Korean Real Estate Brokerage Fees Explained: Rates for Sales, Jeonse and Monthly Rent
Legal maximum brokerage fee rates in Korea as of October 2026, with nine worked examples, how monthly rent is converted, VAT, negotiation tips and when you pay.
The brokerage fee is a legal maximum, not a fixed price
The commission you pay a licensed real estate agent in Korea, called the brokerage fee (중개보수, often nicknamed bokbi), is negotiable up to a legal cap. For housing, the caps are set by provincial ordinances within national guidelines, and the current schedule dates from the October 2021 revision. It still applies as of October 2026, and our brokerage fee calculator uses the same tables.
Three principles to remember:
- The rate is a ceiling; you can agree on anything below it.
- The seller and buyer (or landlord and tenant) each pay their own agent.
- Charging more than the cap breaks the Licensed Real Estate Agents Act. Be wary of extra "consulting" or "service" charges too.
Maximum rates for home sales
| Transaction amount | Maximum rate | Fee cap |
|---|---|---|
| Under ₩50 million | 0.6% | ₩250,000 |
| ₩50M to under ₩200M | 0.5% | ₩800,000 |
| ₩200M to under ₩900M | 0.4% | None |
| ₩900M to under ₩1.2B | 0.5% | None |
| ₩1.2B to under ₩1.5B | 0.6% | None |
| ₩1.5B and above | 0.7% | None |
Brackets are "from ... to under". A sale at exactly ₩900 million falls into the 0.5% bracket, so ₩890 million (0.4%, max ₩3.56 million) and ₩900 million (0.5%, max ₩4.5 million) produce noticeably different caps.
Maximum rates for leases (jeonse and monthly rent)
| Transaction amount | Maximum rate | Fee cap |
|---|---|---|
| Under ₩50 million | 0.5% | ₩200,000 |
| ₩50M to under ₩100M | 0.4% | ₩300,000 |
| ₩100M to under ₩600M | 0.3% | None |
| ₩600M to under ₩1.2B | 0.4% | None |
| ₩1.2B to under ₩1.5B | 0.5% | None |
| ₩1.5B and above | 0.6% | None |
For jeonse (전세), a lease where the tenant pays one large deposit instead of monthly rent, the deposit itself is the transaction amount. For monthly rent, you first calculate a converted deposit.
Monthly rent: the converted deposit
- Calculate deposit + monthly rent × 100.
- If the result is under ₩50 million, recalculate as deposit + monthly rent × 70.
- Apply the lease table to that amount.
With a ₩10 million deposit and ₩500,000 rent: ₩10M + ₩50M = ₩60M, which is not under ₩50M, so ₩60M is used. With a ₩5 million deposit and ₩400,000 rent: ₩5M + ₩40M = ₩45M, which is under ₩50M, so the amount becomes ₩5M + ₩28M = ₩33M.
Nine worked examples (maximum fee, VAT excluded unless shown)
| Deal | Transaction amount | Rate | Maximum fee | With 10% VAT |
|---|---|---|---|---|
| Sale ₩40M | ₩40M | 0.6% | ₩240,000 | ₩264,000 |
| Sale ₩150M | ₩150M | 0.5% | ₩750,000 | ₩825,000 |
| Sale ₩190M | ₩190M | 0.5% | ₩800,000 (cap) | ₩880,000 |
| Sale ₩600M | ₩600M | 0.4% | ₩2,400,000 | ₩2,640,000 |
| Sale ₩1B | ₩1B | 0.5% | ₩5,000,000 | ₩5,500,000 |
| Sale ₩1.3B | ₩1.3B | 0.6% | ₩7,800,000 | ₩8,580,000 |
| Jeonse ₩300M | ₩300M | 0.3% | ₩900,000 | ₩990,000 |
| Jeonse ₩90M | ₩90M | 0.4% | ₩300,000 (cap) | ₩330,000 |
| Rent ₩10M / ₩500K | ₩60M | 0.4% | ₩240,000 | ₩264,000 |
For the ₩190 million sale, 0.5% would be ₩950,000, but the ₩800,000 cap applies first. For a ₩5 million deposit with ₩400,000 rent, 0.5% of the converted ₩33 million gives ₩165,000 (₩181,500 with VAT).
VAT and receipts
The rates above exclude value-added tax. If the agency is a general taxpayer, 10% VAT is added to the fee. Simplified-taxpayer agencies calculate tax differently, so the amount can vary; ask which type the office is and always get a cash receipt or tax invoice. The receipt also counts as a deductible expense when you later sell and calculate capital gains tax.
Negotiating and when you pay
- Agree before signing: settle the rate before the contract is written, and keep a text record together with the property disclosure statement the agent gives you.
- When to pay: unless agreed otherwise, the fee is due when payment of the purchase price or deposit is completed, usually on closing or move-in day. If an agent asks for the full amount on contract day, check what was agreed.
- If the deal falls apart: whether a fee is owed when a contract is cancelled for reasons not caused by the agent can be disputed. For disputes, use legal service matching or public legal aid such as the Korea Legal Aid Corporation.
- Officetels and non-residential property: residential officetels meeting size and facility conditions have separate rates, and shops, land and other non-residential property are negotiable up to 0.9%.
Common misunderstandings
- "The fee is always the maximum rate": it is a ceiling and can be negotiated.
- "The buyer pays both sides": each party normally pays its own agent.
- "VAT is included": table amounts exclude VAT.
- "Monthly rent is rent × 12": use the converted deposit (× 100, or × 70 when under ₩50 million).
Tips for foreign residents
If you are renting or buying as a foreign resident, ask the agent to explain the fee in writing before you sign, in English if possible, and confirm the total including VAT. Paying by bank transfer to the agency's business account and getting a receipt makes any later dispute much easier to resolve. If you plan a full purchase budget, add taxes and registration costs as shown in first home buying steps.
This guide is general information. Local ordinances and individual agreements may differ. It reflects October 2026; check the National Law Information Center for revisions.
Frequently asked questions
Q. When do I pay the brokerage fee?
Unless you agreed otherwise, it is due when payment of the price or deposit is completed, usually on closing or move-in day. Settle the timing before signing to avoid surprises.
Q. Can I ask for less than the maximum rate?
Yes. The legal rate is only a ceiling, so you are free to negotiate below it. Agree before the contract is written and keep a text or written record.
Q. How is the fee for a monthly rent lease calculated?
Add the deposit to rent × 100. If that is under ₩50 million, use deposit + rent × 70 instead. Apply the lease rate table to the result and check the fee cap.
Tools for this topic
This article is general information, not legal or tax advice. Rules change, so confirm with official sources or a professional before you sign or apply.