About this tool
In Korea a large lump-sum deposit (jeonse or deposit) and monthly rent (wolse) can be traded against each other using a conversion rate. To turn deposit into rent, rent = (deposit reduced) x rate / 12. To turn rent into deposit, deposit equivalent = monthly rent x 12 / rate. For example, lowering the deposit by 50,000,000 won at a 5% rate adds 208,333 won of monthly rent, and 500,000 won of monthly rent equals 120,000,000 won of deposit at 5%. The compare tab converts both offers into a monthly cost: monthly rent + deposit x rate / 12, so you can see which offer is cheaper. Enter the rate yourself: for housing under the Housing Lease Protection Act, the legal cap is the Bank of Korea base rate plus 2 percentage points, and you should check today's base rate. Commercial leases follow different rules, and a deposit is returned at the end, so the comparison treats it as an opportunity cost only. This is a reference estimate and does not replace advice from a licensed real estate or legal professional.
How to use
- Pick a tab: deposit to rent, rent to deposit, or compare two offers.
- Enter the deposit and rent amounts in won.
- Type the conversion rate (check the legal cap: base rate + 2 percentage points).
- Read the converted amount or the monthly cost of each offer.