What is Wolse?
In Korean language Wolse (월세) refers to “Monthly rent” while Jeonse refers to “Large Deposit”.
Within the Rental System of South Korea there are two types of Contract namely Wolse and Jeonse. Wolse refers to paying Monthly rent and is the most common option and a frequent option for international residents living in South Korea. In Wolse a short deposit is given as a security which is recovered after the term of contract and a monthly rent is paid to the landlord on a predetermined day.
The term Key Money is frequently used upon instead of “deposit”.
Real Estate Websites in Korea
Deposit and rent price are displayed on housing websites such as Naver Real Estate, specialty smartphone apps such as Zigbang and now Korea Wolse– A premium rental listing website for people sharing their room or looking for renters, and in the windows of real estate offices known as (부동산, budongsan). Despite the price being set, negotiation is sometimes possible. A common negotiation is paying a higher deposit for a lower monthly rent. Along with the monthly rent a monthly service fee or maintenance fee is also paid every month.
A rare version of monthly rent is paying your rent in advance for the entire length of your stay. Before moving in, your deposit and all rent payments are given to the landlord. Each month’s rent is subtracted for the lump sum. Upon completion of the contract the remaining deposit is returned. As this requires a substantial deposit, and rent doesn’t come back to the renter, people with this much money usually opt for a “jeonse” arrangement instead.
What is Jeonse?
The Jeonse system (전세) involves putting a deposit roughly the price of the property. Such a large deposit is provided that no rent is paid and the deposit is returned to the renter at the end of a two-year contract. As most people don’t have 200,000,000 won (roughly 200,000 USD or 200,000 Euro) or more in cash for a deposit, some or all of the deposit is borrowed from a bank. The interest payments to the bank are significantly less than one would pay for normal rent, say monthly 200,000 won to a bank instead of 450,000 to a landlord in rent. This system is advantageous as your “rent” is to the bank, is smaller than normal rent, and your deposit is returned to you at the end of the contract period, again, usually two years. The landlord makes money on this arrangement via interest payments on your deposit in a locked two-year savings account. The large deposit also protects the property owner from financial losses due to potential damage that occur at the hands of a renter.
While this is the preferred method for Koreans, it is nearly impossible for international individuals to do as banks have a higher risk involved with foreign nationals. Unless you are able to put up collateral worth the price of the loan, the banks will decline your request for a Jeonse loan.
What is Banjeonse
As interest rates in banks remain low, landlords are wanting to do the jeonse system less than decades prior as the rate of return has diminished. In recent years the 반전세 (banjeonse), or literally “half jeonse” system has emerged. This is basically a low monthly rent system with substantial deposit; roughly half of a normal jeonse deposit. Cheaper than a normal rented property, the landlord can collect both rent and interest off of the large deposit given.
Foreigners Living in Korea
Foreign nationals who are living in Korea for a specified amount of time whether for as students (D2) or company employees with an E7 visa opt to choose the Wolse option in which a deposit amount is paid ranging from 1 million won to several million won and a monthly rent, the amount of which depends on the amount of deposit paid. Higher the deposit lower the monthly rent and vice versa. A legal contract is made in the presence of certified real estate agents which share the details of the contract and receive a service fee ranging from 100,000 won to 250,000 won. Usually the contract is made for 1 year. In case the resident have to relocate to another location in Korea or return back to home country in most cases they still need to pay their monthly rent to get the deposit at the end of the term which puts them in a very bad situation. In case they find a renter to stay in their place a new contract is made in the presence of the new renter, the current renter and the landlord. To find a new renter foreigners usually go to their close circle and social media platforms such as Facebook groups and post their apartment information over their. These groups do not provide a user friendly or suitable environment for listing.
What is Korea Wolse?
Korea Wolse is a rental listing marketplace where room owners following the Wolse option of staying in Korea can list their room and find a renter who can share the room or stay as a whole. Korea Wolse provides an intuitive and easy interface to list your room for free and find the renters quickly. With in build map feature you can find the listings within a certain radius of a specific location. It also provides the user to communicate via messages on the platform to discuss the meetup and specificities.
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