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

Confused about Korea’s real estate brokerage fee (복비)? Learn how it’s calculated, average costs in Seoul, and tips to avoid overpaying. A must-read for expats.

Evan Han
Evan Han
CEO & Founder of FOHO, a housing platform for foreigners in Korea. Experienced in rental market trends, proptech innovation, and foreign tenant support.
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Korea Rental Guide 2025: How Brokerage Fees (복비) Really Work for Foreigners

Table of contents

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

If you’ve just arrived in Korea and you’re trying to rent an apartment or officetel, you’ll likely encounter a cost called brokerage fee, or “복비”. For locals, it’s an accepted part of renting or buying property. But for foreigners, it often comes as an unpleasant surprise — partly because the rules are complicated, partly because brokers don’t always explain them clearly.
This article is a complete, field-tested guide for foreigners navigating brokerage fees in Korea. We’ll cover how fees are calculated, what the law says, what real foreigners have experienced, and how to protect yourself from overcharging.

1. Why Brokerage Fees Confuse So Many Renters

In most countries, agency fees are simple: a flat one month’s rent, or a small percentage of the deal. In Korea, however, it depends on a mix of deposit, rent, property type, and regional regulations. Add to this the language barrier and you get a recipe for misunderstanding.
  • 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

The Ministry of Land, Infrastructure and Transport (MOLIT) regulates brokerage fees through the Licensed Real Estate Agents Act and municipal ordinances.
  • 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.
This “×70 rule” exists to reduce the burden on low-income tenants (many of them students or foreign workers).

3. The Current Rate Table (Seoul, 2025)

Transaction Amount (KRW)
Max Rate
Fee Cap
Tenant’s Max Share
< ₩50M
0.5%
₩200,000
₩200,000
₩50M–₩100M
0.4%
₩300,000
₩300,000
₩100M–₩300M
0.3%
₩700,000
₩700,000
₩300M–₩600M
0.4%
No cap
Based on %
₩600M+
0.8%
No cap
Based on %
👉 Don’t forget: add 10% VAT to whatever number you calculate.

4. Real-Life Rent Examples

Based on 2024 averages in Seoul (National Housing Survey & actual rental listings), here’s what foreigners typically pay:
Housing Type
Deposit
Monthly Rent
Transaction Value
Bracket
Fee (Excl. VAT)
Final Fee
Small Studio
₩5M
₩500K
₩55M
₩50–100M
₩220K → capped ₩300K
₩330K
Mid-size Officetel
₩10M
₩700K
₩80M
₩50–100M
₩320K → capped ₩300K
₩330K
Two-room Apt.
₩20M
₩900K
₩110M
₩100–300M
₩330K
₩363K
New Apt. (small)
₩50M
₩1.2M
₩170M
₩100–300M
₩510K
₩561K
👉 For a typical officetel in Seoul (₩10M deposit + ₩700K rent), your legal maximum fee is ₩300K + VAT, or ₩330K.

5. Regional Variations

While most cities now follow the same national cap (after the 2021 reform), a few municipalities (e.g., parts of Gyeonggi-do, Busan, and Jeju) briefly had different ceilings before harmonization. Always check the local city hall website for the exact table — it’s usually available in Korean, sometimes with English summaries.
For foreigners renting outside Seoul, landlords sometimes quote old rates out of habit. Politely ask: “Is this based on the 2021 revised table?” to ensure you’re not paying outdated fees.

6. Special Case: Officetels

Officetels are a gray area:
  • 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%.
⚠️ Many foreigners don’t realize the difference and are charged the higher rate unnecessarily. Confirm the officetel’s classification on the contract.

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

Korean
“중개보수는 관련 법령 및 조례에 따른 요율 한도 내에서 협의하며, 당사자 쌍방은 각자 부담한다. 부가가치세는 별도이다.”
English
“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.”
Including this in the contract in both languages protects you.

11. Quick Checklist ✅

Confirm transaction amount calculation
Check the correct bracket in the official table
Negotiate — the cap is not mandatory
Clarify VAT early
Demand a receipt or card payment
Verify officetel classification
Ensure contract wording includes fee rules

FOHO Can Simplify It All

Managing housing costs in Korea can feel overwhelming — especially when fees, deposits, and utilities are all explained in Korean legal jargon.
That’s where FOHO makes a difference. We help you understand what each option really means, verify listings, handle paperwork, and communicate with landlords — so you avoid costly mistakes and stay focused on what brought you to Korea in the first place.
 

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