Type of housing

Apartment
Apartment (Mansion)
  • Multiplex housing with more than 5 floors
  • ‌There are convenient facilities like markets, shopping center and a public parking lot
Officetel
Officetel
  • ‌There is a public parking lot
  • ‌Officetel is a mixed form of offices and apartments: oneroom, 2-room, 3-room, hotel type room and apartment type room depending on the numbers and style of room
Single-family House
Single-family House
  • ‌‌Built on private ground. (Sole ownership of house by one person)
Villa
Villa (Multiplex housing)
  • ‌‌Western style mansion, low-rise building with less than 5 floors
  • ‌‌Smaller than most apartment estates

Purchasing a House

Related laws
  • In Korea, the business practice in real estate dealing is to deal both land and building together.
  • ‌Applying laws differ according to the visa status and the purpose of purchasing of the foreigner who intends to trade real estates
Purchasing a house for residence
  • Choose real estate agent very carefully, going over their experience and credibility.
  • The agent will take care of all steps such as ownership transferring by proxy.
  • ‌Can write in English contract.
  • You need to check the register book before making a contract. (When visiting a local registry office: Alien registration card and passport are required)

Renting a House

Leasing house on a deposit basis (Deposit system)
  • After conclusion of a 1 to 2 year lease contract, pay large deposit.
  • After contract expires, the entire deposit will be fully returned.
  • ‌When making a contract, tenant need to pay first 10% down payment of deposit.
  • Tenant should keep the house in same condition as when resident first moved in.
Monthly rent
  • ‌After conclusion of a 1 to 2 year lease contract, the tenant should pay set (smaller than lease) deposit and monthly rental fee.
  • ‌‌The amount of the deposit may be 10 or 20 times as much as the monthly rental fee.
  • ‌‌When making a contract, the tenant should pay 10% down payment of deposit.
  • ‌When moving in, tenant should pay the balance and rental feel for the 1st month.
  • ‌The deposit is fully returned after the contract expires in principle. (In the event that there is an exceptional situation such as failure of monthly rental fee payment, the amount of the deposit subtracted by the outstanding rental fees will be returned)

Tips for Move!

Leasing house on a deposit basis (Deposit system)
  • In order to avoid trouble, you must confirm deposit money, payment options of rent, real estate fee, the date of move and the contract period.
  • After the agreement of the contract condition is done between a landlord and a tenant, both a landlord and a tenant should make a contract and keep a copy each.
  • ‌The cost for moving must be prepared in advanced. (Expense of moving and other cost for moving)
  • After move, within 14 days the report of residency change should be done to gu office public service center or immigration office. Required documents: Passport, certificate of alien registration, rental contract
  • A registration office or an administrative district's welfare center should be visited and received a definite date on the contract. Required documents: Certificate of alien registration which is changed address, rental agreement.
  • Reading a certified copy of the register, related information should be checked.
  • It is safe that the deposit of the down payment, middle payment, balance should be transferred to landlord's account who makes the contract.
What is a definite date?
  • ‌It is a proved date that there is a rental contract.
  • ‌After affixing a seal of institute which has a public confidence to a rental contract. the number on definite date sheet must be written on the contract.
  • ‌It can be public documents that is able to be returned deposit money by preferential payment right
Why is it important to receive an inconvertible date?
  • ‌Rental relation will bed once the rental expected house is sold by auction or disposition for failure to pay. In this case the inconvertible date becomes a mandatory requirement to get a rent deposit and a deposit.
Insurance guaranteeing the return of lease deposits
  • ‌To insure against not receiving the lease deposit back, a tenant may buy the insurance guaranteeing the return of lease deposits at HUG (www.khug.or.kr)
Real estate agency brokerage fees
  • ‌House refurbishment
Real estate agency brokerage fees

Transaction Type, Transaction Amount, Upper Limit of Fees, Limit Amount 로 구성된 표

Transaction Type Transaction Amount Upper Limit of Fees (%) Limit Amount
Trade Less than 50 million 0.6 250,000won
50 million won -0.2 billion won 0.5 800,000won
0.2 billion -0.6 billion 0.4 none
0.6 billion -0.9 billion 0.5 none
Lease, etc. (jeonse, wolse) Less than 50 million won 0.5 200,000won
50 million won -0.1 billion won 0.4 300,000won
0.1 billion -0.3 billion 0.3 none
0.3 billion -0.6 billion 0.4 none

The fee for trade of a residence whose price is 0.9 billion won or more is as much as 9 / 1,000 or less. The fee for trade of a residence whose price is 0.6 billion won or more is as much as 8 / 1,000 or less. The exact amount is decided through consultation between the client and the real estate agent.

Source: "Be an Incheoner" - Guidebook for Foreign Residents in Incheon