Jeonse vs Monthly Rent in korea(A Friendly Guide for Newcomers)

hello friends.

i'm a korean living in korea. i'm writing this post to help people who are looking for a place to live here. my English isn't very good. so i'm using a translator to write this, if you have any questions, please feel free to leave a comment! 

Renting in Korea : Jeonse vs Monthly Rent 

if you're thinking about living in Korea, you'll notice there are two main ways to rent a home : Jeonse and Monthly Rent. Each system is quite different, so here's what you need to know! 

busan

Jeonse 

Jeonse is a unique Korean rental system, instead of paying rent every month, you pay the landlord a huge lump-sum deposit-usually 50% to 80% of the property's value-when you move in. you then live in the home without paying any monthly rent for the entire contract period, which is usually two years. When the contract ends, the landlord returns your full deposit, as there's no damage to the property 

Pros : No monthly payments, and you get your deposit back at the end

Cons : You need a lot of cash upfront, and if the landlord can't return your deposit, you could lose a huge amount of money 

 

Monthly Rent 

Monthly rent is much more familiar to most people from overseas. you pay a smaller deposit (often several months' rent) and then pay a set amount every month to live in the home, when you move out, you get your deposit back, minus any deductions for damages. 

Pros : Lower upfront cost and much less financial risk

Cons : You pay rent every month, and that money doesn't come back to you 

Why I Don't Recommend Jeonse Recently, Jeonse fraud has become a big problem in Korea, Some landlords have collected large Jeonse deposits and then failed to return them when the contract ended, leaving tenants with huge losses. Even with careful checks, it's not always possible to avoid these risks, especially if you're not familiar with the Korean real estats system. Many young Koreans, who used to prefer Jeonse, are now switching to monthly rent because it's safer-even if it means paying more in the long run 

---

Korea is generally a safe country, and crimes like pickpocketing or robbery are quite rare. However, there are other types of crime you should be aware of. The most common crimes in Korea include fraud (such as voice phishing and rental scams) cybercrime, drug-related offenses, and property crimes like theft. While violent crimes are not common, scams-especially Jeonse (rental deposit) fraud-are a growing problem.

 

Why Jeonse Fraud Is a Serious Risk, Especially for  Foreigners

Jeonse fraud has become increasingly common in recent years. Typical scams include fake landlords, double contracts, and properties with hidden debts, Even though there are ways to protect yourself-such as checking the property's official registation using certified real estate agents, and signing up for deposit insurance-these steps can be very challenging for foreigners 

seoul.

++++++++++++++++++

Jeonse prices are rising and listings are decreasing because fewer new apartments are being built and more landlords prefer monthly rent due to high interest rates and fraud risks, and high-profile scams like the "Villa King" case-where over 1,200 tenants, many of them young people or 'foreigners' lost their deposits-have highlighted just how risky the Jeonse system can be for renters.

 

 

Sentences for fraud are relatively low in Korea