Finding a house in Korea [Part 1]
I will write about finding a house in South Korea, where I have worked for 15 years as a real estate investor and broker.
The information and knowledge I have acquired contain many aspects that are even challenging for South Koreans to understand. For foreigners who have left their home country, the environment can be even more daunting.
So, I intend to write about what aspects should be checked and what perspective should be taken when looking for a house in South Korea from a foreigner’s point of view.
Of course, I’m not proficient in English, so I’m conveying this information through Google Translate. There might be translation errors, and there may also exist real estate-related terms used only in South Korea, so please understand this part.
Real estate transactions significantly differ depending on whether you are a tenant or a landlord. Consequently, there are specific aspects that a tenant must prepare for, and certain matters a landlord must check and consider.
These considerations can vary based on perspective. Therefore, I aim to present writings from both the tenant’s and the landlord’s viewpoints.
For this instance, I will write about the perspective of a tenant looking for a place to live in South Korea.
“Finding a house in Korea” Let’s Go!!
Finding a house in Korea
1. Looking for a house in Korea
Firstly, each country has its own culture and legal system. I don’t know where you may be coming from, but there might be a culture or laws similar to yours, though that would only be to some extent.
There are also aspects you need to recognize. This includes customary laws that are handed down culturally or traditionally. These aren’t determined by law, but the way they are handled can differ from country to country, person to person.
However, since you are looking for real estate in South Korea, there will be areas where you need to be aware of and adapt to the Korean way, rather than your own method.
2. Who should I turn to?
South Korea also has a certified real estate broker system. In the United States, real estate brokers are known to be relatively high earners, but this is not the case in South Korea. While the U.S. operates with exclusive brokerage, it’s different in South Korea.
For example, a house that is listed with Broker A may also be listed with Broker B. The quality and quantity of properties can vary depending on the skill and diligence of each broker, so it is something to keep in mind. However, even for South Koreans, understanding this aspect can be challenging.
If a property listed with Broker A is not with Broker B, joint brokerage between A and B is also possible. So, there’s no need to worry too much. If joint brokerage is possible, it simplifies the problem. All you need to do is find a broker who speaks English or your native language.
3. Where is the Real Estate Agent?
South Korea hosts U.S. military bases, and there are cases where U.S. forces stationed in South Korea need to find housing. They often enter into exclusive contracts with licensed real estate brokers in South Korea. To contract with the U.S. military, South Korean brokers must meet certain conditions.
Among those conditions, proficiency in English is essential. And what about a broker who is dealing with the U.S. military? They are likely to be more trustworthy than others.
It may be necessary to inquire with the U.S. military in South Korea or to get recommendations through the embassy. But remember, they are also salespeople!
US Embassy in Korea website <—
4. Types of Korean Houses
4-1 house with yard
South Korea is not a large country in terms of land area. Nevertheless, Seoul’s population density is among the highest in the world. Many people reside on a small piece of land, so naturally, the city has more apartments than spacious mansions with yards.
However, if you dislike the change in living environment and are looking for a house with a yard in Seoul, be prepared for high prices. It might be a good idea to explore the outskirts of Seoul. Since Seoul has a well-developed subway system, it would be advisable to refer to the subway route map when making your selection.
4-2 apartment
In South Korea, the most common type of housing for rent is apartments. In Paris, apartments are known to be the homes of low-income individuals. Whether this belief was formed by watching parts of the mass media, at least in Seoul, South Korea, apartments are considered luxury housing.
If you arrive in Seoul and see the closely packed apartments, you may be surprised. If you’re looking for affordable rent in the expensive city of Seoul, understanding the subway lines can be helpful in finding a place. Increasing travel time to reduce costs is a method that works in any country.
South Koreans often use the real estate listings on Naver to find homes. By accessing the Naver portal site and searching for Naver real estate, you can easily grasp the property prices. The Naver portal site provides English services for foreign users, including detailed explanations of real estate-related terms, and support from an English-speaking customer center. However, please note that they do not offer brokerage services, so the site can be useful for understanding market prices.
portal site Naver
Naver real estate
5. structure of the apartment
The structure of most apartments in South Korea consists of three rooms, a living room, a bathroom, and a kitchen. If it’s a smaller home, there might be a difference between having two or three rooms. The size ranges from 60 to 90 square meters. If you have lived in a house with a yard in the U.S. or Canada, you might feel the home is uncomfortably small by comparison. However, the price of a home in Seoul could be two to three times more expensive.
A unique aspect in South Korea is that people remove their shoes when entering the home. The floors are not meant for wearing shoes on. There’s usually a shoe rack at the entrance, and shoes are removed before using the inside of the house. The floors inside the house are heated, and there is likely no house in South Korea without floor heating. 99% of the homes have heated floors, so there’s no need to worry about cold winters. However, checking the heating system is essential.
In big cities, urban gas lines are connected, resulting in relatively cheap heating costs, but sometimes LPG gas is used instead. Occasionally, there might be central heating or late-night electric systems, so checking is necessary. Among these, urban gas is the cheapest. Even Koreans try to save on heating costs in winter.
In South Korea, where the four seasons are distinct, cooling systems are also well-equipped. In newly built apartments, ceiling-mounted heating and cooling units may be installed. If there is no cooling system, you may need to purchase and install it yourself. Air conditioners range from wall-mounted units suitable for cooling one room to stand-alone units for larger areas, and even ceiling-mounted models. In the case of ceiling-mounted air conditioners, purchasing and installing them can be quite costly. If you move, you have to take it with you, and South Korean law requires you to restore the property to its original state when terminating a real estate contract, so it’s best to avoid ceiling-mounted air conditioners.
6. How to rent an apartment
There are two main rental methods. Of course, one is the very common monthly rent concept, and the other is the Jeonse system, which is unique in rental systems worldwide.
The Jeonse system may be a new type of rental for many. The market price varies by apartment, but let’s take an example. If the selling price of an apartment is $500,000, the Jeonse price is $300,000. The advantage of this is that there is no monthly rent payment and no taxes. Only the maintenance fee for the residence must be paid. Why would a landlord own under this rental structure? If the landlord owns the apartment for $200,000 and the apartment’s price rises, the return on investment improves, leading to this type of investment.
In South Korea, many people are making this kind of investment, so finding a Jeonse house is not very difficult. However, since the market price varies by apartment, the Jeonse amount could be $400,000, $300,000, or even $200,000. Since the Jeonse amount changes with the selling price, it would be wise to look according to your budget.
Though the Jeonse system might be unfamiliar, Hollywood star Angelina Jolie’s son Maddox is enrolled at Yonsei University in Seoul, and a Jeonse contract was made for an apartment in Seoul for him. This Jeonse contract system usually consists of a 2-year contract. Under South Korean Residential Lease Protection Law, the tenant has the right to make a 2-year contract and request an additional 2-year extension from the landlord, making it 2+2 years, which the landlord cannot refuse unless under special circumstances.
If you are looking for short-term rentals, you may search through the Airbnb app. However, be cautious, as 95% of Airbnb operations in South Korea are illegal under national law. Finding a landlord for short-term rentals is a very challenging task, as there are not many other options.
I have written this article under the topic “Finding a Home in South Korea,” and I hope it has been helpful. Make sure to capture this text or save the website, just in case you forget. In my next article, “Part 2,” I will explain the system that allows you to protect your security deposit
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