South Korea's 'Jeonse' Housing Declines, People Turn to Monthly Rentals Facing High Rents
In Seoul's rental market, South Korea's unique 'Jeonse' system is declining due to surging deposits, leading residents to switch to monthly rentals with high costs. This trend is exacerbated by a shortage of new apartments and an increase in 'Jeonse fraud'.
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- 📰 Published: May 9, 2026 at 15:40
- 🔍 Collected: May 9, 2026 at 16:01 (21 min after Published)
- 🤖 AI Analyzed: May 9, 2026 at 19:27 (3h 26m after Collected)
Central News Agency
(Central News Agency reporter Yang Chi-fang, Seoul, May 9th) The burden on ordinary residents in the Seoul rental market is increasing day by day. Among them, South Korea's unique "Jeonse" housing system is gradually declining in the housing market due to reasons such as soaring renewal deposits. Tenants are forced to turn to the monthly rental market, but then face high monthly rents.
Korean media "Maeil Business Newspaper" reported that the Seoul rental market is rapidly entering a cold winter, including a decrease in Jeonse properties, soaring renewal deposits, and monthly rental burdens reaching historical high levels. Recently, there have even been cases where tenants who have already used the "contract renewal request right" (tenants have the right to request a renewal once) are required to pay additional deposits when re-signing.
According to the South Korean Ministry of Land, Infrastructure and Transport's real transaction public disclosure system, from January to April this year, among the 9096 Jeonse renewals for apartments in Seoul where the renewal request right was not used, 85.9% saw an increase in deposits, with an average increase of 47.93 million Korean Won, close to 50 million Korean Won (approximately NT$1.11 million); the average increase for cases declared in May even rose to 52.29 million Korean Won.
In contrast, for contracts that used the renewal request right during the same period, the average increase was only 28.76 million Korean Won. The burden on tenants differs by approximately 20 million Korean Won (approximately NT$440,000) depending on whether the renewal right is used. Tenants who can no longer be protected by the renewal right will be directly exposed to market prices.
According to the report, tenants who cannot afford the surging renewal deposits for Jeonse are gradually moving to the monthly rental market. Data from the Ministry of Land, Infrastructure and Transport's real transaction system shows that in the first quarter of this year, among the 14 administrative districts north of the Han River, new contracts for monthly rents of 3 million Korean Won (approximately NT$66,000) or more increased by 53.4% compared to the same period last year.
According to statistics from Statistics Korea, the average monthly salary for regular employees in Seoul last year was 4.55 million Korean Won (approximately NT$101,000), meaning that a monthly rent of 3 million Korean Won is already equivalent to two-thirds of an ordinary office worker's salary.
Some analyses point out that the supply of newly built apartments is insufficient, and both Jeonse and monthly rental properties are also in short supply. A real estate agent in Seodaemun District stated, "The Jeonse and monthly rental properties available for relocation are very scarce, so Jeonse prices are skyrocketing after the renewal right expires, following market prices." He also pointed out, "In this unstable atmosphere, tenants can only accept high monthly rents."
"Jeonse" is a special rental system in South Korea, where tenants pay a large lump-sum deposit to the landlord when signing the contract, and do not need to pay monthly rent during the occupancy period. The landlord must return the full deposit at the end of the contract. Landlords usually use this money for investment, which is an important mode of operation in the South Korean housing market. However, in recent years, "Jeonse fraud" has increased, and some landlords are unable to return deposits, causing the risks of the system to gradually emerge. (Editor: Chen Hui-ping) 1150509
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(Central News Agency reporter Yang Chi-fang, Seoul, May 9th) The burden on ordinary residents in the Seoul rental market is increasing day by day. Among them, South Korea's unique "Jeonse" housing system is gradually declining in the housing market due to reasons such as soaring renewal deposits. Tenants are forced to turn to the monthly rental market, but then face high monthly rents.
Korean media "Maeil Business Newspaper" reported that the Seoul rental market is rapidly entering a cold winter, including a decrease in Jeonse properties, soaring renewal deposits, and monthly rental burdens reaching historical high levels. Recently, there have even been cases where tenants who have already used the "contract renewal request right" (tenants have the right to request a renewal once) are required to pay additional deposits when re-signing.
According to the South Korean Ministry of Land, Infrastructure and Transport's real transaction public disclosure system, from January to April this year, among the 9096 Jeonse renewals for apartments in Seoul where the renewal request right was not used, 85.9% saw an increase in deposits, with an average increase of 47.93 million Korean Won, close to 50 million Korean Won (approximately NT$1.11 million); the average increase for cases declared in May even rose to 52.29 million Korean Won.
In contrast, for contracts that used the renewal request right during the same period, the average increase was only 28.76 million Korean Won. The burden on tenants differs by approximately 20 million Korean Won (approximately NT$440,000) depending on whether the renewal right is used. Tenants who can no longer be protected by the renewal right will be directly exposed to market prices.
According to the report, tenants who cannot afford the surging renewal deposits for Jeonse are gradually moving to the monthly rental market. Data from the Ministry of Land, Infrastructure and Transport's real transaction system shows that in the first quarter of this year, among the 14 administrative districts north of the Han River, new contracts for monthly rents of 3 million Korean Won (approximately NT$66,000) or more increased by 53.4% compared to the same period last year.
According to statistics from Statistics Korea, the average monthly salary for regular employees in Seoul last year was 4.55 million Korean Won (approximately NT$101,000), meaning that a monthly rent of 3 million Korean Won is already equivalent to two-thirds of an ordinary office worker's salary.
Some analyses point out that the supply of newly built apartments is insufficient, and both Jeonse and monthly rental properties are also in short supply. A real estate agent in Seodaemun District stated, "The Jeonse and monthly rental properties available for relocation are very scarce, so Jeonse prices are skyrocketing after the renewal right expires, following market prices." He also pointed out, "In this unstable atmosphere, tenants can only accept high monthly rents."
"Jeonse" is a special rental system in South Korea, where tenants pay a large lump-sum deposit to the landlord when signing the contract, and do not need to pay monthly rent during the occupancy period. The landlord must return the full deposit at the end of the contract. Landlords usually use this money for investment, which is an important mode of operation in the South Korean housing market. However, in recent years, "Jeonse fraud" has increased, and some landlords are unable to return deposits, causing the risks of the system to gradually emerge. (Editor: Chen Hui-ping) 1150509
Choose to stand with facts, every sponsorship you make is a force for protecting press freedom.
Download the Central News Agency's "Firsthand News" APP to stay updated with the latest news.
No text, images, or audio from this website may be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.