Korean Job Discussion Forums

[n�fara]

So, let's say you are renting a place. Instead of paying cheonsei, the landlord instead asks for a 1 million won deposit and woelse, which you would pay upfront for the whole year.

I have read that you can have the prospective landlord investigated to see if the property is mortgaged or if they have other debts. This can be either done through the real estate agent or another agency.

But, if in the unfortunate case your landlord has some hidden debts and goes bankrupt during the year that you're renting, what happens?

I did do a search on this, and:

[Ginormousaurus]

Are they asking you to pay a full year's rent in advance? I've never heard of this before. Woelse means paying the rent month by month along with a one time deposit.

Sorry I can't really be of much help in answering your question. I'm just curious about why they would want you to pay for whole year's rent in advance.

[n�fara]

Yes, they are asking for the full year's rent upfront.
But a few other places I've seen (from other realtors) have also asked for the upfront payment as well. I've asked around, and have been told it's normal. But admittedly I'm a bit new at this, so I take everything with a grain of salt.
Thanks for your comment, though. It's good to hear other people's perspectives.

[FMPJ]

Weolsae isn't exactly "rent," it's a deposit and is usually translated as "key money."

When I did mine I went and registered it at the district office, and I've been told by plenty of people that that's safe enough. That said, if I'd sensed even a hint of shadiness I wouldn't have given the dude my money, of course.

[victorology]

It's quite odd that they'd ask for the full rent upfront.

Weolsae usually comes with a large deposit (that you get back when you move out) and monthly rental payments.

[n�fara]

I thought "key money" was cheonse, when you pay a large lump sum up front and either pay a montly fee in addition to, or no monthly pay at all (if your cheonse deposit was large enough). After your lease is finished, you get that lump sum/deposit back.

And Woelse is where you pay a monthly rent only (or perhaps with a small deposit anywhere from 500,000 to a few million Won) .

Or is it the other way around?

At the moment I cannot afford tens of millions of won for cheonse, so I was going to go with woelse. They asked for the rent upfront, which I would normally think to be sketchy, but seems to be commonplace (or am I surrounded by people out to get me? )

[Ginormousaurus]

Cheonse is when you pay a very large deposit and then no monthly payments. You get the deposit back at the end of your contract.

Woelse is when you pay rent monthly and also a deposit at the the beginning. The deposit is usually between 1 and 10 million won.

[bangbayed]

You're partly right. There are two systems in Korea (if you're not buying):

Woelse is a system where you put down a deposit (Bojeungeum / 보증금 /key money) and on top of that pay a monthly rent. Generally, the higher the deposit, the lower your rent. I have a two room I only pay 300,000 a month for but I put down 20 million for deposit. I've seen ads for deposits as high as 50 million. You get your deposit back when you leave.

If you see a realtor's ad like this:

월세
2방
200 / 40

This means a 2 room apartment for 20 million won deposit at 400,000 a month rent.



Cheonse is a system where you put down a huge deposit (typically over 100 million won, but one rooms can be had for 50-60 depending on the area) and don't pay any monthly rent. You get your deposit back when you leave.


If you see a realtor's ad like this:

천세
2방
1억

This means a 2 room apartment for 100 million won deposit.

And according to various people I asked, the government insures your deposit up until a certain amount (something like 100-200 million - something most of us don't have to worry about).

[schwa]

Much confusion on this thread!

Cheonsae is deposit, weolsae is rent. All-cheonsae was common not long ago, not so much anymore. Cheonsae plus wolsae rules the majority of leases nowadays. All-wolsae is rare.

I cant answer the OP's question definitively but in my experience (several homes) I've never heard of paying the rent up-front for a year. Sounds dodgy.

There is a govt registration process (mentioned above) that does offer a degree of protection for your cheonsae -- up to 20 million won depending on location -- but I doubt it extends to this weolsae scheme.

Be sure to do due diligence on your landlord's financial status at city hall or your local dong office. They have an open record of liens, back taxes, & most bad debts. Its customary to check, or have a real estate agent do so, before signing anything.

Best luck.

[PeteJB]

Ahhh, daydreaming of 전세 again...

[n�fara]

Thanks bangbayed and Ginormousaurus.

That clears up the woelse/cheonse for me. I hadn't heard the term bojeungeum / 보증금 before. It's always good to learn something new everyday

However, would it be entirely uncommon to pay the "monthly rent" all at once in the beginning of the lease (plus a 1 million deposit) ?
I have looked at a few places, at this seemed to be standard, although the other places I've looked at had a significantly higher deposit than this house.

[n�fara]

Also, thanks schwa.

It's strange that all the Koreans from whom I have asked help have not had any issues with paying rent upfront. I am wondering if it is common to this area, or they have no idea themselves.

[bangbayed]

[Typhoon]

Paying a full years rent up front is unusual, but it does happen. When people pay a full year up front they are usually given a substantial discount on the rent because they are doing the landlord a favor.

[n�fara]

bangbayed,

I probably should have mentioned in the OP that I live on Jeju-do (which could mean renting schemes differ significantly from the way things are done on the mainland, I'm not sure).

The place that I am looking at is a house in a slightly older area on the island. I have heard that many people are moving away from houses and are opting for apartments, for the additional daytime security when everyone is at work. This area is no known for having high crime (quite the opposite) but of course that could still be an issue.

As for size, it's a 3-room house, so quite large (at least, in comparison to some of the studios/bachelors places I've also seen). With a million won deposit, they would also like 4.5 for the year as rent upfront. That works out to be about 375,000 Won a month. Utilities extra. So, still pretty cheap.

However, it is an older house, so I know it will not be nearly as efficient as a new apartment. The neighbourhood is neither posh nor a ghetto, but it would not be on any magazine covers as model for "Beautiful Korean Neighbourhoods." I like space, and that is what interested me about this place.

In comparison I could get a beautiful place on the 2nd floor of a house (duplex?) with hardwood floors and 3 bedrooms for 7 million deposit and 5 million in rent (paid upfront, utilities extra) in a slightly newer part of the same area.