The short answer: jeonse and wolse are not legally different arrangements. They are the same residential lease with a different ratio between the deposit and the monthly rent. Jeonse is a lease in which the tenant places a large lump-sum deposit with the landlord and pays no monthly rent; wolse is a lease with a smaller deposit plus monthly rent. Both are governed by the same opposing power, priority repayment, lease term and renewal rules of the Housing Lease Protection Act. The difference lies in how much cash passes to the landlord at signing — in other words, how much of the deposit is exposed. For assignee housing, the length of the assignment, who funds the deposit and whose name is on the lease drive the choice. This article reflects the statutory provisions in force as of October 2026.
- Jeonse is one large deposit; wolse is a smaller deposit plus monthly rent. The governing law is the same.
- Deposit protection is completed by delivery of the home + address registration (for foreign nationals, alien registration and the report of change of place of stay) + a fixed date.
- When a deposit is converted into monthly rent, the cap is the lower of 10 percent a year and the base rate plus 2 percent a year.
- The lease term is deemed to be at least two years, and the tenant may demand one renewal.
- Opposing power for a lease in a company's name is recognized only for small or medium enterprise corporations.
What is the difference between jeonse and wolse?
Under jeonse, the tenant entrusts a large deposit to the landlord and pays no monthly rent. Under wolse, the tenant pays a smaller deposit and monthly rent instead. In practice, a mixed arrangement combining a deposit and monthly rent (often called semi-jeonse) is also common. The law does not distinguish between these ratios.
| Item | Jeonse | Wolse |
|---|---|---|
| Cash at signing | Large deposit paid in a lump sum | Smaller deposit |
| Monthly cost | No rent (maintenance fees separate) | Monthly rent |
| Risk of the deposit being tied up | High — the full amount sits with the landlord | Relatively low |
| Nature in company accounts | An asset to be returned | A monthly expense |
| Governing law | Both: Housing Lease Protection Act | |
What people commonly call jeonse is, in most cases, an unregistered lease. The jeonse right under Article 303 of the Civil Act is a separate real right that requires registration, so writing "jeonse" in a lease contract does not by itself create a jeonse right.
How is the deposit protected under jeonse or wolse?
Protection works in two layers: first opposing power, then priority repayment.
Foreign nationals do not complete resident registration. Instead, Article 88-2(2) of the Immigration Act provides that alien registration and the report of change of place of stay take the place of resident registration and the moving-in report. That is why deposit protection for an assignee only begins once the immigration steps are done. The full sequence is set out in our guide to alien registration after arrival in Korea.
If the deposit is converted into monthly rent, how much rent can be charged?
When part of the deposit is converted into monthly rent during the lease, the law caps the conversion rate.
Because the base rate changes, the actual cap has to be recalculated using the base rate in effect at the time of conversion.
How do the lease term and renewal work?
A lease with no fixed term, or with a term of less than two years, is deemed to be for two years (Article 4(1)). However, the tenant may assert that a term shorter than two years is valid, so a one-year lease can be used for a one-year assignment.
If the landlord does not give notice refusing renewal between six months and two months before the lease ends, the lease is renewed for two years on the same terms (Article 6). A lease renewed in this way may be terminated by the tenant at any time by notice, and the termination takes effect three months after the landlord receives the notice (Article 6-2). Within the same period, the tenant may demand renewal of the lease once, and the renewed term is two years (Article 6-3). An increase may not be claimed within one year of the contract or the previous increase, and may not exceed one-twentieth of the agreed rent or deposit. Within that range, however, a city or province may set a different cap by ordinance (Article 7).
What criteria should guide the choice of assignee housing?
In housing consultations, KOCATION first checks five criteria.
- Length of assignment — With two years or more, jeonse can be considered. Around one year, the deposit return schedule easily collides with the departure date.
- Who funds it — If the company pays the deposit, it is an asset to be returned; wolse is a monthly expense. The internal approval structure often decides the choice.
- Name on the lease — Opposing power for a lease in a company's name is recognized only where a small or medium enterprise under the Framework Act on Small and Medium Enterprises leases the home for an employee's residence (Article 3(3)). If the company belongs to a large business group, a lease in the individual's name is considered as well.
- Deposit exposure — The more existing security interests a home carries, the riskier a large deposit becomes. Check the property register before signing.
- Departure timing — If the assignee may need to leave Korea after the lease ends but before the deposit is returned, learn about the order to register the lease right in advance. We cover it in [common deposit protection issues for foreign tenants](/en/blog/deposit-protection-issues).
What should a foreign tenant check before signing?
When entering into the lease, the landlord must present to the tenant the fixed date, rent and deposit information on that home, together with national and local tax payment certificates (Article 3-7). The landlord may instead consent to the tenant viewing that information. A prospective tenant may also, with the landlord's consent, request that information on the home directly from an authority that grants fixed dates (Article 3-6(4)).
A residential lease above a certain amount must be reported within 30 days of the contract date, and once the contract is submitted and the report is accepted, the lease is deemed to have received a fixed date (Act on Report on Real Estate Transactions, Articles 6-2 and 6-5). The amounts and regions subject to reporting are set by Enforcement Decree, so confirm them at the time of contract.
How far does KOCATION help?
KOCATION is the relocation brand of VISION Administrative Office. Within the scope of an administrative agent's work, we prepare and file alien registration and report of change of place of stay documents, accompany the tenant through the fixed date procedure, and summarize the lease terms in the language the company reads. Introducing and brokering properties is the work of licensed real estate agents who have registered a brokerage office under the Licensed Real Estate Agents Act, so we do not do it ourselves. Representation in litigation, such as a claim for return of the deposit, is also outside the scope of an administrative agent's work.
Frequently asked questions
Q. Which is legally safer, jeonse or wolse? The governing law is the same. With jeonse, however, the entire deposit goes to the landlord, so the potential loss is much larger if opposing power and a fixed date are not in place.
Q. The assignment is for one year. Do we have to sign a two-year lease? No. The tenant may assert that a term shorter than two years is valid (Article 4(1)). Agree on a one-year term with the landlord in advance, however.
Q. Can a foreign national obtain a fixed date? Yes. The fixed date is stamped on the lease contract by an authority that grants fixed dates, such as a community service center, a registry office or a notary. The requirements for opposing power are met through alien registration and the report of change of place of stay.
Q. Is the deposit protected if the company signs a jeonse lease in its own name? Opposing power is recognized only where a small or medium enterprise under the Framework Act on Small and Medium Enterprises leases the home for an employee's residence and that employee has taken delivery and completed address registration (Article 3(3)). Other corporations do not receive the protection of this provision.
Q. What if the landlord asks to convert part of the deposit into monthly rent during the lease? The monthly rent cap is the converted sum multiplied by the lower of 10 percent a year and the base rate plus 2 percent a year (Article 7-2). Rent above that exceeds the cap.
Q. Are maintenance fees included in wolse? The Housing Lease Protection Act does not separately regulate maintenance fees. Check that the contract lists maintenance fee items and the method of calculation separately from the rent.
Tell us the length of the assignment, the budget structure and whose name will be on the lease, and we will set out whether jeonse or wolse fits and the deposit protection schedule together. Fees vary by case, so we explain them during the consultation.
Ask about expat housingSources
- Korean Law Information Center — Housing Lease Protection Act, Articles 3, 3-2, 3-6, 3-7, 4, 6 to 7-2, and Enforcement Decree of the same Act, Article 9
- Korean Law Information Center — Immigration Act, Article 88-2; Civil Act, Article 303; Act on Report on Real Estate Transactions, Articles 6-2 and 6-5; Licensed Real Estate Agents Act, Article 9