Korean Job Discussion Forums

[mikekim]

To get an apartment I pay the landlord about 10 million won so that I can rent his apartment. I pay 300-700k for rent a month. When I want to leave I get the 10 million back instantly?

[shaunew]

If they have it and that is a big if. You will have to find someone to rent the apartment from you. They will pay the 10 million won which the landlord will turn around and give you. If there are no renters. Then either he gets a loan from the bank or you don't get your money back. It is a beautiful system Korea sparkling. My MIL has two apartments and never has the key money she always blows it by the time the tenants move out.

[schwa]

You should get the deposit money back instantly if you have fulfilled the lease period (& checked beforehand that the owner is solvent) but if you decide to leave earlier you are on the hook for finding a new tenant to cough up the key money.

[thematrixiam]

what's the standard key deposit range?

I'm thinking of saving up this year to rent out a place next year.

[mikekim]

[Ya-ta Boy]

Technically, the landlord is supposed to deposit the key money and have it on hand. This is technically...

There is some standard formula for key money/rent...the more key money, the less rent. I don't know what it is.

Ask the realtor about the landlord's veracity and past history. They will be able to tell you if that particular landlord is honest and reliable or not.

It is possible to get screwed, BUT the whole country uses the system and has for years and years...so it does work the way it is supposed to most of the time.

[Scotticus]

[Ya-ta Boy]

[newton kabiddles]

[schwa]

The system & rates have been quite standardized for some years in my city (dont know how it would compare to Seoul though).

10 million down & 300-400k a month gets a 25 to 30-pyeong apartment (2 or 3 bedrooms) in a not-new but not too old complex. Typically the first lease is for 2 years then goes to annual if you want to remain.

The same type of places can be had for deposit only (30 to 40 million won) but the choices are fewer -- many owners prefer the monthly income.

I once put down 10 million on a jutaek (a big suite in a 3-family bldg) & paid 300k/mo & had no problem getting my key money back when I left 3 years later. You must check the owner's financial status (at city hall or the local gu-office) before signing though, or if you go through a real estate agent they do it for you. Definite red flags are liens on the unit or back taxes owing.

I need to move in august. This weekend I'm thinking over taking a quite new whole house (with a bit of a yard & a rooftop overlooking Sokcho harbor) -- 35 million down, nothing monthly. My job will chip in 300k a month -- the equivalent of 10% interest on my deposit. The agent & owner seem solid.

[Scotticus]

[Lunar Groove Gardener]

A Korean friend cannot currently move to a better apartment because the "jeonsae" has been spent by the debt laden landlord. Meanwhile the place is falling apart from neglect so a new tenant is not willing to lay out the big cash...and the landlord could still grab up any new deposit dishonestly..."sue me", "get in line" comes to mind.

I've heard that there is a notarization process by which one can confirm the agreement and amount to at least get a legal document.

For the opportunist landlord a foreign deposit represents a clear potential windfall. Tenant is going home, landlord is conveniently gone daddy gone that month.
An honest landlord can go into debt during your stay due to any number of misfortunes, requiring legal action, time, money and tenacity from abroad to regain your deposit money.

Frankly, in any country a $10,000 deposit would fill the courts with people who had been cheated out of their money.
Can Korea somehow surpass that fairly predictable outcome with its high standard of fair business and faithfully enforced legal repercussions? Or do you suspect as do I, that their "courts" are presently filled to the gills with cases related to malfeasance in this area and backlogged ad infinitum?

Consider yourself "Sparkled".

[nautilus]

Be very, very, very careful about handing money to a korean.... getting money from them, even if its your own, is like pulling teeth. They will generally try every trick in the book to avoid their obligations. Non-payment of debt is standard practise here, "ownership is 9 10ths of the law".

if you're going to do it...be sure to get every possible bit of security you can off him. Get the agreement witnessed by several korean and foreigner friends, for example. You may even need to get the local korean gangsters to see the transaction so you can cut them a share later when idiot landlord claims to have spent it all.

[Scotticus]

[freshking]