Every March in Korea sees a surge in moving demand, driven by the new school year and corporate transfers. Calculating in advance whether jeonse or monthly rent is better for you — and the total cost of moving — helps you make a smart decision. This guide covers jeonse vs rent comparison, conversion rate calculations, brokerage fees, and a full moving cost checklist based on 2026 standards.
📑 Table of Contents
Jeonse vs Monthly Rent: Pros & Cons
Jeonse is Korea's unique rental system where tenants pay a large lump-sum deposit and live rent-free. Monthly rent (wolse) requires a smaller deposit but ongoing monthly payments. Let's compare the advantages and disadvantages.
| Category | Jeonse | Monthly Rent |
|---|---|---|
| Initial Capital | High (tens~hundreds of millions) | Low (millions~tens of millions) |
| Monthly Burden | None (excluding loan interest) | Monthly rent payments |
| Deposit Return | Full refund at contract end | Only small deposit returned |
| Risk | Deposit non-return risk | Continuous cash outflow |
| Tax Benefits | Jeonse loan repayment deduction | Rent tax credit (up to 17%) |
| Best For | Those with savings or loan access | Those needing liquidity or lower upfront cost |
Jeonse-Rent Conversion Rate
When converting between jeonse and monthly rent, the conversion rate has a legal cap set by the government.
💡 Legal Conversion Rate Formula
Monthly Rent = (Jeonse Deposit - Rent Deposit) x Conversion Rate / 12
2026 legal conversion rate cap: BOK Base Rate (3.0%) + 2.0% = 5.0%
Example: Converting jeonse 300M to deposit 100M + monthly rent
Rent = (300M - 100M) x 5.0% / 12 = approx. 830K won
The legal conversion rate changes with the Bank of Korea base rate. As of February 2026, the base rate is 3.0%; a rate cut would lower the conversion rate.
The legal rate is a cap. Actual market rates vary by location and property. Tenants can request adjustments if landlords exceed the legal rate.
If jeonse loan rates (3-4%) are lower than the conversion rate (5.0%), taking a loan for jeonse may be more cost-effective than paying monthly rent.
Brokerage Fee Standards
Real estate brokerage fees in Korea have legally capped rates based on transaction type and amount.
| Transaction Type | Amount | Max Rate | Cap |
|---|---|---|---|
| Lease (Jeonse/Rent) | Under 50M | 0.5% | 200K won |
| 50M~100M | 0.4% | 300K won | |
| 100M~600M | 0.3% | — | |
| 600M~1.2B | 0.4% | — |
💡 Brokerage Fee Example
For a jeonse deposit of 300M won: 300M x 0.3% = 900K won (cap). For monthly rent, the transaction amount = deposit + (monthly rent x 100). Example: 10M deposit + 500K rent = 10M + 50M = 60M won basis.
Moving Cost Checklist
Moving costs vary greatly depending on the volume of belongings, distance, and timing. Check each item below to estimate your total cost.
01 Moving Company Fees
- ✓ Full-service packing: Studio 300~600K, 2BR 600K~1M, 3BR+ 1~2M won
- ✓ Partial packing (self-pack some): ~70-80% of full-service price
- ✓ March peak season surcharge: 20~50% above normal rates
- ✓ Ladder truck: Additional 100~250K won (varies by floor)
02 Real Estate Fees
- ✓ Brokerage commission: 0.3~0.5% of transaction value (see table above)
- ✓ Jeonse deposit insurance: 0.115~0.154%/year (HUG standard)
- ✓ Confirmed date stamp: 600 won (community center)
- ✓ Address registration: Free (community center or Gov24)
03 Move-in Cleaning & Repairs
- ✓ Move-in cleaning: Studio 80~150K, Apartment 150~350K won
- ✓ AC install/transfer: 80~150K won per unit
- ✓ Wallpaper/flooring (optional): Studio 400~800K, Apt 1~3M won
04 Other Costs
- ✓ Internet/TV transfer: Free~50K won (depends on contract)
- ✓ Mail forwarding: Free (apply at post office)
- ✓ New appliances/furniture: Hundreds of thousands to millions of won
Pre-Move Must-Check Items
💡 5 Essential Pre-Move Checks
Verify mortgages, liens, and ownership changes. If mortgages exceed the jeonse deposit, it's risky. Check at the Internet Registry Office.
Check if the property qualifies for jeonse deposit insurance through HUG or SGI Seoul Guarantee. Properties ineligible for insurance carry higher deposit return risk.
File your address registration and get a confirmed date stamp on moving day to establish legal protections. Process at community center or Gov24.
Before moving in, thoroughly inspect walls, floors, plumbing, electrical, and heating. Photograph everything to prevent disputes when moving out.
Check what's included in maintenance fees (water, internet, heating) versus what's billed separately. Additional maintenance costs can be significant beyond rent.
Conclusion
Moving is not just about transporting belongings — it's a major financial decision involving deposits, rent, brokerage fees, moving costs, and maintenance fees. March peak season comes with surcharges, so move your schedule earlier or use weekdays if possible. Use CalKit's calculators to simulate your optimal choice in advance.