How to Read the Brokerage Fee Rate Table
Brokerage fees are a ceiling, not a fixed price
The first misconception to correct about brokerage fees: the numbers in the rate table below are not a fixed price you must pay, but a legal ceiling. A broker cannot charge above this cap, but within it, the broker and client are free to negotiate a lower amount. The exact rate and cap figures are also set by each city/province’s ordinance, based on the Ministry of Land’s standard framework, and can differ slightly by region — always check the ordinance where the property sits. The table below reflects Seoul’s ordinance as a representative example.
Sale fee table — every band
| Transaction value | Cap rate | Cap amount |
|---|---|---|
| 5천만원 미만 | 0.6% | 25만원 |
| 5천만원 이상 ~ 2억원 미만 | 0.5% | 80만원 |
| 2억원 이상 ~ 9억원 미만 | 0.4% | None |
| 9억원 이상 ~ 12억원 미만 | 0.5% | None |
| 12억원 이상 ~ 15억원 미만 | 0.6% | None |
| 15억원 이상 | 0.7% | None |
Sales have a distinctive feature: the rate rises again once you pass 900,000,000 KRW. It drops to 0.4% for the 200M–900M band, then climbs step by step to 0.5% (900M–1.2B), 0.6% (1.2B–1.5B), and 0.7% above 1.5B. Only the bottom two bands carry a fixed cap amount (250,000 / 800,000 KRW); above that, only the raw rate applies with no cap amount.
Lease fee table — every band
| Transaction value | Cap rate | Cap amount |
|---|---|---|
| 5천만원 미만 | 0.5% | 20만원 |
| 5천만원 이상 ~ 1억원 미만 | 0.4% | 30만원 |
| 1억원 이상 ~ 6억원 미만 | 0.3% | None |
| 6억원 이상 ~ 12억원 미만 | 0.4% | None |
| 12억원 이상 ~ 15억원 미만 | 0.5% | None |
| 15억원 이상 | 0.6% | None |
A 500M KRW jeonse deposit — the actual fee
Take a 500,000,000 KRW jeonse deposit as an example. It falls in the lease table’s “100M to under 600M” band (0.3%), so the cap fee is 500,000,000 × 0.3% = 1,500,000 KRW. If the same amount were a sale instead of a lease, the sale table’s “200M to under 900M” band (0.4%) would apply: 500,000,000 × 0.4% = 2,000,000 KRW — the same amount produces a different cap depending on transaction type. One caution: boundary values belong to the upper band — the moment a deposit reaches exactly 600,000,000 KRW, the lease rate steps up to the 0.4% band and the cap becomes 2,400,000 KRW. Either way, this is a ceiling, and the actual fee can be negotiated lower with the broker.
A ceiling, not a fixed price — why this matters
Much of the friction around brokerage fees starts with the assumption that “the table amount must be paid in full.” In reality, brokers and clients can freely negotiate within the cap, and agreeing to less than the ceiling — based on deal size, complexity, or timing — is not unusual. Any agreed amount above the cap is void, and if you’re asked to pay more than the cap, you can report it to your local district or city office’s real estate brokerage division.
Local ordinances govern — rates can differ by region
This guide’s table uses Seoul’s ordinance, but the specific rate and cap for brokerage fees are set by each city/province via ordinance, based on the Ministry of Land’s standard framework. Most regions adopt rates identical or similar to the standard, but you should always check the ordinance for the province where the property sits before a deal — searchable on Wetax or your local government’s site.
When is the fee paid — the balance date sets the timing
Payment timing is set by Article 27-2 of the Licensed Real Estate Agents Act Enforcement Decree: it follows whatever the broker and client agreed; absent an agreement, it is the day the transaction payment is completed. In practice that usually means the balance-payment date. If a deal falls through midway with no fault on the broker’s part, there is, in principle, no obligation to pay the fee. Exceptions — such as the deal collapsing due to the client’s own actions — can trigger disputes, so it helps to spell out the payment timing and conditions clearly in the agreement.
Starting the negotiation — practical tips
To negotiate within the cap, a natural starting point is proposing your desired amount or rate to the broker before the deal closes. Higher-value deals leave more room to negotiate since the absolute amount is larger, and listing with multiple agencies at once (co-brokerage) can create competition that strengthens your position. Conversely, hard-to-lease listings or deals needing a fast close may see brokers push closer to the cap, so a flexible, situation-by-situation approach is the realistic path.
How fees split under co-brokerage
When the seller’s broker and buyer’s broker are different firms (co-brokerage), each collects a fee from their own client, and neither side’s fee may exceed the cap rate on its own. The seller’s and buyer’s fees are judged separately, each capped by the rate for its own transaction amount. How the two brokers split compensation between themselves is arranged privately beforehand and isn’t something clients need to manage.
When does the fee cap get revised
The brokerage fee cap is periodically reviewed by the Ministry of Land and each city/province as market conditions change. Past revisions have, for example, lowered the rate for the 600M–900M KRW sale band, and future ordinance changes could shift the bands or rates again. If a deal is coming up, checking the ordinance in force at the time of the deal takes priority over this guide’s table.
Related guide
To calculate the fee directly, use the brokerage fee calculator; to estimate acquisition tax alongside a sale, try the acquisition tax calculator. This guide reflects information as of 2026-07-19; ordinances vary by region and can change, so confirm exact amounts with the Ministry of Government Legislation’s Easy Law portal and a licensed realtor.