Korea Rental Guide 2025: How Brokerage Fees (복비) Really Work for Foreigners

Understanding Korea’s Real Estate Brokerage Fees (복비): A Foreigner’s Complete Guide

1. Why Brokerage Fees Confuse So Many Renters

• Different rules for different properties: A studio, officetel, and apartment can each fall into different fee brackets.

• Negotiable, but not explained: The law sets a maximum cap, not a fixed amount. Yet many brokers present it as non-negotiable.

• Receipts are rare: Without a tax invoice, it’s hard to prove what you paid. This leads to disputes when foreigners later realize they paid too much.

2. The Legal Basis: What the Law Says

• Fee = Transaction Amount × Rate (within cap)

• Transaction Amount (for rentals) = Deposit + (Monthly Rent × 100)

• Special rule: If this sum is under ₩50,000,000, then use Rent × 70 instead of ×100.

3. The Current Rate Table (Seoul, 2025)

4. Real-Life Rent Examples

5. Regional Variations

6. Special Case: Officetels

• Residential officetels (under 85㎡, with kitchen & bathroom) → Treated as homes, lower rate (0.4%).

• Commercial officetels (larger or not fully equipped) → Higher rate, up to 0.9%.

7. When and How to Pay

• Timing: By law, the fee is due when final payment is made (move-in day). If asked at the contract signing, you can decline.

• Who pays: Both landlord and tenant each pay their share. The broker cannot legally demand the full amount from just one party.

• VAT: Always confirm if the quote includes VAT. “₩300K fee” often means ₩330K with tax.

8. Common Pitfalls for Foreigners

Overcharging

• A U.S. student renting a ₩10M + ₩700K officetel was charged ₩600K. After showing the Seoul rate table, the broker reduced it to ₩330K.

No Receipt

• A European expat paid cash, no receipt. When he later discovered the fee was double the cap, he had no proof to reclaim it. Always ask for a receipt or tax invoice.

Language Gaps

• Many contracts say “중개보수는 법령에 따른다” (brokerage fee follows the law). For non-Korean speakers, this looks vague. Having the exact English translation in the contract avoids disputes.

9. Negotiation Tips

• Anchor with the law: Say “I understand the legal maximum is ₩300K for this bracket. Can we agree closer to that?”

• Bundle with trust: If you’re a long-term tenant, emphasize stability — brokers often prefer guaranteed tenants over squeezing extra fees.

• Ask upfront: Before viewing, ask “How much would the fee be if I take this place?” That avoids surprises at contract time.

10. Sample Contract Language

“중개보수는 관련 법령 및 조례에 따른 요율 한도 내에서 협의하며, 당사자 쌍방은 각자 부담한다. 부가가치세는 별도이다.”

“The brokerage fee shall be determined by mutual agreement within the legal maximum rate stipulated by law and ordinance. Each party pays their own share. VAT is charged separately.”

11. Quick Checklist ✅

FOHO Can Simplify It All