[Real Estate Series: 06] Renting in Korea? Don’t Make These Common Mistakes

Renting an apartment in South Korea can be an exciting adventure, but it’s easy to make mistakes, especially if you’re new to the country. Whether you’re moving for work, school, or just to explore, knowing the ins and outs of renting can save you money, time, and stress. Here are some of the most common mistakes people make when renting in Korea and how to avoid them. 

Mistake 1: Assuming You Can Rent Without Employment 

Finding an apartment in South Korea can be challenging. But don’t worry—there are ways to rent without a job. 

• Large deposits: Some landlords may agree to rent you a place if you can provide a big deposit upfront. 

• Jeonse system: This is a unique Korean rental system where you pay a huge lump sum of money (50-80% of the property’s value) instead of monthly rent. You get your money back when your lease ends. 

• Prepaying rent: Some landlords are willing to rent to you if you pay a few months of rent upfront. 

If you’re jobless, be prepared to get creative with one of these options! 

Mistake 2: Underestimating Rent Prices 

Before you start looking for an apartment, it’s essential to know how much you can afford. Rent prices in Korea vary a lot depending on the city and neighborhood. For example: 

• Seoul (city center): Around 1,206,611 KRW (~905 USD) for one-bedroom apartments. 

• Busan (city center): About 658,333 KRW (~495 USD) for a one-bedroom. 

• Daegu (city center): An average of 554,709 KRW (~416 USD) for a one-bedroom. 

• Incheon (city center): Around 525,000 KRW (~394 USD) for a one-bedroom. 

These prices are just averages—they can go up or down based on size, location, or how close you are to public transportation. Make sure you know the average prices in your preferred area so you can budget properly. 

Mistake 3: Forgetting About Extra Costs

Did you think your rent was the only thing you’d pay for? Think again! Renting in South Korea comes with a lot of additional expenses you might not expect. Here’s a quick list of what to include in your budget: 

• Utilities: Plan for about 224,921 KRW (~168 USD) each month for things like gas, water, and electricity. 

• Internet: Costs around 29,139 KRW (~21 USD) monthly. 

• Maintenance Fees (gwanlibi): Some apartment buildings charge monthly fees for shared expenses like cleaning and elevator upkeep. 

Don’t forget that some buildings might have extra costs for shared amenities or unexpected repairs, so it’s a good idea to ask in advance. 

Mistake 4: Skipping Rent Negotiation 

Many people don’t realize they can negotiate rent in South Korea. If you’re willing to put a larger deposit down or sign a lengthy lease, you might be able to talk landlords into lowering the rent. If the property has minor issues like a leaky faucet or old wallpaper, you could even offer to handle repairs in exchange for a lower price. Don’t be afraid to ask! 

Mistake 5: Not Understanding Lease Terms 

Leases in Korea are different from what you might be used to. The two most common systems are Jeonse and Wolsae. 

• Jeonse involves paying a big deposit (sometimes half of the property’s value) upfront but requires no monthly rent. 

• Wolsae is closer to what you might know as traditional renting, where you leave a smaller deposit and pay monthly rent. 

Whichever system you choose, make sure you understand the terms before signing anything. Ask questions until everything is clear—this will help you avoid surprises later. 

Mistake 6: Not Visiting the Property 

Online apartment listings can be deceiving. Pictures don't always show how small or old a place is. That's why you should always visit the property in person before making any decisions. Seeing the apartment yourself lets you check for important details like natural light, noise levels, and the overall condition.

Mistake 7: Ignoring Language Barriers 

If you don’t speak Korean, you might run into communication issues when dealing with landlords or real estate agents. Many real estate agents, or budongsan, don't speak English. If this worries you, look for an agency that specializes in helping foreigners or find an agent who speaks your language. Having someone who can explain everything is a huge help! 

Mistake 8: Falling for Rental Scams 

Unfortunately, foreigners can sometimes be targeted by rental scams. To protect yourself, follow these key tips: 

• View the property in person. 

• Don’t send money before signing a lease. 

• Be cautious of deals that seem too good to be true. 

• Always get receipts for any payments. 

• Use 전세보증보험 (Jeonse Deposit Insurance) to protect yourself from landlords who cannot repay your deposit. 

Taking these precautions can save you from losing your money or ending up in a bad situation. 

Mistake 9: Not Clarifying Responsibilities 

Before you sign a lease, talk to the landlord about who is responsible for expenses like repairs or maintenance. Some landlords might expect you to fix things on your own. Make sure you know what your responsibilities are so there are no misunderstandings later. 

Mistake 10: Ignoring Location 

Think carefully about where you want to live. Is the apartment close to your workplace or school? How long will it take to get to public transportation? Is the neighborhood quiet, or does it have a lot of nightlife? These are all important factors to think about when choosing a location. 

Also, take note of whether the apartment meets your lifestyle needs. Would you prefer a traditional apartment, a modern officetel (a studio with office-style amenities), or a shared house? 

Mistake 11: Overlooking Cultural Differences 

Renting in South Korea comes with unique cultural aspects that might surprise you, like the Jeonse system or the expectation to negotiate rent. Familiarize yourself with tenant protection laws, such as notice periods and eviction rules, to ensure you know your rights. 

Final Thoughts 

Renting in Korea doesn’t have to be stressful! By avoiding these common mistakes, you’ll find the perfect home and enjoy your time in the country. Always research, ask questions, and understand your lease before signing. Happy house hunting!