Wolse/Rent (Monthly payment+deposit)
Wolse requires renters to deposit an arranged amount of money with the landlord, with monthly rent paid on a specified date of each month. The minimum deposit amount is 5million won or approximately US$ 5,500 and the deposit sum can be increased in order to lower the monthly rent fee. For instance, an increase of 5 million won in deposit money will result in a deduction of 50,000 won from the monthly rental fee. In the case the renter fails to make a monthly payment, the landlord has the right to deduct the amount from the key money deposit. The total amount of deposit sum is negotiable with
the landlord. When all the monthly payments are made and the contract is fulfilled without any problems, the entire deposited sum is returned to the tenant.
Conversion from jeonse to wolse is possible by multiplying 1/100 to the original jeonse deposit sum. Next, the wolse deposit amount is adjusted for. For example, for a jeonse house listed at 50,000,000 won: 50,000,000 x 1/100 = 500,000 (monthly payment) or 10,000,000 won (deposit) + 400,000 won (monthly payment). After completing the necessary steps, it is important to take care of the details on moving day. It can get hectic and it's important to remember the following list.
1) You will have paid 10% of the total deposit sum on the day of signing the lease contract. The rest of the money needs to be deposited into the landlord's bank account on the move in day.
2) Check with your realtor for all transaction fees and prepare the necessary amount in cash. Some landlords will require you to pay the first and last month rent on the day of the move-in. Realtors will also ask for their commission rate on the move-in date. The commission rate for general residential and housing valued between 50,000,000 and 100,000,000 is 0.4% or maximum of 300,000won. To calculate the amount, multiply the monthly rent by 100 and add the deposit amount, thenmultiply the amount by 0.4%.
3) Remember to check the calendar and try to avoid holidays and weekends. If the bank is closed, you need to prepare the deposit sum in cash in advance. It's recommended you do not carry large sums of cash.
Jeonse (Key money deposit)
Jeonse or key money deposit is a housing rental system specific to Korea. Instead of paying monthly rent to a landlord, a large lump sum payment is deposited into the landlord's bank account for the duration of the contract. By law, Jeonse contracts are signed for two years. At the end of the contract, the deposited amount is returned to the renter. Some landlords prefer this method because they can collect interest from the amount deposited in the bank. However, this is not the case with all landlords as some prefer the Jeonse method simply because of the fact they purchased the property with Jeonse contracts and they lack the funds to return the large deposit amounts out of their own pockets. Some may not like the key money deposit method since depositing a large sum of money comes with risks and the difficulty of trying to come up with a large sum of money all at once. However, this method is the most advantageous for tenants since the deposited sum is wholly returned at the end of the contract.When looking to rent on a key money deposit method, the first step you must take is to check that there are no unpaid loans. It is imperative that you check the building's register before you sign. Tenants need to fulfill their contracted period if possible. If the tenant wishes to break a contract during the contracted period, negotiation with the landlord is necessary. The landlord has the right to hold the tenant's deposit until a new tenant is found. In this case, the tenant must discuss the realtor's fee for finding a new tenant with the landlord.
Housing Types
Apartment (Flat)
Apartments are the most popular housing option among Koreans. As urban development and cost of living have skyrocketed over the years, most Koreans have taken up apartments as their residential option of choice. Apartments are also preferred by most residents of Korea due to convenience. Nearly all complexes have facilities nearby such as a supermarket, district office, post office, schools and easy access to public transportation. Basic utilities such as water, gas and heating are well-established. Drawbacks to living in apartments include lack of privacy and distracting levels of noise.
Price Range
(Prices vary depending on location and the quality of the apartment complex.)
The official unit of area for housing or office spaces in Korea is the square meter(m2). But customarily, the unit 'pyeong' is still used as well. One 'pyeong' is equivalent to approximately 3.3 square meters. An average small-sized apartment is approximately 81 square meter(m2) and the purchasing price ranges from US$165,500~250,000. Depending on locations some apartments of the same size (81 m2) can cost US$ 350,000~500,000. Mid-sized apartments measuring 119m2 average US$ 900,000 ~ 1.1 million Large-sized apartments measuring 168m2 will set you back US$1.3 ~ 1.6million.
When choosing to live in an apartment complex you must consider some inconvenient factors.
First of all, the units are somewhat smaller than what one might be accustomed to abroad. Since the units are tightly-packed into each complex, lack of privacy is a concern. Looking for a parking space after work can be daunting as most complexes do not designate parking spots to each unit.
Officetel
Officetels are high rise buildings with both residential and office units available and are quite popular with single working-class Seoulites and students. The preferred short-term housing solution of most, contracts range from a year to two years. Officetels were introduced with the purpose of providing the ultimate convenience by providing office space within a residential building for the working class. If you don't plan on staying in Korea on a long-term basis, officetels are convenient since they come fully furnished. Officetel tenants are responsible for the monthly maintenance fee and additional utilities fee.
Detached House
As a stand-alone structure on its own lot, these houses are usually two stories high and include a garden or a yard. Residential houses are becoming harder to find in urban settings in Korea. These houses are easier to locate in old Seoul, north of the river. Private houses for foreigners can be commonly seen in Itaewon, Ichon-dong and Pyeongchang-dong.
Hanok
Hanok or traditional Korean homes can be seen in the old part of Seoul or more specifically north of the Han River. Bukchon Hanok Village is one area with well preserved traditional homes. Traditional Korean homes were constructed in relation to the surroundings. Proper positioning of the house in relation to its surroundings was considered very important. The interior of the house was planned just as carefully.The ondol or heated floors kept the house warm during the frigid cold winter months while the wide front porch kept it cool during the scorching hot summer months.
It is interesting to note many remodeled traditional homes are appearing in the city. These remodeled homes have various modern amenities to go along with the beauty of traditional architecture.
