Key money in Korea: how much it is, and how to get your deposit back

How much is key money in Korea?

"Key money" is the English name for the refundable lease deposit, 보증금 (bojeunggeum). On a monthly-rent lease in Seoul it is generally ten to twenty times the monthly rent, so ₩6–12 million on ₩600,000 rent. You get it back when the lease ends, minus anything you still owe.

That is the short answer. The longer one matters more, because the deposit is usually the largest sum a foreigner hands over in Korea, and getting it back depends on a few steps taken months earlier. This guide covers the size of the deposit, why it is so large, how it is paid and returned, and what Korean law lets you do if a landlord does not pay, with rules as of October 2026.

What does "key money" mean in Korea?

It means the deposit the tenant pays the landlord at the start of a lease and gets back at the end. Unlike a fee, it is not spent: the landlord holds it as security for the whole lease.

The term covers two kinds of lease. The Seoul Metropolitan Government's housing guide uses "key money" for jeonse (전세), where the tenant pays one very large deposit and no monthly rent. Most foreigners sign wolse (월세, monthly rent) instead: a smaller deposit plus rent each month. Either way, the money is called 보증금 in the contract and is refundable.

How much deposit do you need in Seoul right now?

For a wolse lease, plan on ten to twenty months' rent. Averages run higher, because many tenants choose a larger deposit to lower their rent.

The last row explains why jeonse is rarely a newcomer's first lease: a jeonse deposit on a Seoul officetel is most of the property's value. For rent levels by home type and district, see our guide to how much rent is in Seoul.

Why is the deposit so high in Korea?

Because the deposit does two jobs: it secures the landlord against unpaid rent and damage, and it substitutes for part of the rent. More deposit means less rent, and the market prices that swap.

The Korea Real Estate Board measures the swap as the rent-conversion rate (전월세전환율, jeonwolse jeonhwanyul). For Seoul officetels it was 6.06% in June 2026, according to The Financial News. For example, at that rate an extra ₩10 million of deposit is worth about ₩600,000 a year, or ₩50,500 a month, in lower rent (₩10M × 6.06% ÷ 12).

When an existing deposit is converted into monthly rent, the law caps the rate. Article 7-2 of the Housing Lease Protection Act limits it to the lower of 10% a year or the Bank of Korea base rate plus 2 percentage points (Enforcement Decree, Article 9). The base rate has been 3.00% since August 27, 2026, so as of October 2026 the cap works out to 5% a year.

Many foreign residents also find large deposits hard to finance. An official at the Seoul Foreign Residents Center told The Korea Herald in September 2026 that many foreigners have difficulty getting loans, which pushes them toward monthly rentals.

How and when is the deposit paid?

Usually in two parts: about 10% when you sign (계약금, gyeyakgeum, the contract payment) and the rest (잔금, janggeum) on moving-in day.

Seoul's housing guide describes this 10% split as the norm. It also warns that the contract payment works as a cancellation deposit: if the tenant pulls out, it is not refunded, and if the landlord pulls out, the landlord pays back double. Before paying either part:

• Read the property registry (등기부등본) for mortgages and seizures — our renting guide shows how.
• Pay only into an account in the registered owner's name, and keep the transfer receipt.
• Check the registry again on the day you pay the balance.
• Make sure the contract states the deposit, the rent, the dates and who pays which bills.

When do you get your deposit back?

On the day the lease ends, in exchange for the keys. The deposit is returned in full minus unpaid rent, utilities or other amounts you owe under the contract.

The law treats the return and the hand-over as a swap. According to the government's Easy Law guide, the tenant may refuse to hand over the home until the deposit is repaid, and the landlord may refuse to repay until the home is handed over. Article 4(2) of the Housing Lease Protection Act adds that the lease is treated as continuing until the tenant has the deposit back.

What can be deducted? Seoul's guide names arrears such as unpaid rent and utilities. Easy Law adds that when a lease ends the tenant must restore the home to its original condition (원상회복, wonsang hoebok) before returning it, so damage beyond the condition agreed at the start can become a claim. Photos and a written condition list on move-in day are your best evidence.

One amount often goes the other way. In larger apartment complexes, the long-term repair reserve (장기수선충당금, janggi suseon chungdanggeum) is legally the owner's cost but is commonly billed to tenants with the maintenance fee; Easy Law says a tenant who paid it can claim it back from the owner when the lease ends. Ask the management office for a statement of what you paid.

How much notice do you need to give?

Tell the landlord at least two months before the lease ends if you are leaving. If neither side gives notice in time, the lease renews on the same terms.

Under Article 6 of the Housing Lease Protection Act, the landlord must give notice between six and two months before the end date, and the tenant at least two months before. Without notice, the lease is treated as renewed for two years. In that case Article 6-2 lets the tenant end it at any time, taking effect three months after the landlord receives notice. Give notice in writing — a text message the landlord replies to, or a formal letter — and keep a copy.

What protects your deposit if the landlord can't pay?

Your address report and a fixed date on the lease. Together they let you be repaid ahead of later creditors if the home is sold at auction.

Article 3-2 of the Act gives a tenant who has moved in, registered the address and obtained a fixed date (확정일자, hwakjeong ilja) the right to be paid from an auction ahead of lower-ranking creditors. For foreigners, the address report under the Immigration Act counts as that registration — the steps are in our main renting guide.

