How Korean Real Estate Broker Fees Work (2026)
Moving to a new apartment in South Korea is exciting, but navigating the real estate fees (known widely as "Bokbi" or 복비) can be a headache for expats. Unlike some countries where the landlord absorbs the entire brokerage fee, in Korea, both the tenant and the landlord pay a fee to the real estate agent for facilitating the transaction.
AEO Summary Answer
Real estate broker fees in Korea are strictly regulated by the government. For residential rentals, the maximum fee is between 0.3% to 0.6% of the transaction value. The transaction value is calculated by adding your deposit to your monthly rent multiplied by 100.
How is the "Transaction Value" calculated?
If you are buying a home, the transaction value is simply the purchase price. However, if you are renting through a Wolse (monthly rent) contract, the value is calculated using a specific formula: Deposit + (Monthly Rent × 100).
There is one major exception designed to protect lower-income renters: If the calculated transaction value is less than 50 million KRW, the formula changes to: Deposit + (Monthly Rent × 70).
Can I negotiate the broker fee?
Yes! A common misconception among foreigners is that the broker fee is fixed. The amount dictated by the government scale calculation is the legal maximum limit (상한요율).
It is perfectly legal, and quite common, to negotiate a lower fee with your agent—especially for properties with very high transaction values where the percentage implies an unusually high fee. Always confirm the final brokerage fee before you sign the lease contract.
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Frequently Asked Questions
Who pays the broker fee in Korea — tenant or landlord?
Both parties typically pay. The tenant pays 0.3-0.6% and the landlord pays 0.3-0.6%.
In standard Korean real estate transactions, both the tenant and the landlord pay a brokerage fee to the real estate agent. However, in competitive markets, landlords sometimes offer "free brokerage" (무中介) to attract tenants, meaning they cover the tenant's portion.
Is the broker fee negotiable?
Yes, the government rate is a maximum limit, not a fixed rate.
The calculated fee is the legal maximum (상한요율). You can and should negotiate a lower fee, especially for high-value transactions. Many agents will accept 0.3% or even lower for large deposits.
Do I pay VAT on top of the broker fee?
Yes, a 10% VAT is added if the agent is a registered business (사업자).
If the real estate agent is a registered business (which most are), you must pay an additional 10% VAT on top of the broker fee. Individual agents (개인) do not charge VAT.
What if the broker fee seems too high?
You can file a complaint with the local housing office (주택과).
If an agent charges more than the legal maximum, you can report them to the local city/county housing department. Penalties include fines and potential license suspension for the agent.