Got a Korean rent increase over 5%? 7 things to do immediately

A text arrives: “Please accept a 6% deposit increase at renewal.” If you know about Korea's 5% rule, your head fills with questions. “That's over the cap, right? Will I get kicked out if I refuse? Should I just accept?” The answer is firm: do not accept blindly; follow the proper process. Here's the sequence.

1. Compute the equivalent deposit first

For pure jeonse (deposit only) or pure monthly rent, comparison is direct. For mixed leases, you must convert to the equivalent deposit:

The conversion rate is BoK base rate + 2% — currently around 5.0%. Punch both your current and proposed amounts into the rent cap calculator and you'll see the increase rate, pass/fail status, and the excess amount immediately.

2. Confirm you have the right to exercise the renewal

The 5% rule applies only when you exercise the renewal right. Conditions:

• Notice given 6 to 1 month before lease end
• Never exercised the renewal right before (one-time only)
• Landlord has no legitimate refusal reason in force

If all three hold, the tenant can demand renewal within the 5% cap. The landlord cannot refuse without legitimate cause.

3. Notify by certified mail (내용증명)

Text messages alone are weak evidence later. Use Korean certified mail (내용증명우편) stating:

• You exercise the renewal right per the Housing Lease Act
• The landlord's proposal exceeds the 5% cap (Article 8)
• You will accept the amount within the cap (state the exact figure)
• Request a response within 14 days

Certified mail costs about KRW 3,000 at any post office. Three copies are kept (you, landlord, post office) — strong legal evidence.

4. If refused, take it to the dispute committee

If the landlord says “6% or no renewal,” immediately petition the housing dispute mediation committee. The application fee is free or about KRW 10,000. Typical resolution within 60 days.

The committee hears both sides and rules on the 5% cap. Tenants usually win — the law is clear. If the landlord refuses the mediation, you can sue, and courts reach the same conclusion.

5. The “personal occupancy” card — verify it's real

The most common legitimate refusal is the landlord or their direct family moving in. If this is played, the tenant cannot exercise the renewal right.

However, if the landlord falsely claims occupancy and leases to someone else within 2 years, the tenant can claim damages — typically a year's rent or a percentage of the new tenant's rent. If suspicious, check the property registration and resident records a few months later.

6. Negotiate via deposit-only or rent-only increases

Because the cap is on equivalent deposit, you can negotiate raising only deposit or only rent. The rent cap calculator shows the maximum deposit when rent is unchanged, and vice versa. Use whichever the landlord prefers as a negotiation card.

7. What happens after the 2-year renewal

The renewal right is exercisable once per initial contract. So 2 years initial + 2 years renewal = 4 years guaranteed by law. After year 4, you sign a new contract at market rate — the 5% rule does not apply to new contracts.

Prepare your next residence or next contract during the 2-year renewal. Implied renewals (auto-renewal when neither side acts) may still leave the renewal right available — case law is split. Check with the dispute committee before relying on this.

Wrap-up

The 5% cap exists to protect tenants. Don't accept a notice blindly — verify your rights first. The rent cap calculator gives you the answer in seconds. Comparing rents by area? Use the pyeong ↔ m² converter too.

General guidance only. Specific cases should be reviewed by a Korean lawyer or dispute mediation committee. Local ordinances may set a stricter cap than 5%.