Jeonse demands a daunting lump sum; monthly rent feels like money down the drain. In between sits semi-jeonse — a rental with a substantial deposit. The question is how to split between deposit and rent.
The test in one line — if adding to the deposit reduces rent by more than what that money would earn elsewhere (or cost you in loan interest), a bigger deposit wins.
Check your own splits in the conversion calculator.
What semi-jeonse actually is
It isn't a legal term — it simply describes a monthly rental with a large deposit. Functionally it's closer to renting than to jeonse.
| Type | Deposit / rent / traits |
| Jeonse | Very large / none / needs a lump sum, higher recovery risk |
| Semi-jeonse | Medium / medium / spreads the burden |
| Monthly rent | Small / large / little cash tied up, lower risk |
How the splits compare
Converting a ₩300M jeonse at a 4.5% rate:
| Deposit retained | Converted → monthly rent |
| ₩250M | ₩50M → about ₩188,000 |
| ₩200M | ₩100M → about ₩375,000 |
| ₩150M | ₩150M → about ₩563,000 |
| ₩100M | ₩200M → about ₩750,000 |
| ₩50M | ₩250M → about ₩938,000 |
Each ₩50M of deposit is worth roughly ₩190,000 a month. That's your yardstick.
Adding ₩50M to save ₩190,000 monthly (₩2.28M a year) equals a 4.5% annual return on that money. If your savings rate is lower, raise the deposit; if you can earn more elsewhere, take the rent.
When a bigger deposit wins
- Your spare cash sits in savings earning less than the conversion rate
- You want to reduce fixed monthly outgoings (irregular income)
- The offered rate is above market — converting costs you more
When more rent wins
- You need the lump sum elsewhere
- You're worried about deposit recovery — less deposit, less to lose
- You qualify for the rent tax credit (check the rules)
- You're staying short term
⚠️ Safety comes before yield
Before optimising returns, check recovery. Confirm that senior mortgages plus your deposit stay under about 70% of market value. Above 80%, an auction may not return your money in full.
- Read the property register before signing
- Check whether the amount qualifies for deposit-return insurance — rejection is itself a warning
- The larger the deposit, the more essential that insurance becomes
A favourable yield calculation means nothing if the deposit isn't safe.
Using this in negotiation
- Work out the implied rate of their offer in the calculator
- Compare it against the legal cap and market levels
- If renewing, you can push back on anything above the cap
- Propose a specific alternative split
- Record the agreement in an amended contract and get a fresh fixed date stamp
"Could you lower it?" persuades far less than "at 6% that's ₩1,000,000; at the 4.5% cap it's ₩750,000."
FAQ
Does semi-jeonse need a fixed date stamp?
Absolutely — any deposit requires move-in registration plus a fixed date (see tenant rights).
Does a smaller deposit weaken my protection?
Opposing power comes from registration and occupancy, but how much you recover at auction depends on deposit size and ranking.
Can we change the split mid-lease?
Yes, by agreement. Use an amended contract and renew the fixed date stamp.
The answer is your cash's opportunity cost versus the conversion rate — but check first that the deposit can be safely recovered.
This is general information, not legal or investment advice. Rates and caps change — verify at contract time.
