The center of gravity in Seoul’s apartment rental market has shifted from jeonse (lump-sum deposit leases) to monthly rent. This year, monthly rent made up 54.1% of new Seoul apartment leases — topping half for the first time ever. As recently as 2023 the figure was around 43%, so this is a roughly three-year change. With jeonse-loan curbs, deposit-fraud trauma, and a clampdown on gap investing all working at once, the structure of a rental market long known as “the land of jeonse” is changing fast.

TL;DR

  • Of 51,196 new Seoul apartment leases this year, 27,719 (54.1%) were monthly rent — over half for the first time. Some counts put it nearer 49.8%, but the broad trend of monthly rent matching or overtaking jeonse is the same.
  • The monthly-rent share has climbed from about 43% in 2023 to a majority in three years. The main drivers are jeonse-loan curbs, post-fraud aversion to large deposits, and the clampdown on gap investing.
  • The nationwide monthly-rent price index hit a record 105.5 in April. With high-end monthly rents above 2 million won spreading, tenants’ monthly housing costs are rising.

What happened?

When renting a Seoul apartment, more people are now choosing monthly rent over jeonse. Of 51,196 new Seoul apartment leases this year, 27,719 — 54.1% — were monthly rent. In a market where jeonse was treated as the default, monthly rent crossing the halfway mark is a symbolic moment. Some statistics, depending on methodology, put the figure around 49.8%, but the big picture — monthly rent rising to roughly half — is no different.

The pace is steep, too. As recently as 2023 the monthly-rent share was about 43%; in roughly three years it has climbed to the halfway line. The line “jeonse will disappear” once sounded like an exaggeration, but in the data that direction is now clearly visible.

Why the shift to monthly rent?

Three forces converged. First, jeonse-loan curbs: as lending got tighter, raising a large deposit all at once became harder, pushing tenants toward monthly rent. Second, deposit-fraud trauma: with fears of losing a deposit growing, more renters prefer paying monthly to tying up a large sum.

Third, a supply-side change: with gap investing all but blocked and owner-occupancy requirements tightened, the volume of jeonse coming to market has shrunk. As jeonse supply falls and demand shifts to monthly rent, the market’s center of gravity naturally tilts toward wolse.

What about the burden on tenants?

The faster the shift to monthly rent, the heavier the housing cost tenants must pay each month. The nationwide monthly-rent price index set a fresh record of 105.5 in April, and in Seoul, high-end monthly rents above 2 million won are spreading even in outer districts. Jeonse ties up a deposit but costs little month to month; monthly rent drains cash every month, so the felt burden on households is different.

In particular, young adults and first-time earners — who tend to lack a large lump sum — rely more on monthly rent, so rising rents can deepen housing-cost inequality. As jeonse recedes, semi-jeonse (deposit-plus-monthly) and pure monthly rent are filling the gap.

What comes next?

The monthly-rent trend is likely to persist for a while. Jeonse supply is hard to expand quickly, and with a tax overhaul — including higher capital-gains and holding taxes — pending in the second half, volatility in the rental market could rise. Some even raise the prospect of a “triple squeeze” in which sale prices, jeonse and monthly rent all climb together.

If you’re planning to rent, it helps to weigh the total cost of jeonse versus monthly rent. Check the jeonse-loan rate and deposit protections (whether guarantee insurance applies, the priority of claims); for monthly rent, the balance between deposit and rent; and the potential for increases at renewal.

The bottom line

The crux of these figures isn’t a mere change in share but the fact that “jeonse-centric” — a long-standing default of Korea’s rental market — is being shaken. With jeonse-loan curbs, post-fraud sentiment, and the gap-investing clampdown interlocking, monthly rent is hardening into a structural norm. The key questions are how to cushion tenants’ housing costs and whether rental supply will emerge to fill the shrinking pool of jeonse. As the market’s standard shifts, both tenants and landlords increasingly need to recalculate jeonse and monthly rent on a total-cost basis.

※ This article is for informational purposes only and is not investment advice.

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