Korean Housing Terms Every International Student Should Know (Part 4: Costs)
Korean Housing Terms Every International Student Should Know (Part 4: Costs)
A FindHouse Korea Settling-In Guide
In Part 1, Part 2, and Part 3, we covered rental types, contract paperwork, and tenant protections. Now let's talk about money — specifically, the extra costs and payment steps that catch new tenants off guard.
Knowing these terms means no surprise bills, and no confusion about when to pay what.
1. 중개수수료 (Jung-gae-sususryo) — Broker's Commission ("Bokbi")
In one line: The fee you pay a licensed real estate agent for helping you find and sign for a property — commonly nicknamed "Bokbi (복비)" in everyday conversation.
Why it matters: This fee is set by law as a capped percentage of your deposit and rent (converted into one combined figure) — it's not something an agent can charge however much they want. Both the landlord and the tenant typically pay this fee separately to the same agent.
Example:
For a mid-range Wolse contract, the commission is usually well under 500,000 KRW — always ask your agent to show you the official rate table before paying.
Related terms: Lease Contract, Jeonwolse Conversion Rate
2. 전월세전환율 (Jeon-wolse-jeonhwan-yul) — Jeonse-to-Wolse Conversion Rate
In one line: The interest rate used to convert a deposit amount into an equivalent monthly rent — useful when a landlord proposes lowering your deposit in exchange for higher rent.
Why it matters: If a landlord says "let's lower the deposit and raise the rent a bit," this rate tells you whether the new monthly rent is fair.
Example:
Lowering your deposit by ₩5,000,000, at a 4.5% annual rate, should raise your monthly rent by roughly ₩18,750 — not more.
Related terms: Jeonse, Wolse, Banjeonse
3. 잔금 (Janggeum) — Final Balance Payment
In one line: The remaining amount you pay on move-in day, after an initial smaller payment (see Gagyeyakgeum below) at signing.
Why it matters: Most contracts are split into two payments: a small amount when you sign, and the 잔금 — the rest — on the day you actually move in. Missing this date, or not having the funds ready, can delay your move-in or even risk the deal.
Related terms: Gagyeyakgeum, Lease Contract
4. 가계약금 (Ga-gyeyak-geum) — Preliminary Deposit ("Holding Fee")
In one line: A small, non-refundable payment made to "hold" a property before the full contract is signed — showing the landlord you're serious.
Why it matters: This is usually a small fraction of the total deposit (sometimes just a few hundred thousand KRW), paid before the official lease signing. Be careful: in most cases, this amount is not refundable if you change your mind, so only pay it once you're confident about the property.
Example:
You like an apartment and pay a ₩500,000 가계약금 to hold it for 3 days while you arrange the rest of the deposit. If you cancel during that period, you may not get the ₩500,000 back.
Related terms: Janggeum, Deposit
Quick Recap
Term Korean When you pay it Broker's Commission 중개수수료 (복비) At contract signing, to your agent Jeonse-to-Wolse Conversion Rate 전월세전환율 Used to calculate, not paid directly Final Balance Payment 잔금 On move-in day Preliminary Deposit 가계약금 Before signing, to hold the property
The Golden Rule
There are two payment moments to plan your budget around: a small holding payment (가계약금) early on, and the final balance (잔금) on move-in day. Know both dates and amounts in advance — and always ask for the official commission rate table before paying 복비.
FindHouse Korea helps international students find verified housing in Korea — in your own language, without the confusion.