If you’ve house-hunted in Korea, you might’ve been shocked at how cheap the rent seems, especially if you’re coming from the Bay Area, LA, or New York.
Here’s why rent is still affordable in South Korea!
Quick Summary
- A one-bedroom apartment or officetel for $600 a month is really possible in Korea. According to the KOREA REAL ESTATE BOARD, the average monthly rent for officetels in the Seoul metropolitan area was 843,000 won ($609) in June 2025.
- Despite rising real estate prices in Korea, it’s possible because of Korean culture, unique rental systems, and government intervention.
Rent-Free Jeonse System
If you’re an expat, you’ve probably heard of Jeonse.
Jeonse is a housing system where tenants hand over a large lump-sum deposit (often 50% to 80% of the property’s value) and live there for two years with no monthly rent at all.
At the end of the lease, you get the entire deposit back. We even have a separate deposit insurance to make sure of it, just in case the landlord fails to return the deposit.
It works because landlords can take that money and invest it elsewhere.
It’s kind of like a long-term loan from tenant to landlord.
Since many Koreans choose Jeonse instead of paying rent, it reduces the demand for monthly rentals.
This is slowly changing now though, as more landlords prefer to collect monthly rent.
Still, many young Koreans choose Jeonse when moving into their newlywed home after leaving their parents’ place.
[Check this out if you’re curious why so many Koreans live with their parents!]
Rent Over $1,000 Feels Ridiculous
Even when Koreans DO pay monthly rent (called Wolse), we usually expect it to be much lower than what’s normal in the U.S.
In fact, many Koreans feel that 1,000,000 won (around $723) is already too much, especially outside of Seoul.
You can still find decent apartments or brand-new officetels in smaller cities (that are still big and crowded) for 400,000 won to 700,000 won ($289 to $506) per month.
Sometimes even less if you’re flexible on size or location.
My friend in Masan owns an old building and charges $180 for a studio to his tenants.
Culturally, most Koreans don’t want rent to eat up a huge chunk of our monthly income.
Whenever I get a Wolse contract, my parents think it’s a waste of money, no matter how much I pay a month.
What I like about Wolse is how flexible it is, since it’s usually a one-year deal.
Government Rules Keep Rent in Check
Another major reason Korean rent hasn’t spiked as dramatically as in other countries is due to a government policy.
It’s called the Jeonwolse Sanghanje.
Amended in July 2020, this law is part of the Housing Lease Protection Act, and it puts a limit on how much a landlord can increase rent.
So basically,
- Landlords can only raise rent up to 5% when a lease is renewed.
- Tenants have the right to renew the lease once for another 2 years (total of 4 years of stable housing without having to move).
- However, it only applies to current tenants. If a new tenant moves in, the landlord can set any price they want.
Article 7 (Requests for Increase or Decrease of Rents)
Housing Lease Protection Act
(1) If the stipulated rent or deposit becomes unreasonable…, the party concerned may request any increase or decrease thereof prospectively. In such cases, no request for an increase shall be made within one year after a lease contract is concluded or the rent or deposit agreed upon is increased.
(2) An increase requested under paragraph (1) shall not exceed 1/20 of the agreed rent or deposit.
For example, if your Jeonse deposit is 100,000,000 won ($72,374) and you choose to renew, the landlord can only raise it to 105,000,000 (about $75,992).
The rule for Wolse is a bit more complicated because the landlord can increase both the deposit and rent by 5% each.
But still, this rule keeps things pretty reasonable.
So, why is rent still relatively cheap in Korea?
It’s because of the Jeonse system, a culture that values modest rent costs, and policies like the 5% increase cap.
Korean housing prices overall may be rising, but when it comes to monthly rent, especially outside of Seoul, things are still surprisingly affordable compared to the States.
If you’re thinking about moving to Korea, it’s one of the most budget-friendly parts of your monthly expenses.
