Korean Rent Cap Calculator

Verify Korean Housing Lease Act 5% rent cap on renewal. Deposit-monthly conversion + within-cap recommendation.

Verification

Enter current and proposed terms.

What this tool does

The Korean rent cap calculator verifies whether a proposed rent increase at lease renewal complies with Article 8 of the Housing Lease Act Enforcement Decree, which caps annual increases at 5%. For mixed deposit + monthly rent leases, the calculator uses the conversion rate (Article 9, BoK base rate + 2%) to compute an equivalent deposit before applying the 5% cap. Tenants can verify whether a landlord's proposal exceeds the legal limit; landlords can simulate maximum deposit-only or rent-only increases within the cap.

Who uses this

Tenant: instantly verify whether the landlord's renewal proposal exceeds 5%
Landlord: simulate which side to increase (deposit or rent) within the cap
Real estate agent: provide objective limits during renewal negotiations
Deposit ↔ rent conversion: compare options on an equivalent-deposit basis
Dispute prevention: establish a legal reference when contesting an over-cap notice

How to use (5 steps)

1Enter the current deposit and current monthly rent in won. Pure jeonse: rent = 0. Pure monthly: deposit = 0.
2Enter the landlord's proposed deposit and proposed monthly rent. Either or both can be changed.
3Confirm the conversion rate. As of 2026-05 it's about 5.0% (BoK base 3.0% + 2%). Update if the base rate changes.
4The cap defaults to 5%. Some local ordinances may set a lower cap (e.g., 4% in certain districts) — adjust if applicable.
5Click Verify. You'll see the increase rate, pass/fail status, excess or remaining amount, and the maximum deposit-only or rent-only increase that would stay within the cap.

Equivalent deposit formula (Article 9)

Equivalent deposit = deposit + (monthly rent × 12 / conversion rate) Example: deposit KRW 50M + monthly KRW 500K at 5% conversion = 50M + (500K × 12 / 0.05) = 50M + 120M = KRW 170M 5% cap = current equivalent deposit × 1.05 Example: 170M × 1.05 = KRW 178.5M If the proposed equivalent deposit ≤ cap → within limit If above cap → tenant may exercise renewal rights and reject the excess

Real examples

Example 1: KRW 500M jeonse → landlord proposes KRW 530M (+6%)

Equivalent deposit = KRW 500M (no rent). Cap = KRW 525M. Proposal = KRW 530M → KRW 5M over. Tenant exercising renewal rights accepts up to KRW 525M. If refused, the dispute mediation committee can be petitioned.

Example 2: KRW 100M + KRW 800K monthly → landlord wants KRW 120M + KRW 800K

Current equivalent = 100M + (800K × 12 / 0.05) = 100M + 192M = KRW 292M. Cap = KRW 306.6M. Proposed equivalent = 120M + 192M = KRW 312M → KRW 5.4M over. Within cap, deposit could go up to KRW 114.6M (rent unchanged).

Example 3: Rent KRW 500K → KRW 530K (+6%)

Deposit KRW 50M + rent KRW 500K. Equivalent KRW 170M. Cap KRW 178.5M. New equivalent (rent KRW 530K) = 50M + (530K × 12 / 0.05) = 50M + 127.2M = KRW 177.2M < KRW 178.5M → within cap. A 6% rent increase translates to only ~4.2% on the equivalent basis.

Lease contract & tenant-rights checklist for foreigners

Securing your deposit at signing

File a move-in report; as a foreigner you must file the 체류지 변경신고 (change-of-residence report) within 14 days of moving, at immigration or the gu/dong office.
Foreigners are NOT automatically covered by the Housing Lease Protection Act — the 체류지 변경신고 is what gives your ARC the same legal effect (court precedent 93가합73367).
Get the 확정일자 (fixed-date stamp, ~₩600) the same day — it sets your deposit's repayment priority (우선변제권).
Note the timing: 대항력 (opposability) and 우선변제권 start at 00:00 the day AFTER you register and occupy, so a same-day landlord mortgage can outrank you.
Never move your 체류지 변경신고 to another address during the lease — it instantly destroys your priority.

Renewal rights & rent-increase cap

You have a one-time Contract Renewal Request Right (계약갱신청구권) for a 2-year extension; the landlord can refuse only on limited grounds (e.g., owner/family will move in).
On renewal, any increase to deposit OR rent is capped at 5% (the cap applies to renewals, NOT to brand-new contracts).
Give or receive a renewal-or-termination notice between 6 and 2 months before expiry (post-2020 amendment — verify).
If no notice is given in that window, the lease auto-renews on the same terms (묵시적 갱신, implied renewal).
Under implied renewal you may terminate anytime with 3 months' written notice, and the deposit is refunded at the end of that period.

Costs, fees & documents

Use the government Standard Lease form (표준임대차계약서); put the deposit, rent, dates, 관리비, and any verbal promises in writing.
Verify the broker fee (중개보수) against the legal ceiling — 0.3–0.5% for housing leases; it is a maximum and is negotiable, and a 'foreigner surcharge' is illegal.
Confirm exactly what 관리비 covers versus what is billed separately (electricity, gas, water) — in writing.
Pay the deposit by bank transfer to the registered owner's account only (matching the 등기부등본) — never cash or a third party.
Since June 2025, a deposit over ₩60M or rent over ₩300,000 must be reported (임대차 신고) within 30 days, which auto-issues the 확정일자.

Disputes & where to get help

For a disputed deposit return or rent increase, file with the Housing Lease Dispute Mediation Committee (주택임대차분쟁조정위원회) — free or low-cost.
File the 체류지 변경신고 online via HiKorea or in person with your passport, ARC, and the lease.
Keep the stamped lease, the bank-transfer record, and registration receipts together — they are the proof your priority relies on.
This is general guidance, not legal advice — confirm current thresholds and deadlines with MOLIT or a licensed agent/attorney.

Frequently asked questions

Does the 5% cap apply to all leases?

Only when the tenant exercises the renewal right (6 to 1 months before lease end). It does not apply to new contracts, implied renewals, or when the landlord has a legitimate refusal reason (such as personal occupancy).

Can the landlord refuse renewal claiming personal occupancy?

Yes, if the landlord or their direct family will actually live there. However, if they falsely refuse and lease to someone else within 2 years, the tenant can claim damages.

How many times can renewal rights be exercised?

Once after the initial contract, granting an additional 2 years. So 2 years initial + 2 years renewal = 4 years total guaranteed by law.

How is the conversion rate set?

Article 9 sets it at 'BoK base rate + 2%'. If the base rate is 3.0%, the conversion rate is 5.0%. Check the Bank of Korea's website for the current base rate and update the calculator.

Can I raise only the deposit and keep rent the same?

Yes. The calculator shows the maximum deposit when rent is unchanged. A deposit increase of 6-7% can still comply if the equivalent-basis change stays under 5%.

I already received an over-cap notice — what now?

1) Send a formal renewal-rights notice in writing (certified mail). 2) State your acceptance of the within-cap amount. 3) If the landlord refuses, petition the housing dispute mediation committee.

Can local ordinances set a lower cap?

Yes — Article 8 defines '5% or less', allowing local ordinances to lower it. Some districts apply 4% or less. Check your local government's ordinance.

Cautions

•This tool verifies the renewal-time cap. New contracts are not subject to the 5% rule.
•The conversion rate varies with the BoK base rate — enter the latest value.
•Local ordinances may set a stricter cap. Check your district's rules.
•The landlord's legitimate refusal reasons (personal occupancy, demolition, tenant breach) override renewal rights.
•Results are for reference. Legal force comes from the dispute committee or court decision.