You've found an apartment, you're about to sign the lease, and the realtor mentions their commission. The number sounds high, you're not sure if it's negotiable, you don't know who pays what, and you definitely don't know if the rate they quoted is the legal rate or above it.
This guide walks through how Korean real estate commission actually works β the legal cap structure, what you'll pay in different transaction types, who pays what, and what's negotiable. It's short by Korean-rental-guide standards because the topic is short, but the money involved is real.
A note: HavenLens is a foreigner-focused rental service. Our realtor partners charge the standard legal commission, shown transparently before signing. This guide is the same explanation we walk our clients through.
How Korean commission is structured
Korean real estate commission is governed by law. There is a legal maximum (μνμ ) that varies by transaction type and value. Realtors can charge anywhere up to that maximum, but not above it without violating the Licensed Real Estate Agents Act (곡μΈμ€κ°μ¬λ²).
The maximum is expressed as a percentage of the transaction value, with the percentage stepping up as the value increases. Both sides of the transaction β tenant and landlord, or buyer and seller β pay separately. The realtor receives commission from both parties.
In practice, foreign renters pay the tenant-side commission. The landlord pays a separate landlord-side commission to the same realtor.
Commission rates by transaction type
Wolse (monthly rent rentals)
For wolse, commission is calculated on a converted base value, not just the rent. The conversion: deposit + (monthly rent Γ 100). For example, a wolse listing of 5000 / 60 (β©50M deposit, β©600K monthly rent) has a converted base of β©50M + (β©600K Γ 100) = β©110M.
If the converted base is under β©50M, a different formula applies: deposit + (monthly rent Γ 70). This protects very small wolse deals from disproportionate commission.
| Converted base | Max commission rate | Max commission amount |
|---|---|---|
| Under β©50M | 0.5% | β©200,000 |
| β©50Mββ©100M | 0.4% | None |
| β©100Mββ©300M | 0.3% | None |
| β©300Mββ©600M | 0.4% | None |
| β©600Mββ©1.2B | 0.5% | None |
| β©1.2Bββ©1.5B | 0.6% | None |
| Above β©1.5B | 0.6%, negotiable | None |
For the 5000 / 60 example (β©110M converted base): max commission is β©110M Γ 0.3% = β©330,000.
For a more typical foreigner wolse β say 3000 / 150 (β©30M + β©15M Γ 100 = β©180M converted base): max is β©180M Γ 0.3% = β©540,000.
Jeonse (full deposit rentals)
For jeonse, commission is calculated directly on the deposit amount. No conversion needed.
| Deposit | Max commission rate | Max commission amount |
|---|---|---|
| Under β©50M | 0.5% | β©200,000 |
| β©50Mββ©100M | 0.4% | None |
| β©100Mββ©300M | 0.3% | None |
| β©300Mββ©600M | 0.4% | None |
| β©600Mββ©1.2B | 0.5% | None |
| β©1.2Bββ©1.5B | 0.6% | None |
| Above β©1.5B | 0.6%, negotiable | None |
For a typical Gangnam jeonse at β©400M deposit: max commission is β©400M Γ 0.4% = β©1,600,000.
Property purchase
For buying property, commission rates are higher than rental:
| Property value | Max commission rate |
|---|---|
| Under β©50M | 0.6% (cap β©250,000) |
| β©50Mββ©200M | 0.5% |
| β©200Mββ©900M | 0.4% |
| β©900Mββ©1.2B | 0.5% |
| β©1.2Bββ©1.5B | 0.6% |
| Above β©1.5B | 0.7%, negotiable |
For a β©600M apartment purchase: max β©600M Γ 0.4% = β©2,400,000.
Who pays what
For rental transactions, both tenant and landlord pay commission separately to the realtor (or to two different realtors if each party brought their own). Each party pays roughly the same amount on their side.
For a wolse with β©540K tenant-side commission, the total realtor income from the deal is β©540K + β©540K (landlord side) = β©1.08M. This is normal β the same realtor coordinates both sides.
In some larger transactions, a buyer and seller each have their own realtor, and the two realtors split the work. In this case each party pays their own realtor only, but the total commission cost across the deal is similar.
What's negotiable
The legal cap is the maximum, not the required rate. In practice:
- For typical wolse and small jeonse, most realtors charge near the legal cap. Negotiating room is limited but exists, especially if the transaction is unusual (foreigner-OK landlord required, English service needed, etc.).
- For large jeonse and high-value purchases, the commission is more openly negotiable. On a β©600M+ jeonse or a β©900M+ purchase, asking for a 10β20% discount on commission is reasonable.
- For very high-value transactions (above β©1.5B), commission is explicitly negotiable in the legal framework. The realtor and the parties agree on a rate within the legal range.
