Jeonse-to-Sale Ratio Calculator

Overview

The jeonse-to-sale ratio calculator computes what percentage of a property's sale price the Jeonse (lump-sum lease) deposit represents, along with the 'gap' (sale price minus deposit). A ratio of 80% or higher is commonly flagged as a 'ghost jeonse' (kkangtong jeonse) risk signal, and 90% or higher may fall outside HUG's Jeonse deposit-return guarantee eligibility. You can also work in reverse — enter a target ratio to back into an appropriate deposit amount for a given sale price, useful for gauging a safety margin before signing a lease.

Formula

Ratio(%) = Jeonse deposit ÷ sale price × 100
Gap = sale price − Jeonse deposit
Reverse: suggested deposit = sale price × target ratio ÷ 100
e.g., ₩400,000,000 sale price, ₩300,000,000 deposit → ratio 75.0%, gap ₩100,000,000

How to Use

1. 1Choose a direction — compute the ratio from sale price and deposit, or back into a suggested deposit from a target ratio.
2. 2Enter the sale price (ideally a recent actual transaction price) in 10,000-won units.
3. 3Enter the Jeonse deposit (or the target ratio).
4. 4Check the ratio, the gap, and the 80%/90% risk-signal thresholds.

Examples

Background

The jeonse-to-sale ratio is a key indicator Korea's Ministry of Land, Infrastructure and Transport and local governments use to flag jeonse-fraud risk: the higher the ratio (the smaller the gap between sale price and deposit), the more a tenant stands to lose if the landlord cannot return the deposit and the home goes to auction. HUG's (Korea Housing & Urban Guarantee Corporation) Jeonse deposit-return guarantee generally requires that senior liens plus the deposit stay under a threshold around 90% of the home's value (specifics vary by housing type), so listings above that line are often refused guarantee coverage — which is why a 90%+ ratio is widely treated as a warning sign. Because the ratio depends heavily on which sale price is used (actual transaction, appraisal, or asking price), results here are for reference only; always cross-check the property register for senior mortgages and other liens.

Tips

• ✔A low ratio alone doesn't guarantee safety — always check the property register for senior mortgages or liens.
• ✔Use a recent actual transaction price (from Korea's real-transaction price disclosure system) as the sale price; asking prices can be inflated.
• ✔New villas and officetels can be hard to price accurately, which widens the margin of error in this ratio — cross-check with nearby transactions or an appraisal.
• ✔Confirm HUG Jeonse deposit-return guarantee eligibility directly before signing — it's a separate, concrete safeguard beyond this ratio.

FAQ