The fee is a maximum, not a fixed price
Many people treat the rates below as a set price, but the law only sets the most an agent may charge. Anything under that is agreed between you and the agent. Raise it before you sign the contract; asking for a discount afterwards rarely goes well.
Both sides pay. The buyer and the seller (or the tenant and the landlord) each pay the agent a fee, so the agent on a ₩500 million sale can receive up to ₩2 million from each side. The amount this calculator shows is what one party pays.
Maximum rates for purchases
| Price | Maximum rate | Fee limit |
|---|---|---|
| Under ₩50 million | 0.6% | ₩250,000 |
| ₩50 million to under ₩200 million | 0.5% | ₩800,000 |
| ₩200 million to under ₩900 million | 0.4% | None |
| ₩900 million to under ₩1.2 billion | 0.5% | None |
| ₩1.2 billion to under ₩1.5 billion | 0.6% | None |
| ₩1.5 billion or more | 0.7% | None |
Maximum rates for leases (jeonse and monthly rent)
| Transaction amount | Maximum rate | Fee limit |
|---|---|---|
| Under ₩50 million | 0.5% | ₩200,000 |
| ₩50 million to under ₩100 million | 0.4% | ₩300,000 |
| ₩100 million to under ₩600 million | 0.3% | None |
| ₩600 million to under ₩1.2 billion | 0.4% | None |
| ₩1.2 billion to under ₩1.5 billion | 0.5% | None |
| ₩1.5 billion or more | 0.6% | None |
Rates from the October 2021 revision, using Seoul's ordinance. Non-residential property (shops, most officetels) follows different rules, and details can vary by city or province.
The rate doesn't simply rise with price: for purchases, the ₩200 million to ₩900 million band has the lowest rate, and cheaper or more expensive homes pay more. Bands are "under" amounts, so exactly ₩900 million already falls in the next band. The maximum on a ₩890 million sale is ₩3,560,000, but on ₩900 million it is ₩4,500,000 — a jump of ₩940,000 for ₩10 million more. Near a boundary there is a lot of room to negotiate.
How monthly rent is converted
For a lease with monthly rent, the deposit and the rent are combined into one "transaction amount", and the lease rates above are applied to that.
Transaction amount = deposit + (monthly rent × 100)
If that comes to less than ₩50 million, use
deposit + (monthly rent × 70) instead.
A ₩10 million deposit with ₩500,000 a month gives ₩60 million. A ₩5 million deposit with ₩300,000 a month gives ₩35 million — under ₩50 million — so it is recalculated as ₩26 million. This keeps fees on small rentals from getting out of hand.
VAT
If the agency is a general VAT taxpayer, 10% VAT is added to the fee. Simplified taxpayers charge less, and VAT-exempt agencies charge none. Ask which applies, and whether a quoted fee includes VAT, before you sign, so the final bill isn't a surprise.
When you pay
Legally the fee is earned when the contract is signed, but in practice it is usually paid on the day the balance is paid and you get the keys. Agree the timing with the agent and write it in the contract.
If the deal falls through for reasons that aren't the agent's fault, you may still owe the fee. If it collapses because of the agent's intentional act or negligence, you don't.
Tips for foreign tenants and buyers
- Agree the fee in writing before signing. The cap applies to everyone; being a foreigner doesn't change it.
- Check the rate table on the wall. Agencies must display it.
- Ask for a cash receipt (현금영수증). Agencies must issue one, and it counts toward year-end tax deductions.
- Get the liability insurance certificate (공제증서) at signing. It covers losses caused by the agent's mistakes.
- Overcharged? You can claim back anything above the legal maximum and report it to the local district office (구청).