One of the biggest surprises for foreigners renting in Korea is the high security deposit.

In many countries, tenants usually pay a deposit equal to one or two months' rent. In Korea, however, security deposits can range from KRW 5 million to over KRW 100 million, depending on the property, location, and lease type.

? Why Are Deposits So High?

Korea has a unique rental system that is based heavily on security deposits. This comes from Korea's long-standing rental culture, including the Jeonse system, where tenants pay a large lump-sum deposit instead of monthly rent.

Even for regular monthly rentals, the security deposit is often much higher than what foreigners may be used to.

? Higher Deposit, Lower Monthly Rent

In Korea, the security deposit and monthly rent are closely connected 

In many cases:

• A higher security deposit can lower the monthly rent.
• A lower security deposit usually means higher monthly rent.

This is why some tenants choose to pay a larger deposit if they want to reduce their monthly expenses.

? Is the Security Deposit Refundable?

Yes. The security deposit is generally refundable at the end of the lease.

However, the landlord may deduct unpaid rent, unpaid utility bills, maintenance fees, or repair costs for damages beyond normal wear and tear.

As long as there are no unpaid charges or major damages, the remaining deposit should be returned after the lease ends.

? Can I Lower the Deposit?

In many cases, yes.

Some landlords may allow you to adjust the deposit and monthly rent. This is often called a deposit-rent adjustment.

For example, if you prefer to pay a lower deposit, the landlord may ask for a higher monthly rent instead. However, this depends on the landlord, property, and market conditions.