How the calculator works

What are jeonse and monthly rent?

Jeonse is a Korean lease where you hand the landlord a large lump-sum deposit, often 50–70% of the home’s price, and pay no monthly rent. You get the full deposit back when you move out. The landlord earns by using or investing the money.

Monthly rent (wolse) uses a smaller deposit plus rent each month. The bigger the deposit, the lower the rent.

What does the result show?

How much money you’d have after the years you choose, for each option: your home’s value minus any loan (buying), the deposit you get back (jeonse and rent), plus savings. All three spend the same amount on housing each month; whatever an option doesn’t spend goes into a savings account. The headline compares the winner with buying.

Where do the prices and rates come from?

• Prices: median prices from the last three months of deals in the Ministry of Land, Infrastructure and Transport’s real transaction data, by district and size.
• Price growth: the Korea Real Estate Board’s monthly price index, averaged since the index began (November 2003 for most apartments).
• Rates: Bank of Korea averages for new mortgages, jeonse loans and deposits.

Data updates automatically every month.

I’m a foreigner. Can I get a loan?

It depends on your visa, income and bank. Long-term residents with Korean income can sometimes get a mortgage or jeonse loan, while many people on short-term visas can’t. Check with banks before you plan around a loan.

If you can’t borrow, choose No under “Can you get a bank loan in Korea?”. The calculator then only uses your own cash: if it isn’t enough to buy or to pay a jeonse deposit, that option is marked as not possible, and jeonse increases at renewal come out of your savings.

Is my deposit safe?

A deposit is only as safe as the landlord’s ability to return it. Be careful when the jeonse deposit is close to the home’s price; the calculator warns you when it reaches 90%. Before signing, check the property register for existing loans, register your address after moving in, and get a fixed date (확정일자) on your contract. For foreign residents, reporting your address to immigration generally counts as registering. Deposit insurance may also be available; ask about eligibility.

What about taxes?

Buying includes acquisition tax, agent fees when buying and selling, and yearly property tax (plus comprehensive real estate tax for expensive homes), using statutory rates for a one-home household. Officetels use 4.6% acquisition tax. Rules for foreign buyers can differ by area (some areas require permission to buy), so check current rules before buying.

What isn’t included?

• Moving, repairs and maintenance fees
• Income tax on savings interest and capital gains tax when selling
• Changes in rates or prices beyond the steady yearly rates you set

This is a simulation for reference, not financial or legal advice. Talk to a bank, tax adviser or licensed agent before a big decision.