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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