Seven in 10 Korean Rental Deals Now Involve Monthly Rent: Why Is Jeonse Declining in 2026?
Monthly-rent contracts accounted for 68.3% of reported home leases across South Korea from January through July 2026. In everyday terms, roughly seven out of every 10 jeonse and monthly-rent transactions involved some monthly payment. The share was 69.7% in Seoul and 80.4% for non-apartment housing nationwide. But “monthly rent” in these statistics includes not only pure monthly-rent contracts, but also leases with large deposits and banjeonse, a hybrid between jeonse and monthly rent. Jeonse is not about to disappear overnight. A more accurate reading is that Korea’s rental market is quickly moving away from leases built around one large deposit and toward contracts that combine a deposit with monthly payments.
The Bottom Line
- Nationwide monthly-rent share: 68.3% based on reports filed from January through July 2026, up 6.5 percentage points from 61.8% in the same period a year earlier.
- Seoul monthly-rent share: 69.7% over the same period, above the national average.
- Non-apartment monthly-rent share: 80.4% nationwide, reflecting stronger avoidance of jeonse for villas and small multifamily homes after a wave of deposit fraud.
- In the statistics, monthly rent includes not only pure monthly rent but also banjeonse and other leases that combine monthly payments with large deposits.
- The decline in jeonse appears to reflect several forces at once: deposit fraud, high deposit requirements, tighter lending rules, landlords’ preference for monthly cash flow, and fewer jeonse listings.
- Rather than disappearing completely, jeonse is more likely to remain alongside apartment jeonse and deposit-backed monthly-rent contracts in a reshaped rental market.
January–July 2026
January–July 2026
Includes deposit-backed monthly rent and banjeonse
What Does “Seven Out of 10 Leases Are Monthly Rent” Actually Mean?
According to the Ministry of Land, Infrastructure and Transport’s July 2026 housing statistics, monthly-rent contracts made up 68.3% of nationwide jeonse and monthly-rent transactions reported from January through July. This is not a count of new contracts signed in a single month. It is a cumulative figure based on the filing date, combining transactions reported through the lease-reporting system and records that received a legally certified date.
It does not mean that seven out of every 10 renter households currently live under monthly-rent contracts, nor does it mean that exactly 70% of leases signed in July alone were monthly rent. It means that about 68% of the rental transactions reported from the start of 2026 through July were classified as involving monthly rent.
| Year | Monthly-rent share | Change from a year earlier |
|---|---|---|
| 2022 | 51.5% | Starting point |
| 2023 | 55.0% | +3.5%p |
| 2024 | 57.3% | +2.3%p |
| 2025 | 61.8% | +4.5%p |
| 2026 | 68.3% | +6.5%p |
Figures cover January through July of each year and are based on the filing date. Data based on the contract date or compiled by individual platforms may differ.
The Monthly-Rent Statistics Also Include Banjeonse
In everyday conversation, monthly rent often brings to mind a small deposit followed by a payment every month. Housing statistics use a broader definition: any contract with even a small monthly payment is classified as monthly rent. Banjeonse—with a deposit worth hundreds of millions of won and a relatively small monthly payment—still counts as monthly rent in the data.
| Contract type | Deposit | Monthly payment | Statistical category |
|---|---|---|---|
| Jeonse | Large lump-sum deposit | None | Jeonse |
| Banjeonse | Large deposit close to a jeonse deposit | Some monthly rent | Monthly rent |
| Deposit-backed monthly rent | A set deposit | Yes | Monthly rent |
| Pure monthly rent | None or very small | Yes | Monthly rent |
A 68.3% monthly-rent share does not mean every contract looks like a KRW 10 million deposit plus KRW 1 million in monthly rent. It is closer to saying that many tenants have converted part of what would once have been a jeonse deposit into monthly payments.
Why Do Seoul, Apartments, and Non-Apartments Have Different Monthly-Rent Shares?
