What are the rental options in Seoul?

Manlin ViP

Member since 02 December 2009

ManlinViP12 February 2013 07:09:29

1073

I am a tad confused regarding the rental payment options and I am getting contradictory answers form on-line research and I was hoping the someone here could help me with some answers.

I have been told that inn Korea, there are three types of rental agreements:

(a) - JEONSE/CHONSEI (KEY MONEY DEPOSIT)
(b) - WOLSE (Monthly Payment + Deposit)
(c) - KALSE (FULL PAYMENT UP FRONT)

Expats are normally barred from the Jeonse and Wolse options and are only able to rent on Kalse terms. Is this statement true?

In order to protect their pre-payment of the full 24 months most people using the Kalse option will opt for a Keun Mortgage Registration. Is this statement true?

What is the cost of a Keun Mortgage Registration and is there any an alternative to protect the Lessee?

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hanuri New member

Member since 26 August 2012

hanuriNew member13 February 2013 16:39:12

Hi,

Most people in korea, use '(a)Key Money Depost' or '(b)Monthly Payment' (or purchase house) as residence.
Even if I'm a Korean, I've never heard of (c)Kalse.

Another option is "Go-si-won" that with no deposit and cheap but shabby. Some young people stay here to pass the state exam to become a public servant.(not recommend)
the other option is "Long stays in hotel"(not recommend) it's expensive.

The monthly payment calculation is simple.
If you want to rent apartment that worth $200,000(220,000,000won)'(a)KEY MONEY DEPOSIT may be $500,000~$150,000 depend on the condition. And '(b)Monthly Payment' shall be $500~$1,500 with no deposite.

Also the deposit and monthly payment are adjustable.
For example, if you want to rent'(a)KEY MONEY DEPOSIT worth $500,000, you can contract $400,000 deposite and $100 monthly or $100,000 deposite and $400 monthly or $250,000 deposite and 250 mothly. The 'deposite payment's monthly interest is about 1%.

But I recommend '(b)Monthly Payment' and least deposte(6month) because if you deposite more also the risk would be more.