Korean Job Discussion Forums

[hamilto8]

Hello all,

I have a question in regards to renting an apartment in South Korea. I have plenty of experience renting apartments in China and found the process to be fairly smooth. However, I am now in the middle of trying to seek work in Korea.

I was talking to a recruiter recently, and she asked me if I would prefer a housing stipend or school provided housing. I said I would prefer a stipend, since that is the route I would typically go in China. But the recruiter stressed that, since I am a foreigner in Korea, I would need to put down a deposit of around $10,000 USD. You read that right, $10k USD. So, she argued, it would be much better for me to go with the school provided housing.

Now, to me, this sounds absurd. Deposit in China is usually one or two month's worth of rent, not some exorbitant fee like that. Now, given the ludicrously high number, I'm inclined to believe the recruiter is just lying to me. But I really don't have any experience renting in South Korea, so I can't say for sure.

What's the deal here?

[PRagic]

It'll depend on the neighborhood and the size of the unit you'll be renting. If you live in Itaewon, you can get away with anywhere between 1 and 5 million won down, and then 500,000-1.0 million+ a month in rent. Itaewon is comparatively affordable, landlords have a lot of experience dealing with foreigners, and a load of expats do most of thier socializing there, anyway.

That's probably why Itaewon (and Noksapyung Station vicinity) are popular places to crash.

If you're in Gangnam, then, yes, you'll need to put down 10 million or more for a deposit, even on a one room place.

[denverdeath]

Yeah, what he said.

You can rent places monthly, but those places arent too common here.

You could buy a place outright, but 10Gs aint gonna actually get you anything.

Or, you can put down key money. Huge key money usually equals no monthly rent. Less key money will equal more rent money.

Think of what the recruiter called "deposit" more as a "refundable deposit". Then you use that monthly housing allowance to either pay, or more likely lower, your monthly rent.

Most people who begin working here dont have 10 grand kicking about, so they usually take the provided housing. Ask to see the provided housing and whether you have to have a roommate. Some is awful, some is great. It all depends on the company, or even the branch of a company, you work for.

But, yeah, a 10mil won refundable deposit will not get you a palace with a garden and swimming pool(10k monthly wouldnt either although it would get you a spectacular apartment in a great part of town - those places are usually got by people who dont teach english), but it could get you a small, liveable place.

[PRagic]

+1. I worked for a publishing company back in the mid 90s. They rented me a 1 room (in Korea, that's literally one room, not a living room, kitchen, and one bedroom). That was in Gangnam. It was 10 million down and 1 million a month in rent. I was single and the location was convenient, so it worked.

I can't imagine things have gotten cheaper there. I remember a buddy trying to find a place in the Hapjeong Station area, and this was some time ago. He couldn't find anything decent enough for his family with a 10 million deposit and 1.5-2.0 million a month. At the time, my wife and I were in the high rise down the street from Hongdae's main gate. The full chunsae there was about 350 million. Think it's probably double that now. Things have gotten nuts.

So if you don't have chunk to dedicate to a down payment, and you don't have a lot to blow on rent (the 300 they provide as an allowance is a farce, but sadly standard....since the 1990s), you can find something crappy in an inconvenient neighborhood (read: multiple subway transfers or bus access only), or you can head to Itaewon.

[tophatcat]

$10,000 (10 million won) deposit is chump change in Korea.

10 million won deposit + 1 million won monthly will get something basic. But don't expect it to be in a prime location.

[PRagic]

exactly, unless you're in an inconvenient location and/or a miserable dwelling. or in the Twon.

[tophatcat]

You need to also consider a maintenance fee. This is usually the responsibility of the occupant of the apartment. This may be as little as 50,000 WON a month for a 1 room villa. The sky is the limit on bigger places.

[jason85]

You could rent a gosiwon for around 200,000 per month without any key money. I did this before around the Seoul National University area. The facilities in this sense are extremely basic, it would be a single room, and the bathroom would be shared facilities.

[Lazio]

[tophatcat]

[Kiki81]

The deposit is your rent for the whole year plus down payment which you should get back once you leave and don't break anything. So, if you pay 10,000,000 won, either you wont have rent every month, or it will be very low. This is true for many officetels which are little studio apartments that are all over the city. They mostly go for around 350,000 - 500,000 won a month. So, the 10,000,000 would cover you for the whole year.

I wouldn't stay at a goshiwon for a year If I were you. It's basically a tiny room with an even tinier bathroom. Also, if you have a girlfriend or boyfriend you can't have them over because the girls and boys dorms are separated.

[tophatcat]

A 10,000,000 won deposit + 500,000 won per month for a room in an Officetel is a norm.

A 10,000,000 won deposit, only, most likely isn't going to get you didly squat.

[PRagic]

Don't know where Kiki got that info. The 10 million is simply a deposit, and it doesn't 'cover you' for anything unless you're a deadbeat and stop paying rent, at which time they will start dipping into it. Yeah, I'll side with tophatcat there.

You pay your 'deposit', whick is 'bojeongum' say 10 million won, and THEN there is rent on top of that, PLUS utilities and usually some maintenance fee. Depends on the property how much those will be. SOME landlords will allow you to pay more 'deposit' and therefore less monthly rent, but none that I know of simply deduct rent from your 'deposit' until it runs out.

You might be able to negotiate that as you near the end of a contract term, but they more than likely won't go for it. Why? Because the incoming person usually pays your outgoing return of deposit. The landlords don't like to rock the boat. If the incoming person is paying a higher deposit, then you'll get your deposit back and the landlord will pocket the difference.

Now, if you want to pay 'jeonsay', which is the TOTAL upfront, lump sum payment IN LIEU of rent, that's another thing. Those deals are getting harder to find, but they're around, particularly for those who aren't too picky and/or don't need a lot of space. We have a friend in one now: 120 million won jeonsay for a small, subpar '2 room' way out on the loop on line 6. It's cold in the winter, hot in the summer, and, to keep it short, sucks.

Jeonsay for nicer places or in apartments has gotten nuts (up to 80%or more of the actual market value of the place), and I know VERY few people here short term who can, or would want to, plunk down 300-700+ million won for those. Add to this the fact that the reason you're getting a jeonsay is that the owner probably can't afford the place to begin with!

Therefore, you can only get your jeonsay back and move out when the next person buys in. If you stay until the end of your contract term, then it's the responsibility of the landlord to find a new tenant or they're supposedly on the hook for paying you back. If, for whatever reason, you want to move before the expriration of your contract, YOU need to get the place on the market and pay the realtor fees to find a new tenant. Joy.

You have to be VERY careful when you pay jeonsay to make sure there are no loans against the building. You should do that when renting ANY place in Korea, though. If the building goes into foreclosure, it's first in, first out. The bank gets paid, then the first person who rented (in a multi-unit building or home), etc. Very easy to lose your jeonsay or your bojeongum that way, and it DOES happen.