A single nationwide average hides major differences by region and housing type. Monthly rent accounted for 69.7% of all home leases in Seoul from January through July 2026, and more than half of Seoul apartment leases also involved monthly payments. The shift was much faster in non-apartment housing: 80.4% nationwide and 78.0% in Seoul.
| Market | Monthly-rent share | How to read it |
|---|---|---|
| All homes nationwide | 68.3% | Average for the national rental market |
| All homes in the Seoul metropolitan area | 66.9% | Up from 60.4% in the same period a year earlier |
| All homes in Seoul | 69.7% | Up from 63.8% in the same period a year earlier |
| Non-apartment homes nationwide | 80.4% | A pronounced shift toward monthly rent in villas, row houses, and small multifamily homes |
| Non-apartment homes in Seoul | 78.0% | Above Seoul’s overall average |
These figures cover different markets, so Seoul’s all-home figure and the nationwide non-apartment figure should not be treated as a direct ranking.
Why Is Jeonse Declining While Monthly Rent Grows?
No single factor can fully explain the rising share of monthly rent. The ministry’s statistics show the outcome of transactions, not why each tenant and landlord chose a particular contract. Still, the shift can reasonably be read as several forces moving in the same direction: greater caution after jeonse fraud, the burden of large deposits and borrowing, landlords’ preference for monthly cash flow, fewer jeonse listings, and changes in the policy and financial environment.
| Factor | What changes for tenants | What changes for landlords |
|---|---|---|
| Jeonse fraud and unreturned deposits | Tenants avoid handing over a large jeonse deposit | Landlords choose monthly-rent contracts with a smaller repayment burden |
| High jeonse deposits | Tenants struggle to cover the deposit with savings and jeonse loans | The unfunded portion is converted into monthly rent |
| Tighter loan and guarantee reviews | Tenants cannot borrow as much jeonse funding as they want | Landlords offer deposit-backed monthly rent as jeonse demand falls |
| Preference for monthly cash flow | Tenants trade a large upfront payment for recurring monthly costs | Landlords receive regular rental income instead of investing the deposit |
| Fewer jeonse listings | Deposits and competition rise for the remaining homes | Landlords may convert listings to banjeonse at market rates |
First, Large Deposits Feel Riskier After Jeonse Fraud
Instead of paying rent every month, a jeonse tenant hands the landlord a deposit ranging from tens of millions to hundreds of millions of won. If the home’s value or auction price falls below the deposit, prior claims are large, or the landlord’s finances deteriorate, the tenant may not recover the full deposit when the lease ends.
Jeonse fraud and unreturned deposits have been especially concentrated in villas, row houses, and small multifamily buildings where market values are harder to verify and collateral values less transparent. The 80.4% monthly-rent share for non-apartment homes nationwide from January through July 2026 can be seen as part of this broader move away from risk.
Monthly-rent deposits are not completely free of repayment risk. But reducing the deposit lowers both the amount of wealth tied up in one contract and the potential loss, giving tenants a reason to choose deposit-backed monthly rent.
Second, Unfunded Jeonse Deposits Are Being Converted Into Monthly Rent
Suppose the jeonse deposit for a desired home is KRW 400 million, but the tenant can raise only KRW 300 million through savings and a jeonse loan. The choice is either to give up the home or take a banjeonse contract that turns the KRW 100 million shortfall into monthly rent. This type of conversion becomes more common when jeonse prices rise and borrowing limits tighten at the same time.
In such cases, the rise in monthly rent may not reflect new demand for pure monthly-rent housing. It may simply mean that part of a jeonse deposit has become a monthly expense. That is why the higher statistical share of monthly rent should not be read only as a surge in households paying pure monthly rent.
If a tenant cannot raise the full KRW 400 million jeonse deposit and instead signs for a KRW 300 million deposit plus monthly rent, the living arrangement may still feel close to jeonse—but the statistics count it as one monthly-rent transaction.
