The legal cap is the lower of 10% and the Bank of Korea base rate + 2%p — 5.0% with the base rate at 3.00% (changed 2026-08-27). This site checks the BOK rate daily. The cap applies when converting an existing lease; new leases are negotiated freely.
FAQ
How is jeonse converted to monthly rent in Korea?
Multiply the part of the deposit being converted by the conversion rate and divide by 12. At 5%, ₩200M of deposit becomes about ₩833,000 a month.
What is the legal jeonse-to-wolse conversion rate?
The lower of 10% and the Bank of Korea base rate plus 2 percentage points — currently 5.0%.
Worked example
Example: converting a ₩300 million jeonse to a ₩100 million deposit converts ₩200 million to rent. At 5% a year, rent is ₩200 million × 5% ÷ 12 = ₩833,333 a month (₩10 million a year).
Common mistakes
The legal cap applies when an existing lease's deposit is converted to rent, including at renewal; unrelated new leases use market rates.