Everything About Jeonse-Rent Conversion
Every tenant in Korea eventually asks: "If I lower my jeonse deposit by 100M KRW, how much monthly rent will I pay?" The whole conversion hinges on one number — the conversion rate. Monthly rent = converted deposit × rate ÷ 12, and conversely, jeonse-equivalent deposit = rent deposit + rent × 12 ÷ rate. This calculator handles both directions instantly.
The legal cap matters. Article 7-2 of the Housing Lease Protection Act limits the conversion rate for existing contracts to the Bank of Korea base rate plus 2%p set by decree. With the base rate raised to 2.75% on July 16, 2026, the current cap is 4.75%/yr (as of 2026-08-21). The calculator defaults to 4.75%, lets you adjust to match market rates, and warns when your input exceeds the cap.
For example, lowering a 300M KRW jeonse deposit to 50M KRW converts 250M KRW; at 4.75% the rent is 250M × 4.75% ÷ 12 ≈ 990,000 KRW/month. Lowering the deposit by just 100M KRW adds about 396,000 KRW of monthly rent. Conversely, a home with a 10M KRW deposit and 500,000 KRW rent is equivalent to a jeonse deposit of about 136M KRW.
Pro tip: if the conversion rate is higher than your loan rate, raising the deposit and cutting rent tends to win; if lower, the opposite. Compare actual market conversion rates (they vary by region per Korea Real Estate Board statistics), jeonse loan rates, and deposit-return risk together. This tool is a simulation — final terms must be agreed with the other party.