Third, Landlords Prefer Regular Income to a Large Deposit
From a landlord’s perspective, a jeonse deposit resembles a large interest-free loan. Jeonse can be attractive when the money can be used to buy another property or invested at a high return. But when leveraged property investment and borrowing are restricted and the burden of safely returning the deposit grows, landlords have more reason to prefer recurring monthly income over a large deposit.
Interest rates matter, but the direction is not always simple. When deposit rates fall, landlords earn less from investing a deposit and may prefer monthly rent. When lending rates rise, tenants may struggle to pay interest on jeonse loans and shift to monthly rent. The Bank of Korea raised its base rate to 3.00% on August 27, 2026, but the shift toward monthly rent is a structural change shaped by financial rules and deposit risk as well as rates.
Fourth, Fewer Jeonse Listings Make the Remaining Ones More Expensive
Jeonse supply falls when fewer new apartments are completed, more owners move into their own homes, or homes previously offered under jeonse are sold or converted to monthly rent. If tenant demand for jeonse remains unchanged, competition for fewer listings pushes deposits higher, forcing households that cannot raise the money into banjeonse or monthly rent.
Apartment completions in Seoul fell 48.7% year over year from January through July 2026. The decline is not the only cause of the shift toward monthly rent, but it can tighten the Seoul jeonse market by reducing the rental listings that normally arrive with new move-ins.
How Should You Compare the Real Cost of Jeonse and Monthly Rent?
Monthly rent feels expensive because money leaves the account every month, while jeonse can feel free because the deposit is supposed to come back. But jeonse still involves loan interest, the opportunity cost of the tenant’s own money, guarantee premiums, and the risk that the deposit will not be returned. For monthly rent, the monthly payments and the opportunity cost of the deposit should both be counted.
| Contract | Basic calculation | Additional costs to check |
|---|---|---|
| Jeonse | Jeonse-loan interest + opportunity cost of your own money | Guarantee premiums, early-repayment costs, and deposit-repayment risk |
| Banjeonse | Loan interest + opportunity cost of your own money + monthly rent × 12 | Guarantee premiums and eligibility for monthly-rent tax credits |
| Monthly rent | Opportunity cost of the deposit + monthly rent × 12 | Maintenance fees and eligibility for monthly-rent tax credits |
Example: A KRW 200 Million Jeonse Loan Versus KRW 800,000 in Monthly Rent
Suppose a tenant with KRW 100 million in savings is comparing a home with a KRW 300 million jeonse deposit against one requiring a KRW 100 million deposit and KRW 800,000 in monthly rent. At an annual interest rate of 4%, a KRW 200 million jeonse loan costs KRW 8 million a year. The monthly-rent contract costs KRW 9.6 million a year in rent. If all other costs are equal, jeonse is KRW 1.6 million cheaper per year in this example.
In practice, however, the approved loan amount and rate, guarantee premiums, early-repayment fees, monthly-rent tax credits, and deposit safety all need to be considered. If a home is ineligible for jeonse-deposit insurance or the deposit is at high risk, safety may matter more than the simple cost difference.
The 4% annual rate is an assumption for illustration. Actual jeonse-loan rates and limits vary by lender, guarantor, income, and property.
What Is the Jeonse-to-Rent Conversion Rate? How Much Rent Replaces a KRW 100 Million Deposit?
The jeonse-to-rent conversion rate is the annual rate used when all or part of a jeonse deposit is converted into monthly rent. Multiply the reduction in the deposit by the conversion rate, then divide by 12 months.
Monthly rent added = Deposit reduction × Jeonse-to-rent conversion rate ÷ 12
As of September 1, 2026, the Bank of Korea’s base rate is 3.00%. Under the Housing Lease Protection Act, the cap for converting an existing deposit into monthly rent is the lower of 10% a year or the base rate plus 2 percentage points. The current cap is therefore 5.00% a year. Converting KRW 100 million at 5% gives a maximum calculated monthly payment of about KRW 416,667.
| Conversion rate | Annual rent | Monthly equivalent |
|---|---|---|
| 3% a year | KRW 3 million | KRW 250,000 |
| 4% a year | KRW 4 million | About KRW 333,333 |
| 5% a year | KRW 5 million | About KRW 416,667 |
Does the Shift to Monthly Rent Reduce or Increase the Burden on Tenants?