For foreigners specifically, some realtors charge slightly above the standard rate to compensate for the additional work of foreigner-facing service (English communication, lease translation, foreigner-OK landlord screening). This is technically not allowed if it exceeds the legal cap, but it can fall within the legal range while being on the higher end.
If you suspect a realtor is charging above the legal cap, you can:
- Ask them to show you the legal cap calculation in writing
- Refuse to sign until the commission is within the cap
- Report the realtor to the Korea Association of Realtors (νκ΅κ³΅μΈμ€κ°μ¬νν) or the local government office
What commission covers β and doesn't
Korean real estate commission covers:
- Showing properties
- Negotiating terms between tenant and landlord (or buyer and seller)
- Drafting the standard rental contract or sale contract
- Stamping the contract with the realtor's professional seal
- Sometimes basic post-signing support (filing assistance, move-in coordination)
Commission does not typically cover:
- Property registry verification (λ±κΈ°λΆλ±λ³Έ) β usually free or near-free, you can do it yourself
- HUG deposit insurance application β separate process, separate fee
- Lease translation β most realtors don't translate; you arrange separately
- Move-in filings (νμ μΌμ, μ μ μ κ³ ) β you do these yourself at the district office
Some foreigner-focused services bundle some of these together. HavenLens's commission, for example, includes lease translation, λ±κΈ°λΆλ±λ³Έ verification with you in English, and accompaniment for the move-in filings.
When to ask for the commission in writing β before signing
Korean realtors typically state the commission verbally during the lease-signing conversation. For foreign renters specifically, ask for the commission in writing at least 24 hours before signing, including:
- The exact won amount you'll pay
- A copy of the legal cap calculation
- Confirmation of what's included (and not included) in the service
- Payment timing (typically due at lease signing, in cash or wire)
This protects you from surprise fees and gives you time to verify the rate.
Tax on commission
Korean real estate commission is subject to VAT (λΆκ°κ°μΉμΈ) at 10%. The legal cap shown above is before VAT. The total you pay is the commission Γ 1.10.
Most realtors will state the commission as a final number that includes VAT. Confirm whether the number you're quoted is pre-tax or post-tax.
For a β©540,000 commission, total with VAT is β©594,000.
TL;DR
- Korean real estate commission is capped by law at rates that vary by transaction type and value.
- For wolse: typical commission is 0.3β0.5% of (deposit + monthly rent Γ 100). Roughly β©300Kβ700K for typical foreigner wolse rentals.
- For jeonse: typical commission is 0.3β0.4% of the deposit. Roughly β©1β2M for typical Gangnam jeonse.
- Both tenant and landlord pay separately β you don't pay the landlord's side.
- The legal cap is negotiable downward, especially on large transactions.
- VAT (10%) is added on top of the commission.
- Get the commission in writing at least 24 hours before signing.
Common questions
How much is real estate commission in Korea? For wolse rentals: typically β©300,000β700,000 for typical foreigner deals. For jeonse: β©1β2 million for typical Gangnam transactions. For property purchase: 0.4β0.6% of the property value.
Who pays the realtor in Korea β tenant or landlord? Both. Each side pays their own commission to the realtor, calculated separately on the legal cap formula. Total realtor income from the transaction is roughly double what each individual party pays.
Is realtor commission negotiable in Korea? For typical wolse and small jeonse, slightly. For large jeonse and high-value purchases, more openly. Above β©1.5B, commission is explicitly negotiable within the legal range.
What does Korean real estate commission cover? Property showing, contract drafting, basic negotiation, the realtor's professional seal on the contract. Does NOT typically cover lease translation, λ±κΈ°λΆλ±λ³Έ verification, HUG insurance application, or move-in filings unless explicitly bundled.
Is VAT included in Korean realtor commission? The legal cap rates are pre-VAT. The total you pay is commission Γ 1.10 (with the 10% VAT added). Most realtors state the final number with VAT included; confirm before signing.
Can I refuse to pay realtor commission above the legal cap? Yes. The legal cap is enforceable, and a realtor charging above it is in violation of the Licensed Real Estate Agents Act. If you suspect this, ask for the calculation in writing and, if needed, report to the Korea Association of Realtors.
Where to go next
- The lease signing process the commission is for: The Foreigner's Korean Lease Checklist.
- The rental systems your commission depends on: Jeonse vs. Wolse.
- Total monthly cost picture (rent + commission + κ΄λ¦¬λΉ): Cost of Living in Seoul for Expats.
If you'd like a realtor who shows the commission transparently before signing, includes lease translation and move-in support at the standard rate, and walks you through every line item in English, the HavenLens search page is the starting point.