Jeonse vs Wolse vs Buying: How to Live in a Seoul Home
Korea has three main ways to live in a home: jeonse (a large refundable deposit and no monthly rent), wolse (a smaller deposit plus monthly rent), and buying. If you are new to Seoul, the jeonse system in particular can be confusing. This guide explains each option in plain English — the money, the risks, the protections for foreign tenants, and how to choose.
The three options at a glance
- Jeonse (전세) — one large, fully refundable lump-sum deposit (often 50–80% of the home's value), with no monthly rent. The deposit is returned in full at the end of the lease.
- Wolse (월세) — a smaller deposit (bojeunggeum, 보증금) plus monthly rent. This is the closest thing to renting in most other countries.
- Buying (매매) — full ownership. In Seoul this now involves a foreigner land-transaction permit; see our guide on buying property in Seoul as a foreigner.
How jeonse works
In a jeonse lease you hand the landlord a single large deposit and pay no monthly rent. The landlord holds (and invests) the money during the lease — historically an attractive arrangement when Korean interest rates were high — and returns the entire deposit to you when the lease ends, usually after two years. The appeal is obvious: no monthly housing cost. The catch is that you need a very large amount of cash up front, and you are trusting the landlord to give it all back.
Jeonse risks — and how to protect your deposit
This matters most for foreign tenants. In rare cases a landlord cannot return the deposit — for example if the property is heavily mortgaged or its value has fallen. Protect yourself:
- Register on day one. Complete 전입신고 (resident registration) and get the 확정일자 (fixed-date stamp) at the district office as soon as you move in. Together these give your deposit legal priority if the property is ever sold at auction.
- Buy deposit-guarantee insurance. A 전세보증보험 policy (for example from HUG, the Korea Housing & Urban Guarantee Corporation) repays your deposit if the landlord defaults.
- Check the registry first. Review the property's 등기부등본 (certified register) for existing mortgages or liens before you sign.
Our verified, English-speaking realtors walk foreign tenants through every one of these steps.
How wolse works
Wolse is a smaller deposit plus monthly rent — easy to enter, predictable, and with far less deposit risk. It is the usual choice for newcomers, students, and shorter stays. A common hybrid is banjeonse (반전세), or semi-jeonse: a larger deposit with a lower monthly rent, sitting between full jeonse and ordinary wolse.
Buying
Buying gives you full ownership and long-term stability. Since 2025, a foreigner purchasing a home in Seoul generally needs a land-transaction permit and must live in the property — though officetels are largely exempt. See our dedicated buying guide for the full picture.
Which should you choose?
- New to Korea, a short stay, or limited cash → wolse. Lowest barrier to entry and lowest risk.
- A large lump sum, staying two years or more, and you want no monthly cost → jeonse, with full deposit protection in place.
- Settling long-term and able to meet the residency rule → consider buying (or an officetel, which avoids the residential permit).
Lease basics in Korea
Leases typically run two years, and Korean law gives tenants strong protections — including the ability to request a renewal and limits on how much rent can rise. Always complete your 전입신고 and 확정일자, and use a licensed agent (공인중개사); brokerage fees are capped by local ordinance.
How Seoul Homes helps
Every listing is handled by a verified, English-speaking realtor who can explain jeonse and wolse for a specific unit, set up your deposit protection, check the registry, and handle the contract — so you can choose with confidence. Browse listings or send an inquiry to get started.