Monthly rent lets tenants move into a preferred area without a huge lump sum and reduces the risk of losing a large jeonse deposit. It also lowers the chance that a delayed deposit repayment will leave a tenant unable to fund the next lease when moving.
On the other hand, rent leaves the account every month and reduces disposable income. A jeonse deposit can be returned when the lease ends, but monthly rent is consumed as a housing expense and does not remain as an asset. Among households with the same income, those with a large lump sum can choose jeonse and reduce monthly spending, while those without one may face higher recurring costs.
| Benefits | Burdens |
|---|---|
| Lower upfront deposit | Higher fixed monthly expenses |
| Smaller potential loss if the deposit is not returned | Rent accumulates over a long stay |
| More contract options when the jeonse-loan limit is insufficient | Rent remains due even if income falls |
| Less money tied up when moving | Costs may fall more heavily on households with fewer assets |
Will Jeonse Really Disappear?
Jeonse is unlikely to vanish completely in the short term. Tenants may still prefer it for a safe home when monthly rent costs more than jeonse-loan interest, while landlords may choose it when they can make use of the deposit. Demand also remains strong in markets such as apartments, where prices are relatively transparent and deposit insurance is easier to obtain.
Still, high-risk jeonse and non-apartment jeonse are likely to keep declining, while more apartment contracts may convert part of the deposit into monthly rent through banjeonse. Instead of a clear split between jeonse and monthly rent, the future rental market may center on contracts that combine deposits and monthly payments in a wide range of proportions.
| Forces preserving jeonse | Forces accelerating the shift to monthly rent |
|---|---|
| Tenants’ preference for lower monthly housing costs | Concerns about jeonse fraud and unreturned deposits |
| Jeonse loans and deposit-return guarantees | High deposits and insufficient borrowing limits |
| Apartment jeonse in transparent markets | Lower trust and limited guarantee eligibility for non-apartments |
| Long-term residents who want jeonse | Landlords’ preference for recurring cash flow |
What Is the Government’s Safe Jeonse and Monthly Rent Trust Designed to Change?
In August 2026, the Ministry of Land, Infrastructure and Transport announced plans for a “Safe Jeonse and Monthly Rent Trust” program that would convert monthly-rent homes into jeonse listings. A tenant would deposit the jeonse funds with a public rental-stabilization body, which would manage the money and provide the landlord with investment income similar to monthly rent.
Tenants could reduce repayment risk by placing the deposit with the public body instead of the landlord and potentially live in the home at a financing cost below monthly rent. Landlords would receive agreed monthly returns. As of September 1, 2026, however, the project was still planned as a program seeking applications from interested tenants and landlords. It should not be understood as a system already available for every rental contract.
How Should You Choose Between Jeonse, Banjeonse, and Monthly Rent?
The contract with the lowest monthly payment is not automatically the best, and the one with the smallest deposit is not always the safest. Compare loan interest with rent for the same home, then consider how likely you are to recover the deposit and how long you plan to stay.
| What to check | Question to ask |
|---|---|
| Your own funds | Can you fund the deposit and still keep emergency savings? |
| Borrowing | What loan limit, interest rate, and guarantee premium can you actually obtain? |
| Monthly burden | What share of your income will rent and maintenance fees consume? |
| Deposit safety | Is the deposit safe after considering prior claims in the property register and the home’s market value? |
| Deposit guarantee | Are the property and contract eligible for jeonse-deposit return insurance? |
| Length of stay | How likely are you to move early, and what would early termination cost? |
| Tax benefits | Are you eligible for benefits such as the monthly-rent tax credit? |
Safety Checks Before Signing Jeonse or Deposit-Backed Monthly Rent
- Check the property register for the owner, mortgages, seizures, and any trust registration.
