Korea Jeonse-Monthly Rent Conversion Calculator
Compare jeonse, monthly rent, and rent changes after adjusting a deposit under South Korean rules.
The statutory ceiling is the lower of 10% a year or the Bank of Korea base rate plus 2 percentage points. The default is 4.75%, based on the 2.75% base rate effective July 16, 2026.
Distinguishing Korea’s Statutory Rent-Conversion Ceiling from a Negotiated Rate
Reference date and last reviewed: July 26, 2026
Calculation Basis
Under Article 7-2 of South Korea’s Housing Lease Protection Act and Article 9 of its Enforcement Decree, the annual ceiling for converting deposit into monthly rent is the lower of 10% or the Bank of Korea base rate plus 2 percentage points. The default base rate is 2.75%, effective July 16, 2026.
Reference Limits
The statutory ceiling applies in the deposit-to-rent direction. Reverse-converting rent into a jeonse deposit or reducing rent after raising the deposit is a negotiation reference and does not determine market value, management charges, renewal terms, senior claims, or deposit-return risk.
When to Confirm Officially
Before signing or renewing, check the current statutory text and the Bank of Korea base rate effective for the contract date. State the deposit, monthly rent, management charges, conversion rate, and payment timing separately in the contract, and seek the lease-dispute mediation body or legal advice when needed.
Usage Tips
Compare market pricing and deposit-return risk, not only the conversion rate
The statutory ceiling limits conversion from deposit to monthly rent. A reverse-converted jeonse amount or negotiated-rate estimate does not set the contract price, so also review comparable listings, management charges, renewal terms, and the landlord’s ability to return the deposit.
What is Korea Jeonse-Monthly Rent Conversion Calculator?
The Korea Jeonse-Monthly Rent Conversion Calculator converts part of a jeonse deposit into monthly rent, reverses monthly rent into a jeonse-equivalent deposit, and compares rent after raising or lowering a deposit in a South Korean housing lease. It keeps the statutory ceiling linked to the Bank of Korea base rate separate from a user-entered negotiated conversion rate.
How to Use
- 1Choose jeonse to monthly rent, monthly rent to jeonse, or deposit-change comparison.
- 2Enter the current deposit, current rent when applicable, and the proposed new deposit in Korean won.
- 3Use the statutory ceiling or enter the annual negotiated rate you want to compare.
- 4Review the applied rate, statutory ceiling, rent change, and equivalent deposit against the contract and comparable homes.
Separate the statutory ceiling from the negotiated rate when comparing a Korean lease
Last reviewed: July 26, 2026Core deposit-to-rent formula
monthly rent change = deposit reduction × annual rate ÷ 12; statutory ceiling = min(10%, Bank of Korea base rate + 2 percentage points)
The annual rent value of the released deposit is divided across 12 months. Even when a negotiated rate is selected, the calculator separately computes the statutory ceiling for a direct comparison.
Reducing a KRW 300 million jeonse deposit to KRW 100 million
- • Current jeonse deposit: KRW 300,000,000
- • New deposit: KRW 100,000,000
- • Bank of Korea base rate: 2.75%; statutory ceiling: 4.75%
- 1. The deposit converted into rent is KRW 300,000,000 - KRW 100,000,000 = KRW 200,000,000.
- 2. Annual rent value is KRW 200,000,000 × 4.75% = KRW 9,500,000.
- 3. Monthly rent is KRW 9,500,000 ÷ 12 = about KRW 791,667.
At the 4.75% statutory ceiling, the estimated new monthly rent is about KRW 791,667.
How to read the result
- A higher rate produces more monthly rent from the same deposit reduction, so compare the negotiated rate and statutory ceiling with identical deposit inputs.
- A lower rate produces a larger reverse-converted jeonse deposit, which is why the reverse result should not be treated as a stand-alone appraisal.
Conditions that change the result
- The Bank of Korea base rate can change, and amendments can change the statutory addition or fixed ceiling, so verify the official basis effective for the contract date.
- This housing conversion excludes commercial leases, management fees, rent-free periods, advance rent, renewal-right details, and the risk of recovering the deposit.
Common input mistakes
- Using the Bank of Korea base rate itself as the statutory ceiling omits the additional 2 percentage points required by the current decree.
- Do not treat a reverse-converted value as a legally guaranteed jeonse price or accept a negotiated deposit-to-rent rate above the statutory ceiling without checking the rule.
Reference Knowledge
- ●For converting a housing deposit into monthly rent, South Korea’s statutory annual ceiling is the lower of 10% or the Bank of Korea base rate plus 2 percentage points.
- ●Using the Bank of Korea base rate of 2.75% effective July 16, 2026, the calculator’s default statutory ceiling is 4.75% a year.
- ●When a deposit is reduced, monthly rent increase equals the deposit reduction multiplied by the annual conversion rate and divided by 12.
- ●Reverse conversion uses current deposit + monthly rent × 12 ÷ annual rate, but the result does not legally set the market jeonse price or the contract deposit.
- ●The statutory ceiling limits conversion from deposit into rent. It is not automatically a minimum governing reverse conversion or a negotiated rent reduction when the deposit is raised.
FAQ
Q.What is the current Korean statutory conversion rate?
With the Bank of Korea base rate at 2.75% from July 16, 2026, adding the statutory 2 percentage points gives 4.75%, below the fixed 10% ceiling. Because the base rate can change, check the official rate effective on the relevant contract date.
Q.Can I enter a negotiated rate above the statutory ceiling?
You can enter it for comparison, but a deposit-to-rent conversion cannot exceed the statutory ceiling. The calculator does not silently replace your input; it displays the negotiated result, the statutory comparison, and a warning.
Q.Is the reverse-converted amount a fair jeonse market price?
No. It is only the deposit value implied by the entered rent and rate. Actual jeonse pricing depends on the home, location, supply, senior claims, guarantee eligibility, and deposit-return risk.
Q.Must rent fall by the calculated amount when I raise the deposit?
No. That result applies the same rate symmetrically as a negotiation reference. The statutory ceiling governs conversion of deposit into rent and does not automatically fix the reverse-direction reduction.
Q.Should management charges be included as monthly rent?
No. This calculator exchanges only the lease deposit and contractual monthly rent. Review flat management charges, metered utilities, parking, and internet separately in the lease.
