What’s the Real Cost of Renting in Korea?

Hi there,

So you found an apartment in Seoul that seems perfect. It’s in a trendy area, fits your budget, and looks great in photos.

But then you realize:

• The monthly management fee is 150,000 KRW

• Internet and utilities aren’t included

• The agent is asking for a separate fee

• There’s a deposit of 10 to 50 million KRW

Welcome to the Korean housing system, where the price you see is rarely the price you pay.

In today’s newsletter, we break down what it really costs to rent a home in Korea and how to budget with confidence.

1. Security Deposit (보증금): What You Didn’t Expect

In most countries, deposits are 1-2 months of rent. In Korea, it’s often 10- 100x that. Even a tiny one-room studio can ask for 5 to 20 million KRW upfront.

👉 Tip: A higher deposit can sometimes lower your monthly rent, but it’s not always worth it unless you plan to stay long-term.

2. Agent Fee: Yes, You Pay Too

Unlike many countries where the landlord pays the agent, in Korea, both sides pay.

You’ll typically pay 0.3-0.5% of the total lease amount. That could mean 300,000 KRW or more upfront – even before you move in.

👉 Always ask about this early and make sure it’s included in your budget planning.

3. Monthly Management Fees (관리비)

This fee covers things like building security, hallway electricity, and cleaning. In officetels, it may also include internet, water, or even heating.

Ranges:

• Small studio: 50,000–80,000 KRW

• Modern building: 100,000–200,000+ KRW

👉 Ask what’s included – and get it in writing.

4. Utilities and Setup

You’ll need to open utility accounts (gas, electricity, internet, water), often under your name. Setup may require:

• ARC (Alien Registration Card)

• A bank account

• Help from your landlord or agent

Estimated monthly costs:

• Electricity: 30,000–80,000 KRW

• Gas (heating): 30,000–100,000 KRW in winter

• Internet: 25,000–40,000 KRW

5. Contract Translation and Support

If you don’t speak Korean, contract terms can be confusing. You might agree to pay for all repairs, cleaning, or early exit penalties without knowing it.

👉 Utilize a service like ours to have the contract explained in English and avoid any unpleasant surprises.

Budget Summary Example

Final Advice

💡 Always ask:

• What’s the total move-in cost?

• What’s included in monthly fees?

• Can I get a breakdown of all payments?

And remember – a verified listing might cost more upfront, but it protects you from scams, hidden conditions, and long-term stress.

👉 Need help budgeting or reviewing your lease?

Talk soon,

Relocation Support at Settle in Korea