Korean Job Discussion Forums

podjs · Joined: 18 Jun 2005

i recently signed a contract for an apartment in yongsan. i will move in next weekend. the key money is 2 million won. after signing the contract i had to pay 200,000 won as "holding money" to the landlord. i will not get this money back when i move out. is this normal?

i've asked my korean friends and they say it is normal to pay 10% of the key money to the landlord. but, i should only pay 1.8 million won for the key money when i move in (2 million key money - 200,000 'holding money').

any advice would be greatly appreciated.

ladyandthetramp · Joined: 21 Nov 2003

I've never heard of that. Wouldn't be surprised if he cheated you. Was this "holding money" written in your contract?

podjs · Joined: 18 Jun 2005

wasn't written in the contract. the contract only mentions the monthly rent and the key money.

canuckistan · Posted: Wed Nov 16, 2005 7:25 am Post subject:

teachmeenglish · Joined: 14 Dec 2004

100% normal so dont worry. I was scared about this at first becuase for us it was 30 million key money = 3 million deposit. One thing to be certain of is that it is the actual owner that signs the contract, not thier son, mother or what not. If the owner does not sign it it is not legal. In our case we let go of a wonderful apt becuase the "owner" was the daughter studying in the US, and could not sign it. My guess beign that to avoid taxes they put it in her name. So check on that

podjs · Joined: 18 Jun 2005

it's definitely the owner that signed the contract.

does this mean i have to pay 2.2 million (key$ + holding$) or should i argue with the land lord and only pay 1.8 million (key$ - holding$)?

denverdeath · Joined: 21 May 2005 Location: Boo-sahn

If a couple of people have verified that you're expected to pay 10% to the landlord, then maybe it's feasible. It almost sounds like it's more of a fee a realtor/broker/intermediary would receive for closing the deal. Anyway, if your key money is 2mil, 10% is 200,000, making the total 2.2mil. That's the way I see it anyway.

jacl · Joined: 31 Oct 2005

You gave money to someone and expect to get it back? I wouldn't even pay a deposit in this fucking land. They just act like they don't need your rent. That's just the way they are. I could go out now, get a fucking apartment and pay NO deposit whatsoever. I really sweet place.

Don't give anyone any money anymore. Seriously.

Pyongshin Sangja · Joined: 20 Apr 2003 Location: I love baby!

Yup, that's the best advice so far.

There will be a fee around 200-250,000 for the realtor, but it shouldn't be mentioned in the contract. There is normally not a withheld amount. Never heard of this before.

Stop giving deposits.

lastat06513 · Posted: Wed Nov 16, 2005 4:03 pm Post subject:

Did you move in yet?
If you didn't move in yet, then the holding fee is used to hold the apartment for you until you move in. It also acts as a guarantee that you would move into the apartment.
But I don't pay THAT much (usually, it is about 50,000 to 100,000 won, depending on the apartment)

As for not paying a deposit, there are places where you don't need a deposit, but those places usually have high monthly rent.

I know of a good realtor in Haebangchon, it's Eden Realty, the guy is cool and most of his apartments are in the 2 million/ 300,000 won a month range.

ladyandthetramp · Joined: 21 Nov 2003

billybrobby · Joined: 09 Dec 2004

When I moved in, I paid 500,000 deposit when i signed the contract, BEFORE i paid the key money. it's just to make sure people don't go around signing a bunch of contracts, trying to 'hold' an apartment while they look at others.

The deposit was deducted from my overall deposit. My overall deposit was 5,000,000. I paid 500,000 when i signed the contract and 4,500,000 when i moved in. I'm due to get 5,000,000 when I move out. hopefully. all my korean friends said that this was kosher.

also, there is the damn finder's fee for the real estate company.

and the monthly maitanence fee. man, korean apartments suck. but nobody's gonna get me to move to haebongchon.

I would pay 1.8 mil for the deposit and expect 2 mil returned at the end.

at any rate, always get and keep receipts.

Gwangjuboy · Joined: 08 Jul 2003 Location: England

The method by which Koreans rent out apartments is just crazy. It is the one thing about this country that really drives me mad. There are so many pitfalls, and the personal losses are steep when you consider the amounts we are talking about. If a landlord in Korea goes bankrupt he can avoid paying your deposit back to you. Of course, it is also difficult to move in Korea because most people in their early twenties don't have five or ten million won lying about. As somebody said; there are apartments that you can rent without putting down a deposit, but most landlords want a deposit. The monthly fees for the upkeep of the apartment or also a joke. If you live in a one room you typically pay ten thousand won a month. Considering everyone else in the block is paying the same, this could work out at two hundred thousand a month. And what do they do? They sweep the steps every two weeks.

lastat06513 · Posted: Thu Nov 17, 2005 2:19 am Post subject:

podjs · Joined: 18 Jun 2005

Thanks for all the advice.

I never understood why someone needs to put down so much money for an apartment. It seems the average person in Korea would have to save for a year or two or more before they can get there own place. Perhaps that's why so many still live with their parents in their 20's or 30's? It must be difficult for the poor or 'economically disadvantaged' to get enough money together for key money.

Also, I like Korea, but when it comes to contracts or negotiations (or money) there is always something fishy. It seems I can never get a straight answer from the people I'm negotiating with.