Jeonse–Monthly Rent Converter
Convert between jeonse and monthly rent.
Default = base rate + conversion spread.
Converted monthly rent
416,667원
The statutory cap is the lower of (base rate + 2%p) and 10%. Verify the cap for your contract.
Calculate brokerage fee for this lease →What is the jeonse-monthly conversion rate?
It is the annualized rate used to convert part of a jeonse (lump-sum) deposit into monthly rent, or vice versa.
How it's calculated
Jeonse → Monthly: monthly rent = converted amount × rate ÷ 12; remaining deposit = jeonse − converted amount.
Monthly → Jeonse: jeonse-equivalent = monthly rent × 12 ÷ rate.
Statutory cap
Worked examples (5.0% conversion rate)
Example 1. Converting 100M KRW of a 300M KRW jeonse deposit to monthly rent (5.0% rate).
- Monthly rent = 100,000,000 × 5.0% ÷ 12 = 416,667 KRW
- Remaining deposit = 300M − 100M = 200,000,000 KRW
Example 2. Converting 600,000 KRW monthly rent to a jeonse-equivalent (5.0% rate).
- Jeonse-equivalent = 600,000 × 12 ÷ 5.0% = 144,000,000 KRW
Statutory cap by base rate
The statutory cap = the lower of BOK base rate + 2%p and 10%.
| BOK base rate | Statutory cap |
|---|---|
| 2.0% | 4.0% |
| 2.5% | 4.5% |
| 3.0% (calculator default) | 5.0% |
| 3.5% | 5.5% |
The calculator's default rate (5.0%) uses the 3.0% base rate set on 2026-08-27 plus the 2%p spread. Re-check with the current BOK base rate at the time of your contract.
Where the statutory conversion rate actually binds
A statutory cap exists, but it does not govern every conversion. It binds only when an existing contract is varied — not when a new one is signed.
When it applies, and when it does not
The cap applies when converting all or part of a jeonse deposit into monthly rent — typically when a landlord proposes converting part of the deposit at renewal. Rent above the cap cannot be demanded.
It does not apply to a property newly listed for monthly rent: terms of a new contract are for the parties, and market rates can imply a higher effective conversion.
Nor does it apply in the opposite direction, converting rent back into a deposit. The law restrains only increases in the tenant's burden.
The cap is the lower of two figures
The statutory cap is the lower of two figures: a rate set by decree, and the Bank of Korea base rate plus a fixed margin. When the base rate is low, the latter governs.
The base rate moves eight times a year, so the cap moves with it — check the rate at the date of variation. The table above shows how the cap shifts.
The arithmetic is simple: multiply the deposit being converted by the annual rate for a year's rent, then divide by twelve. Remember it is a ceiling, not a required figure.
If the agreed rent exceeds the cap
Any excess over the cap is void, and amounts already paid can be reclaimed as unjust enrichment — a signed contract does not validate terms beyond the statutory ceiling.
Disputes can go to a housing lease dispute mediation committee, which is inexpensive; a successful mediation has the effect of a judicial settlement.
Where conversion is proposed alongside a renewal request, the separate 5% ceiling on rent increases also applies, so the combined burden must respect both limits.
Legal basis
- Conversion rate cap — Housing Lease Protection Act art. 7-2
- Limit on rent increases — art. 7
- Right to request renewal — art. 6-3
- Dispute mediation — art. 14