Smaller deposits get extra protection. As of October 2026, under Articles 10 and 11 of the Enforcement Decree, a Seoul tenant whose deposit is ₩165 million or less can recover up to ₩55 million ahead of even earlier mortgages, provided they moved in and registered before the auction was filed (Act, Article 8). The total for all such tenants cannot exceed half the property's value. These amounts have been amended several times, most recently in 2023, so ask a lawyer which figures apply to your building.

What if your landlord doesn't return the deposit?

Ask in writing first. If the lease has ended and you are still unpaid, apply for a lease registration order so you can move without losing priority, then use a payment order or a lawsuit to recover the money.

1. Lease registration order (임차권등기명령, imchagwon deunggi myeongnyeong). Under Article 3-3, after the lease has ended you can apply to the district court for the area where the home is. Once it is registered, you keep your priority even after moving out. Easy Law says it is available when the lease ended at expiry, by notice or by agreement, and the costs can be claimed from the landlord (Article 3-3(8)).
2. Payment order (지급명령, jigeup myeongnyeong). A written procedure at the court for the landlord's address, without a hearing. If the landlord does not object within two weeks of receiving it, it becomes final and can be enforced, according to Easy Law's deposit-recovery guide. It suits landlords who agree they owe the money.
3. Mediation or a lawsuit. If the landlord disputes the claim, the case goes to civil mediation or court. A deposit-return lawsuit can use the faster small-claims procedure even when the deposit is over ₩30 million (Article 13 of the Act).

Free help exists. The Seoul Global Center told The Korea Herald that most of its rental inquiries concern communicating with landlords or getting deposits back, and that it connects tenants with experts. For anything involving a court, speak to a lawyer.

How do you make move-out go smoothly?

Agree the return date and the deductions in writing a few weeks before you leave, and settle the final bills on the day.

• Send your notice at least two months before the end date and keep the reply.
• Ask the landlord to confirm the date and the bank transfer of the deposit in writing.
• Take final meter readings and settle gas, electricity, water and 관리비 (gwallibi, maintenance fee) up to your move-out date.
• Compare the home with your move-in photos; repair or agree any damage before the day.
• Ask the management office about any long-term repair reserve you paid.
• Keep your address registered until the deposit is in your account.

If the conversation with your landlord is in Korean, it helps to have it interpreted. Seoul Housing Help is an independent bilingual service in Seoul that interprets with Korean landlords and realtors; licensed agents handle any brokerage, and we take no commission from landlords. Our Move-Out & Deposit Return help covers the move-out inspection, final meter readings and a deposit return schedule agreed in writing — see prices, or start with a free 15-minute call. We don't give legal advice; for a dispute, a lawyer is the right person.

Sources (read October 25, 2026): Housing Lease Protection Act Articles 3-2, 3-3, 4, 6, 6-2, 7-2, 8 and 13, and its Enforcement Decree Articles 9–11 (law.go.kr); Easy Law guides on the end of a lease, deposit recovery, lease registration orders and the long-term repair reserve (easylaw.go.kr); Seoul Metropolitan Government, "Wolse/Jeonse" (english.seoul.go.kr); Bank of Korea base-rate history (bok.or.kr); The Korea Herald, September 30, 2026 (Korea Real Estate Board August data; Seoul Foreign Residents Center and Seoul Global Center); The Financial News, July 15, 2026 (Korea Real Estate Board Q2 officetel data). — This guide is general information, not legal advice. Seoul Housing Help is not a real-estate agency or law firm; licensed agents handle brokerage and a lawyer can advise on your contract.

Frequently asked questions

How much is key money in Korea?

For a monthly-rent (wolse) lease, the Seoul Metropolitan Government says the deposit is generally ten to twenty times the monthly rent — about ₩6–12 million on ₩600,000 rent. Korea Real Estate Board data put the average deposit for Seoul multifamily homes at a record ₩61.17 million in August 2026. Jeonse leases, with no monthly rent, need far larger deposits.

Do you get key money back in Korea?

Yes. The deposit is refundable when the lease ends, minus unpaid rent, utilities or other amounts you owe under the contract. Under the Housing Lease Protection Act, the lease is treated as continuing until the deposit is returned, and you can hand over the keys at the same time as you are repaid.

Why is the deposit so high in Korea?

The deposit is the landlord's security and, in many leases, partly replaces rent: the same flat can usually be let with a bigger deposit and lower rent, or the reverse. Korea Real Estate Board figures put Seoul's officetel rent-conversion rate at 6.06% in June 2026, which is roughly what an extra ₩10 million of deposit saves you in yearly rent.

What can I do if my landlord won't return my deposit?

Don't move out and give up your address registration first. Once the lease has ended, you can apply to the local district court for a lease registration order (임차권등기명령), which keeps your priority after you move, and then pursue a payment order (지급명령) or a deposit-return lawsuit. A lawyer can advise on your case, and the FAQ covers how we can interpret with your landlord.

How much of my deposit is protected if the house is auctioned?

As of October 2026, in Seoul a tenant whose deposit is ₩165 million or less can recover up to ₩55 million ahead of other secured creditors, under Articles 10 and 11 of the Housing Lease Protection Act's Enforcement Decree, capped at half the property's value. Above that, your priority depends on your address report and fixed date.