When a landlord says "I'm converting to semi-jeonse at renewal," most tenants simply accept — unsure whether they can refuse or whether the figure is fair.
Knowing the rules changes the conversation. Conversions are capped by law, and above all they require your consent.
Three points — ① a landlord cannot convert unilaterally ② at renewal the rate cannot exceed base rate + 2%p ③ rent paid above the cap is recoverable.
The legal conversion cap
| Formula | Lower of base rate + 2%p and 10% |
| 2026 basis | Base rate 2.5% → 4.5% |
| If the base rate were 3.5% | 3.5 + 2 = 5.5% |
| If the base rate were 8.5% | 10.5% vs 10% → 10% applies |
| Scope | Residential leases (commercial has separate rules) |
The Bank of Korea sets the base rate eight times a year, so the cap moves with it. Check the rate current at your contract date.
⚠️ When the cap actually applies
| Situation | Cap applies? |
| Converting during an existing lease | ✅ Yes |
| Renewing via the renewal request right | ✅ Yes |
| A brand-new contract elsewhere | ❌ No — market rates |
| Signing fresh terms after expiry | ⚠️ Disputed — depends on renewal versus new |
This is why market conversion rates often exceed the legal cap — new contracts aren't bound. Conversely, if you're renewing your current lease, the cap is a powerful argument in your hands.
Can a landlord impose it?
No. Converting jeonse to rent changes the contract terms and requires tenant agreement.
- Mid-lease, terms cannot change without consent.
- At renewal, the tenant can invoke the renewal request right for two more years on broadly existing terms (once, with rent increases capped at 5%).
- Refusing renewal requires statutory grounds, such as the owner moving in.
So "accept it or leave" isn't the whole story — the renewal right, the 5% cap and the conversion cap work together (see tenant rights).
Negotiating, step by step
- Reverse-engineer the implied rate:
rate = (rent × 12) ÷ (old deposit − new deposit) × 100 — use the calculator - Compare with the cap (currently 4.5%)
- Establish whether this is a renewal or a new contract
- Counter with specific numbers: "6% means ₩1,000,000; the 4.5% cap means ₩750,000."
- Record it in an amended contract and get a new fixed date stamp
Keep records. Negotiate by message or email — if a dispute follows, what was agreed becomes the key evidence.
If you've already overpaid
| Step 1 | Calculate the excess from the contract and transfer records |
| Step 2 | Request repayment by certified mail |
| Step 3 | Apply to the lease dispute mediation committee |
| Step 4 | Litigation if unresolved (small-claims procedure for modest sums) |
If raising it while living there feels awkward, some tenants settle at move-out instead. Either way, keep the evidence as you go.
FAQ
What if the landlord refuses my counter-offer?
Where the renewal right applies, you can insist on two more years on existing terms with increases capped at 5%.
Can we agree below the cap?
Of course — the cap is a maximum, not a target.
Can we negotiate the deposit-rent mix too?
Yes. Even at one rate, the split is negotiable (see choosing your split).
The conversion rate isn't something you're told — there's a legal ceiling, and it can't change without your agreement.
This is general information, not legal advice. Whether the cap applies depends on the nature of the contract — consult a legal service if a dispute is likely.
