Jeonse vs Wolse
A jeonse’s huge deposit isn’t “free.” That cash just sits locked up. Compare both leases by their real monthly cost, and see how much jeonse ties up.
How you value the money locked up in the deposit. Use your jeonse-loan rate if you borrow, or your savings rate if it’s your own cash.
| Jeonse — deposit cost | 666,667 |
| Wolse — rent | 800,000 |
| Wolse — deposit cost | 66,667 |
| Extra cash jeonse ties up | 180,000,000 |
You normally get it back when the lease ends. Until then it’s locked up, and at risk if anything goes wrong.
How it works
It turns both options into an effective monthly cost. For wolse, that’s the rent plus the opportunity cost of the smaller deposit: the interest you give up while that money sits locked away. For jeonse it’s the opportunity cost of the large deposit. The lower monthly cost wins, but jeonse ties up far more cash.
It’s how you value the money locked up in a deposit. If you borrow for the jeonse, use your jeonse-loan rate. If it’s your own savings, use the rate you’d otherwise earn on it. A higher rate makes the big jeonse deposit look more expensive.
Not always. Jeonse usually costs less per month, but it locks up a large deposit you can’t touch. That deposit is also exactly what’s at risk in jeonse fraud. Weigh the monthly saving against the cash tied up and the risk.
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A ₩200M jeonse at 4% costs about ₩670,000/mo in interest you give up. A wolse with a ₩20M deposit and ₩800,000 rent comes to about ₩867,000/mo. Jeonse is ~₩200,000/mo cheaper, but ties up ₩180M more.
“Cheaper per month” isn’t the whole story. A large jeonse deposit is exactly what gets lost in deposit fraud. Always check the property register, and take the steps that protect your deposit (see the guide).
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Questions people ask
Usually, month to month, because you only “pay” the opportunity cost of the deposit instead of rent. But if rates are high, or you’d borrow the whole deposit, the gap shrinks. Compare your own case.
Often 50–80% of the property’s value. That’s why jeonse ties up so much cash and carries the most risk if anything goes wrong.
You can apply for a jeonse loan as a foreign resident if your ARC (alien registration card) has enough time left, you have a job, and your debt ratio is within the limit. The loan interest then becomes your real monthly cost, so put that rate into the calculator.