Korean Job Discussion Forums

[Mashimaro]

found a great new place and need to move ASAP, but frankly my "don't trust a korean" sensors are kicking into overdrive and I'm scared I won't see my key money again. (not trying to be inciteful here, many koreans themselves have warned me to be very careful.)

Any advice on covering my butt as much as possible?

[itaewonguy]

[JongnoGuru]

There ought to be a sticky on this. That is to say, "There really needs to be / I wouldn't be surprised if there already is" a sticky on this.

I'm sure I've seen explanations on the Net (in Hangul of course, but a few in English & Konglish, too) of the "paperwork" Itaewonguy refers to.

Mash, you're nervous about this and you'd be odd if you weren't. It matters not a whit how long someone has lived in Korea, nor how much or little Korean they speak -- the first time anyone hands over a huge pile of cash to a stranger as chonsei, it's only natural get a bit scared. Your realtor must know all about it and be able to help you/direct you to get what you need, the standard guarantees & official-looking & duly-stamped thingies that clarify and safeguard your interests.

They're important and good to have, but they can't magically conjure up your money from the ether and place it in your landlord's hand on the stipulated date if he's gone and blown it all on hard liquour and soft squid. Where foreigners (more than Koreans) will run into problems is the timing of repayment, because foreigners often plan to or have to leave the country when their work (and subsequently) housing contracts expire. Waiting around for the landlord to find the money or find a new tenant isn't so easy for a single foreigner who's starting grad school or a job back home as it is for a Korean family who will be living in Korea another few centuries.

What to do? My advice is, even with all the precautions & paperwork done, one should always make an effort to go with a place that's attractively priced and in a high-demand neighbourhood, because no matter what the law says, what those paper guarantees say, what anyone else on Dave's may say -- the very best "chonsei insurance" a renter can have is to be living in a place so damn sought-after that there'll be a mob of would-be tenants waiting with cash in hand the day you move out.

[Ya-ta Boy]

Good advice once again from the Guru.

[chotaerang]

Specifically, the paperwork you need is the signed contract and a stamp that the local district office puts on it called the Ȯ������ (and my spelling might be off on that). That stamp is really important because that is what gives you the right to take your money out of whoever owns the house in the unlikely event that it got sold without your knowing.

Having introduced that frightening idea, I love key money - it saved me heaps on rent over the past 8 years.

[nautilus]

Every fibre of my being, every gut instinct developed after being here a couple years..every facet of blatant common sense..SCREAMS... Do not trust a korean with your money, in any shape or form. You may as well throw it away. At least expect a battle to get it all back- costing you time, and..more money..:

[Gwangjuboy]

Key money is a great system if you happen to have a few thousand pound in the bank. However, if you are broke it places heavy restrictions on your ability to move. I wanted to move but I simply don't have the key money. In order to move I would have to use my credit card and accrue a large amount of interest, while ironically the landlord is making money from the interest. *uck that noise.

[RACETRAITOR]

There are sites online where you can check to see if your landlord is in debt. Also, it's vital that you check again the day you move in to the new place, because sometimes a landlord will take out a loan in order to hide from a previous debt, and then pay back the loan once you've paid the key money and move in.

I don't know where to check this; my girlfriend did it for me.

[Thunndarr]

[VanIslander]

Here's how I see it...

Pay 10 million key money if you plan to stay there AT LEAST three years.

That way, worst case scenario (shhh, don't tell anyone this), if you can't get your money back (even though you should use the full extent of the law to do so), you'll AT MOST have lost an average of 300,000 per month... the going rental rate.

But to pay 10 mill for only a year? or two? .... no thanks, too much of a potential loss.

[Thunndarr]

Yeah, but rent-free accomodation usually costs 20 million and up. 10 million is usually only good for rent reduction. (In Seoul, afaik.)

[own_king]

The sad thing is technically asking for key money is illegal, but try telling the landlord that and see if you can get a place without it. Luckily, I've always had my school pay for the key money, rent, etc or I don't come.

[rainyqueen]

I had never heard that it was illegal, although I'm not saying it isn't.

Although you can sign contracts up the yinyang, I'd still say you are at a big risk. From what I've heard, the first thing the landlord does when he/she gets your money - is spend it. It's gone. Yes, sometimes they invest it, which is a risk in itself. But contract or no contract - if there is no money available, they ain't giving it back. Good words from Guru about signing in a place where tenants will get in there quick when you leave. That way they've got money coming in right away.


What I did was make an offer. They told me that the reason for key money was to secure that I don't run off and leave them without tenants - so I offered to pay my first year's rent completely. I paid for the full year (about 5 million) and I never had to worry about paying my rent on time, nor do I have to worry about seeing that money again. Won't work in every scenario - but it did in mine. And at my last place, I got the key money back no problem, so you never know.

[Hollywoodaction]