- Compare the deposit with government transaction data and nearby contracts to make sure it is not excessive relative to the home’s value.
- For a multi-household property, check deposits held by higher-priority tenants and the record of legally certified dates.
- Before signing, confirm whether the lease qualifies for a deposit-return guarantee from HUG, HF, SGI, or another guarantor.
- After paying the balance and moving in, register your address and obtain a legally certified date as quickly as possible.
- Consider special contract clauses covering a change of landlord, additional secured borrowing, and deposit-return insurance.
- Check each maintenance-fee item and recent actual payments, then add them to the monthly housing cost.
The Shift From Jeonse to Monthly Rent: FAQ
Does “seven out of 10 leases are monthly rent” refer to the whole country?
Yes. It is an everyday description of the 68.3% monthly-rent share among all home leases reported nationwide from January through July 2026. Seoul’s share was 69.7%, and the figure varies widely by region and housing type.
Is banjeonse included in the monthly-rent statistics?
Yes. Banjeonse and other deposit-backed leases are classified as monthly rent if they require any monthly payment.
Are 70% of apartment leases also monthly rent?
No. The 68.3% figure covers all homes nationwide, including both apartments and non-apartments. The monthly-rent share is lower for apartments, while it reaches 80.4% for non-apartment housing nationwide.
Can we say jeonse fraud caused the rise in monthly rent?
Jeonse fraud is an important reason tenants have avoided jeonse, especially for non-apartment housing, but it is not the only one. Jeonse prices, lending rules, supply, interest rates, and landlord choices also matter.
Will a higher base rate reduce the monthly-rent share?
Not necessarily. Higher deposit returns may make jeonse more attractive to landlords, but higher jeonse-loan interest can increase the burden on tenants and push them toward monthly rent. The final market outcome reflects both effects as well as lending rules and housing supply.
Is every monthly rent above the 5% conversion rate illegal?
No. As of September 1, 2026, the statutory 5% cap applies when an existing deposit is converted into monthly rent. It is separate from the pricing of a newly signed monthly-rent contract.
Is jeonse always cheaper than monthly rent?
No. Jeonse-loan interest, guarantee premiums, the opportunity cost of your own money, and deposit-repayment risk need to be compared with monthly rent and any tax credit.
Does more monthly rent automatically mean home prices will rise?
The monthly-rent share alone cannot predict home prices. The shift concerns the structure of rental contracts, while sale prices are affected by many more variables, including interest rates, income, supply, lending, and buyer sentiment.
Will jeonse eventually disappear completely?
It is unlikely to disappear completely in the short term. High-risk jeonse in non-apartment housing may keep declining, however, while banjeonse contracts that convert part of the deposit into monthly rent may continue to grow.
This Is a Reshaping of Rental Contracts, Not Simply the End of Jeonse
The 68.3% nationwide monthly-rent share from January through July 2026 shows how quickly Korea’s once jeonse-centered rental market is changing. The fact that monthly rent exceeds 80% for non-apartment housing is an important sign that confidence in deposit safety is changing the way leases are structured.
That does not mean jeonse is about to disappear. Demand can remain among households able to afford a large deposit and secure a safe property, particularly in the apartment market. Going forward, choosing between jeonse and monthly rent will matter less than calculating the right combination of deposit, monthly payment, loan interest, and repayment risk for your own situation.
Official Sources
- Ministry of Land, Infrastructure and Transport, July 2026 Housing Statistics
- Korea Real Estate Board, Nationwide Housing Price Trends for July 2026
- Bank of Korea, Base Rate History
- Korean Law Information Center, Article 7-2 of the Housing Lease Protection Act
- Ministry of Land, Infrastructure and Transport and Korea Policy Briefing, Safe Jeonse and Monthly Rent Trust
Information current as of September 1, 2026
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