Office and ensure that the house does not have any unpaid loans. Have the realtor print it on the spot.
  • 2 Discuss details of the contract before signing, and make sure the tenant, landlord and realtor’s contracts all contain identical details. Details that must be double-checked are deposit and rent amounts and method of payment, realtor commission, move-in date and lease termination date. Remember that the renter is liable for the contents of the contract.
  • 3 Prepare all sums due to be paid on the day the lease is signed, such as 10% of the total deposit at the lease signing.

The following is a list of steps one should take after signing a lease agreement:

  • 4Prior to making any payments on move-in day, check the building’s registry again for any changes.
  • 5Prepare all sums due to be paid on move-in day, such as the remaining deposit sum as well as realtor commission fee.
  • 6Obtain a copy of the registration date certificate, or hwakjeongilja. To do this, take your alien registration or residence card and your contract to the local district office. Registering your move validates the contract between renter and landlord, providing legal protection of a renter’s contract and ensuring the renter’s right to collect back the deposit.
  • 7Report your new address to the Immigration Office within 14 days.