Jeonse to Monthly Rent (Wolse) Conversion Calculator — Korea Legal Cap on the Conversion Rate
Check the monthly rent when you convert a Korean deposit into rent, and whether it exceeds the legal cap.
The legal cap on the conversion rate
- When you turn a deposit into monthly rent, the rent cannot exceed a cap. Article 7-2 of the Housing Lease Protection Act says that when all or part of a deposit is converted into monthly rent, the monthly rent cannot exceed the converted amount multiplied by the lower of the two rates below.
- ① 10% a year — Enforcement Decree Article 9(1).
- ② Bank of Korea base rate + 2% a year — Enforcement Decree Article 9(2).
- The base rate is now 3%, so ② is the lower one at 5% and the legal cap is 5% a year. The base rate would have to exceed 8% before ① (10%) becomes the lower one.
- An agreement that goes above this cap is void if it is unfavorable to the tenant (Article 10, a mandatory provision).
Legal cap by base rate
| Base rate | Legal cap (per year) | Cap when ₩100,000,000 of deposit is converted into rent |
|---|---|---|
| 1% | 3% | ₩250,000 |
| 1.5% | 3.5% | ₩291,667 |
| 2% | 4% | ₩333,333 |
| 2.5% | 4.5% | ₩375,000 |
| 3% (current) | 5% | ₩416,667 |
| 3.5% | 5.5% | ₩458,333 |
| 4% | 6% | ₩500,000 |
| 6% | 8% | ₩666,667 |
| 8% | 10% | ₩833,333 |
| 9% | 10% | ₩833,333 |
The base rate is set by the Bank of Korea's Monetary Policy Board and can change at each meeting. This page's default is based on Bank of Korea monetary policy decision of 2026-08-27 — base rate 3.00%; next Monetary Policy Board meeting 2026-10-22. If it has changed, correct the base rate field in the calculator above.
How much monthly rent for how much deposit converted?
| Deposit converted into rent | Monthly rent cap | Total for one year |
|---|---|---|
| ₩10,000,000 | ₩41,667 | ₩500,004 |
| ₩30,000,000 | ₩125,000 | ₩1,500,000 |
| ₩50,000,000 | ₩208,333 | ₩2,499,996 |
| ₩100,000,000 | ₩416,667 | ₩5,000,004 |
| ₩200,000,000 | ₩833,333 | ₩9,999,996 |
| ₩300,000,000 | ₩1,250,000 | ₩15,000,000 |
Based on the legal cap of 5% a year; monthly rent = converted deposit × conversion rate ÷ 12. The table comes from the same function as the calculator on this page, rounded to the won.
How it is calculated
- Deposit difference = current deposit − deposit after the change.
- Added monthly rent = deposit difference × conversion rate ÷ 12.
- New monthly rent = current rent + added rent. For example, for a home where the deposit drops from ₩200,000,000 to ₩100,000,000 and the tenant was paying ₩300,000 a month, the added rent at the legal cap is ₩416,667 and the total is ₩716,667.
- Legal cap check — if the rate you apply is at or below the cap it is within it; above the cap it exceeds it. If you leave the rate blank, the legal cap is used as it is.
How to tell whether converting pays off
A conversion rate of 5% a year is like paying 5% interest every year on the deposit you reduce. If you can earn more than that on the money you take out, converting pays off; if you can only earn less, as with a savings account, it costs you. In the other direction, if you raise the deposit to cut your rent, you tie up that money in return for lower rent. Compare the return on your own money with the conversion rate.
What this calculation does not cover
- This cap is the rule for converting a deposit into monthly rent in a residential lease (Housing Lease Protection Act). Leases of commercial buildings are covered by a separate law with different rules.
- Article 7-2 sets no cap for the other direction, turning monthly rent into a deposit. In that case the calculator only shows the rent that goes away.
- The limit on demands to raise rent or deposit (Article 7(2): 1/20 of the agreed amount, which a local ordinance can set differently) applies separately from conversion.
- Management fees, how a mid-lease conversion is agreed, and what the landlord and the tenant have agreed are not reflected.
Key terms
- Jeonse — a lease in which the tenant pays a large lump-sum deposit and no monthly rent; the deposit is returned when the lease ends.
- Wolse — a lease with monthly rent, usually together with a smaller deposit.
- Conversion — turning part or all of a deposit into monthly rent (or the reverse) by agreement. This page checks the legal cap for deposit → rent.
Basis: Housing Lease Protection Act Articles 7, 7-2 and 10 (in force 2026-01-02) and its Enforcement Decree Article 9 (in force 2026-07-01), National Law Information Center; Bank of Korea monetary policy decision (checked in October 2026). Official English translations are published by the Korea Law Translation Center and may lag behind the Korean text. This calculation is a guide to the legal cap, not legal advice.
Frequently asked questions
What conversion rate can a landlord charge when changing a jeonse into a wolse?
For a home, the rent must be set at 5% a year or less (base rate 3% + 2%, or 10% a year, whichever is lower). The cap moves with the base rate.
What if the rent was set above the legal cap?
The Housing Lease Protection Act says an agreement that goes against the Act and is unfavorable to the tenant is void (Article 10). For a specific case, check with a legal professional or a public legal advice service.
Market conversion rates look higher.
Asking rents in the market can differ from the legal cap. The cap is the ceiling set by law; within it, the rate is agreed between the parties. The calculator shows the legal cap and the rate you enter side by side.
Is what I enter saved?
No. The calculation happens only in your browser; nothing is sent to a server or stored.
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