Jeonse ↔ Monthly Rent Conversion Calculator
Deposit to rent and rent to deposit, at the legal cap — with the cap taken apart so you can see where it comes from.
For reference only, not legal advice. Check the Bank of Korea base rate again at the time of the contract or conversion. The statutory cap applies to conversions within an existing lease; disputes go to the Housing Lease Dispute Conciliation Committee or the Korea Legal Aid Corporation.
Housing only — commercial leases follow a different Act and are not computed here.Act art. 7-2 ·Decree art. 9
How to use
- Check the base rate shown against the Bank of Korea link; type today’s rate if it has changed.
- Deposit → rent: enter the current deposit, how much stays as deposit, and any rent you have been offered. Rent → deposit: enter the monthly rent.
- Read the monthly cap or the equivalent deposit. A rate above the cap, or an offer above the cap, is flagged.
Examples
₩300,000,000 jeonse, ₩100,000,000 to stay as deposit
₩200,000,000 is converted. With a base rate of 3.00% the cap is 5.00% a year, so the most that can be asked is 200,000,000 × 5% ÷ 12 = ₩833,333 a month. An offer of ₩900,000 is ₩66,667 over the cap; ₩800,000 is within it.
Converting all of a ₩120,000,000 deposit
Nothing kept, so the whole ₩120,000,000 converts: at 5.00% that is ₩500,000 a month. The same figure going the other way — ₩500,000 a month at 5% — comes back to ₩120,000,000 of deposit.
What a rent is worth as deposit
Monthly rent of ₩500,000 at 5.00% equals ₩120,000,000 of deposit. If ₩100,000,000 stays as deposit, the lease is worth ₩220,000,000 as jeonse — the number to compare against a straight jeonse offer for the same home.
Where the cap comes from
Two candidates: the base rate plus 2 points, and a flat 10%. The lower one applies. At a 3.00% base rate that is 5.00% versus 10%, so 5.00%. The 10% ceiling would only bind if the base rate went above 8%.
FAQ
What is the statutory conversion cap?
Under art. 7-2 of the Housing Lease Protection Act, when a deposit is converted to monthly rent the rent may not exceed the deposit converted multiplied by the lower of two annual rates set by the Enforcement Decree (art. 9): the Bank of Korea base rate plus 2 percentage points, or 10%. The calculator shows both and which one applies.
When does the cap apply?
To a conversion inside an existing lease — turning some or all of the deposit into monthly rent during the term or at renewal. A brand-new lease is priced by agreement; the cap does not set the rent of a new contract. Which situation you are in changes whether the figure here is a legal limit or just a benchmark.
Where does the base rate come from, and is it current?
The Bank of Korea sets it at Monetary Policy Board meetings, eight a year. The page shows the rate it uses with the decision date and the date it was checked against the BOK history table, which is linked. If the Board has met since, type the new rate — the cap follows it.
Does it work for shops or offices?
No. Commercial premises fall under the Commercial Building Lease Protection Act, which has a different conversion rule, and this tool does not compute it. Housing only, officetels used as housing included.
The rent I was offered is above the cap. Then what?
The calculator only tells you by how much. What that means for your contract, and what to do about it, is a legal question: the Housing Lease Dispute Conciliation Committee (주택임대차분쟁조정위원회) and the Korea Legal Aid Corporation handle exactly this. This page is not legal advice.
Why divide by 12?
The rate is annual: deposit × rate is a year of rent, and a twelfth of it is a month. Going back, twelve months of rent divided by the rate is the deposit those payments stand in for.
Why is the monthly figure truncated?
Because it is a cap. Rounding ₩833,333.33 up to ₩833,334 would state a limit one won above the legal one. The equivalent-deposit figure is rounded normally, since it is not a limit.