Korean Job Discussion Forums

[PeteJB]

Why is the Key Money so crazily high in Korea? I've seen $5000 Key Money for a box studio apartment. That's ridiculous!

Any pointers for where to find the cheaper accomodation in Korea? Apartment websites are good, but the key money is killing...

[Typhoon]

A lot of key money is high because you are not paying monthly rent. My key money is 90 000 000. I don't pay rent. My friends is 5 000 000. He pays 650 000 a month on top of the 5 000 000. It is a different system.

[Squid]

3 systems exist, each giving the property owner income:

1. "Chonsae." This a high deposit amount from which the landlord commonly will take the interest on a term deposit at the bank. You don't pay rent per-se but you don't get the interest, or the use of the money, that they get. Usaullly a 2 year fixed term.

2. "Wolsae." This is a lower deposit amount, but you then pay a sum every month. Usuallly a minimum 1 year fixed term.

3. Month to month: Some realtors have apartments available on western style lease arrangements. This system will see you pay a higher monthly amount than the Wolsae but with a small or no deposit.


Each system basically gives the landlord a return based on the term of the contract and the income they're willing to accept. Chonsae being the lower risk, lower return option, month to month the higher risk, higher reward.

Chonsae is the way to go from the tenants' view because the lost interest is a usually a far lesser amount than the monthly payments under either of the other systems.

Then you buy.

Happy letting.

[PeteJB]

So short term leases, you don't have to move out of after the end of the term? Also, I've noticed some have utility costs included in the monthly rent. How common is this?

[Freakstar]

If I put down 10 million won in key money and want to pay about 500k - 700k in rent per month, what kind of place could I expect to get in Gangnam? How many pyung? Thanks.

[VirginIslander]

My key money is 800,000 for an 18 pyeong apartment at 400,000 a month. I got lucky but I would like to live where Typoon's 90,000,000 got him.

[Freakstar]

[PeteJB]

I've also seen some really nice looking places for rent in Gangnam!! Modern studio apartments for such a good value.

800,000 / 400,000 ? Wow! Where did you find that? I know NiceRent, NearSubway, EdenReality, SeoulApartments - Any there any other websites?

[Beej]

[Typhoon]

What 90 000 000 gets you is not that great really. But it is better than my 20 000 00 and 400 000 a month got me. Hopefully I can buy next time and avoid the Chunsae.