Rent Increase Limit in Korea: 5% Cap on Deposit and Monthly Rent Increases
Under Article 7(2) of the Housing Lease Protection Act, a request to raise rent or deposit may not exceed one-twentieth (5%) of the agreed amount, and cities and provinces may set a lower cap by ordinance.
No increase may be requested within one year of the contract or of the last increase (Art. 7(1)).
When you renew using the renewal request right, the terms stay the same and rent and deposit can change only within that 5% (Art. 6-3(3)).
The 5% cap
Article 7 of the Housing Lease Protection Act lets either side ask to raise or lower the rent or deposit when taxes, charges or economic conditions change. An increase request, however, may not exceed one-twentieth of the agreed rent or deposit (Art. 7(2), Enforcement Decree Art. 8(1)).
| Rule | Detail |
|---|---|
| Cap | 1/20 (5%) of the agreed rent or deposit |
| Local ordinance | A city or province may set its own cap within 5% (Art. 7(2) proviso) |
| Timing | No increase request within 1 year of the contract or the last increase (Art. 7(1)) |
How it works with renewal
A tenant can request renewal between 6 months and 2 months before the lease ends, once, for 2 years (Art. 6-3(1)–(2)). The renewed lease is on the same terms, and rent and deposit can change only within Article 7 (Art. 6-3(3)). So a renewal through this right also keeps any increase within 5%.
The renewal request right and its 9 refusal grounds
Maximum amounts
| Current amount | 5% increase | Maximum after increase |
|---|---|---|
| Deposit ₩100 million | ₩5 million | ₩105 million |
| Deposit ₩200 million | ₩10 million | ₩210 million |
| Deposit ₩300 million | ₩15 million | ₩315 million |
| Deposit ₩500 million | ₩25 million | ₩525 million |
| Rent ₩500,000 | ₩25,000 | ₩525,000 |
| Rent ₩1,000,000 | ₩50,000 | ₩1,050,000 |
If you have a ₩300 million jeonse and the landlord asks for ₩320 million, that is a 6.67% increase, above the cap.
If the landlord instead proposes turning part of the deposit into monthly rent, check the conversion-rate cap too.
Deposit to monthly rent calculator
Common questions
Q. Does the 5% cap apply to a new tenant?
A. The cap governs a request to raise the rent or deposit agreed in an existing lease (Art. 7). It does not set the price of a first contract with a new tenant.
Q. What if both the deposit and the rent go up?
A. The Act only says “one-twentieth of the agreed rent or deposit”. It has no method for combining a deposit change with a rent change, so ask your local government’s lease counselling office or the Housing Lease Dispute Mediation Committee.
Q. The landlord refuses renewal saying they will move in. Then what?
A. The landlord (including their parents or children) actually moving in is a lawful ground for refusal (Art. 6-3(1) item 8). But if they then rent it to someone else during the period the lease would have run, they owe you damages (Art. 6-3(5)).
Official source (Korean): https://www.law.go.kr/법령/주택임대차보호법
This guide explains Korean law in general terms and is not legal advice. Laws change, so check the official text before you act.
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