Korea Jeonse-to-Monthly-Rent Conversion Calculator
When converting part (or all) of a Jeonse deposit to monthly rent, this calculator shows the resulting monthly rent amount and whether it exceeds the statutory maximum conversion rate.
Frequently Asked Questions
How is the Jeonse-to-monthly-rent conversion calculated?
Monthly Rent = (Jeonse Deposit − Remaining Deposit) × Conversion Rate ÷ 12. The deposit difference is converted to an annual rate, then divided by 12 to give the monthly payment.
What is the statutory maximum conversion rate?
Under Article 7-2 of Korea's Housing Lease Protection Act, when converting a deposit to monthly rent, the rate may not exceed the lower of 10% per annum or the Bank of Korea base rate + 2 percentage points. For example, if the base rate is 2.75%, then 2.75% + 2% = 4.75%, which is lower than 10%, so 4.75% becomes the cap.
Does the statutory cap apply to new contracts?
No. This cap is only legally binding for conversions during an existing lease or when exercising the right to request renewal. For an initial new contract, the terms agreed between landlord and tenant apply as-is.
What happens if the applied rate exceeds the statutory cap?
If the situation qualifies as a renewal or mid-lease conversion, the tenant may demand a refund of the excess. However, the outcome depends on the nature of the individual contract (whether it is a new or renewed lease), so if there is an actual dispute it is advisable to consult a specialist such as the Housing Lease Dispute Mediation Committee.