The last figure you face after a deal closes: the agent's commission. "Is this the normal amount?" — awkward to ask. The short answer: what the law sets is a ceiling, and you can negotiate below it.
Commission = transaction amount × maximum rate (some brackets also carry a cap). Rates are set by city/province ordinance, so check the table for your area before signing.
First, the "transaction amount"
For a purchase it's the price. For monthly rent there's a conversion formula:
- Jeonse — the deposit is the transaction amount
- Monthly rent — deposit + (monthly rent × 100)
- If that total is under ₩50M, recalculate as deposit + (monthly rent × 70)
- Pre-sale rights — (amount paid to date + premium) × rate
So a ₩10M deposit with ₩500,000 monthly rent gives ₩10M + ₩50M = ₩60M.
What "maximum" really means
The published figure is a ceiling. You are legally free to agree on less, and many deals do.
- Negotiate before signing, not on the day you pay the balance.
- Using the same agent for both sides, or a quick sale, sometimes creates room.
- VAT depends on whether the agent is a general or simplified taxpayer — confirm the total.
What they cannot charge
Licensed agents may not take money beyond the commission and actual expenses.
- Separate charges for drafting the contract or arranging a loan are violations.
- Actual expenses (such as certificate fees) may be charged only when you requested them.
- Charging above the ceiling exposes the agent to administrative and criminal penalties.
Always take a receipt
- Request a cash receipt or tax invoice — commissions qualify.
- The receipt later counts as a deductible expense for capital gains tax (see the capital gains guide).
- In other words, skipping the receipt costs you at tax time.
If you were overcharged
- Collect evidence — contract, receipt, messages
- Request a refund from the agent
- If unresolved, file a complaint with your district office
- The Ministry of Land's transaction report center and the realtors' association dispute mediation are also options
FAQ
Where do I find the rate table?
On your city or province website, the realtors' association regional tables, or Ministry of Land guidance. Rates vary by ordinance.
Do I pay if the deal falls through?
In principle commission arises only when a contract is concluded — though disputes can arise if the buyer or seller caused the collapse.
What about renewing a jeonse contract?
Renewing directly with the landlord without an agent means no commission.
The commission is a ceiling, not a fixed price. Confirm the total and get a receipt before you sign.
This is general information, not legal advice. Rates and rules vary by local ordinance and change over time — check with your local government before signing.
