ENG : “Don’t Rent in Korea Before Reading This! Essential Checklist for Foreign Tenants”

💥 Essential Guide for Foreigners Renting in Korea: Avoid Deposit Scams and Secure Your Lease

Renting a home in Korea can be tricky, especially for foreigners. Language barriers, unfamiliar procedures, and the unique rental system make mistakes common.
The most common risk is losing your deposit, known as “Jeonse” in Korea.

This guide provides everything a foreigner needs to know to rent safely, prevent scams, and secure your housing in Korea.

---

🔎 1. Understanding the Basics of Korean Lease Types

Korean rental contracts are different from most countries. Understanding the basic structure is crucial.

---

🏠 ① Jeonse (Key Money Lease)

Jeonse is a unique system in Korea:
📌 You pay a large deposit to the landlord and live rent-free during the lease term.

• Deposit is returned at the end of the contract.
• No monthly rent, but risk is high due to large deposit amounts.

Why Jeonse Can Be Risky for Foreigners

• Deposits often amount to thousands to tens of thousands of USD.
• Language barriers make document verification difficult.
• Hard to verify landlord’s financial stability.
• “Empty deposit” fraud is common when property value falls.

---

💳 ② Monthly Rent (Wolse)

Monthly rent involves a smaller deposit and monthly payments for living.

• Lower deposit means lower risk.
• Often, a small deposit + monthly rent combined.
• Even with monthly rent, verify landlord’s financial status.

---

⚖️ ③ Semi-Jeonse (Half Deposit Lease)

A hybrid of Jeonse and monthly rent:

• Smaller deposit than Jeonse
• Monthly rent is lower than full Wolse
• Lower risk than Jeonse, but deposit safety is still critical

---

🚨 2. Common Deposit Scams Targeting Foreigners

Foreigners are especially vulnerable due to language barriers and unfamiliarity with procedures.

---

🔥 ① Empty Deposit Fraud

Occurs when total tenant deposits exceed the property value.

If property value falls or the landlord is in debt:
👉 Deposits may not be fully returned.

---

🔒 ② Undisclosed Landlord Debt or Liens

Landlord hides loans or unpaid taxes.

Once discovered post-contract, recovery is nearly impossible.

---

🏚️ ③ Impersonating the Landlord

Foreigners are easy targets.
Some scams involve: Tenant → Agent → Fake Landlord.

---

📄 ④ Forged Official Documents

Fraudsters forge property ownership documents to appear legitimate.

---

🧭 3. Step-by-Step Safe Rental Process for Foreigners (12 Steps)

Follow this process exactly to avoid risks.

---

1) Verify the Real Estate Agent’s License

Ensure the agent is officially registered.

Check:

• License displayed in office
• Business card info matches registration
• Legal commission rates

---

2) Confirm Landlord Identity (Original Property Registration)

Verify landlord’s information:

• Owner name
• Property address
• Outstanding loans (mortgages)
• Liens or seizures
• Any pending ownership transfers

🧷 “Do not sign if the person you’re dealing with isn’t the actual owner.”

---

3) Check Deposit vs. Property Value

Safe deposit ratios for foreigners:

• Jeonse → ≤70% of property value
• Semi-Jeonse → ≤50%
• Monthly rent → ≤15%

---

4) Verify Mortgage or Loans

Check property registration for existing mortgages.

Avoid situations where deposit < total loans + debts.

---

5) Get Direct Landlord Contact

Communicate with the landlord directly.
Verify ID if possible.

Fraud is common when landlords are unreachable.

---

6) Inspect the Property

Check:

• Leaks, mold
• Boiler, electricity
• Windows, doors
• Actual size
• Elevator availability
• Heating system

---

7) Verify Move-In Registration

Some properties require official move-in registration.
If not possible, rental may be unsafe.

---

8) Obtain a Contract Date Stamp

Registering your lease with the local government ensures priority in deposit claims.

---

9) Rental Registration (Mandatory in Some Areas)

File the rental registration if required.

---

10) Verify Maintenance Fees

Check which costs are included:

• Utilities (water, gas, electricity)
• Cleaning
• Building insurance
• Security
• Elevator maintenance

---

11) Contract Must Include Key Clauses

• Full address including unit
• Deposit amount
• Monthly payments
• Lease term
• Deposit return date
• Agent commission
• Special terms (repairs, damages)

---

12) Deposit Must Be Paid to Landlord’s Account Only

❌ Avoid:

• Agent’s personal account
• Family member’s account
• Third-party payment
• Corporate accounts unrelated to owner

---

🛡️ 4. Practical Checklist for Foreigners

---

📝 ✔ Before Signing the Contract

Item	Check List
Verify landlord ownership (original property registration)	⬜
Verify agent license	⬜
Check deposit vs property value	⬜
Check landlord debts (mortgages)	⬜
Confirm property legality	⬜
Confirm move-in registration possible	⬜
Include special clauses in contract	⬜
Deposit paid to landlord account	⬜
Inspect property	⬜

---

📝 ✔ After Signing the Contract

Item	Check List
Obtain contract date stamp	⬜
Register lease (if required)	⬜
Recheck maintenance fees	⬜
Monitor landlord payments and taxes	⬜

---

🧩 5. Extra Tips to Prevent Scams

---

🚫 1) Avoid deals that are too cheap

Unusually low prices are high-risk.

---

💬 2) Reject vague explanations from agents

“Don’t worry, it’s fine” → red flag.

---

🏦 3) Consider Deposit Protection Insurance

Extra safety net for your deposit.

---

📸 4) Document property condition

Take photos/videos of:

• Leaks, cracks, mold, damages

---

📑 5) Useful Contract Clauses

• “Deposit returned immediately upon lease termination”
• “Utilities charged only until move-out”
• “Repairs addressed promptly”
• “Maintenance fees clearly defined”

---

🌍 6. Frequently Asked Questions (FAQ)

• Q1: Can I sign with only a passport?
  Usually need Alien Registration Card.
• Q2: Can someone else sign for the landlord?
  Only with power of attorney + IDs.
• Q3: Why is Jeonse risky?
  High deposit amount.
• Q4: When do I pay agent commission?
  After contract completion.
• Q5: What if deposit return is delayed?
  Send formal notice immediately and consider legal action.

---

🎯 7. Recommended Safe Strategies

1. Prioritize monthly rent or semi-Jeonse.
2. Choose properties with deposit insurance.
3. Speak to landlord directly at least twice.
4. Obtain contract date stamp immediately.
5. Ensure all documents and receipts are shared.

---

🧱 8. Red Flags from Real Cases

• Landlord unreachable
• Refusal to show property registration
• Excessive, unexplained maintenance fees
• Dilapidated property priced unusually high
• Pressured to sign immediately

---

🔚 9. Summary for Foreign Renters

✔ Must-Have

• Verify landlord ownership and identity
• Check debts/mortgages
• Confirm move-in registration
• Obtain date stamp
• Verify agent license
• Deposit paid to landlord account

✔ Highly Recommended

• Deposit insurance
• Document maintenance fees
• Include protective clauses

✔ Avoid

• Signing without visiting
• No direct landlord contact
• Paying to agent’s personal account
• Using unverified agent