South Korea Jeonse Calculator: Monthly Saving for the Deposit
Work out how much you need to save each month to reach a Korean jeonse deposit by your target date — the large up-front lump sum tenants pay under Korea's distinctive jeonse rental system instead of monthly rent.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly contribution | Total contributed | Growth toward goal |
|---|---|---|---|
| ₩200M in 5yr · 3% | $3,093,738.13 | $185,624,287.97 | $14,375,712.03 |
| ₩300M in 7yr · 3% | $3,213,990.02 | $269,975,161.65 | $30,024,838.35 |
| ₩150M in 4yr · 2.5% | $2,974,605.10 | $142,781,045.01 | $7,218,954.99 |
| ₩500M in 10yr · 4% | $3,395,590.24 | $407,470,828.99 | $92,529,171.01 |
How This Calculator Works
Enter the jeonse deposit you need, the return on your savings, and how many years you have. The calculator finds the monthly saving required to reach the deposit, accounting for compounding. Jeonse (전세) lets a tenant pay a large refundable deposit — often 50–80% of the home's value — instead of monthly rent; the landlord keeps and invests the deposit, returning it in full at the end of the lease.
The Formula
Required Monthly Saving (Sinking Fund)
FV = goal amount, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
To reach a ₩200,000,000 jeonse deposit in 5 years at a 3% savings return, you'd need to save about ₩3,093,738 a month. Jeonse is a uniquely Korean housing arrangement: rather than paying monthly rent, the tenant hands the landlord a very large lump-sum deposit (보증금) for the lease term (typically two years), pays little or no monthly rent, and gets the entire deposit back at the end. Because the deposits are so large, most tenants combine their own savings with a jeonse loan from a bank — so this is the savings-only picture.
Key Insight
Jeonse is one of the most distinctive features of the Korean housing market, and understanding the cash requirement is essential for anyone renting there. The mechanics: instead of monthly rent, the tenant deposits a huge sum — historically around 50–80% of the property's market value — with the landlord, who holds it for the lease (usually two years, renewable) and returns it in full at the end; the landlord's 'rent' is the investment return they earn on that deposit. For tenants, jeonse can be cheaper than monthly rent (wolse) over time because little or no monthly payment is due, and the deposit comes back — but it requires assembling an enormous lump sum, which is why jeonse loans (전세자금대출) from banks are ubiquitous, with the tenant paying loan interest instead of rent. This calculator shows the pure savings path: how much to set aside monthly to reach the deposit yourself by a target date; in reality most people save a portion and borrow the rest, so treat this as the self-funded benchmark. Key risks the calculator doesn't model but every jeonse tenant should weigh: deposit safety. If a landlord can't repay (so-called 'jeonse fraud' and the risk in falling markets where the deposit exceeds what the home can be sold for), the tenant's life savings are at risk — so checking the property's registry, the landlord's debts, securing a confirmed date (확정일자) and priority right, and using deposit-guarantee insurance (전세보증금 반환보증) are crucial protections. As interest rates and house prices shift, the balance between jeonse and monthly rent moves too. This calculator gives the monthly saving to reach the deposit at a steady return; for a full plan, factor in a jeonse loan, the lease term, and the deposit-protection steps.
Jeonse loans: the bank's role in 80% of jeonse contracts
The vast majority of jeonse tenants don't save the full deposit themselves — they borrow most of it from a bank via a jeonse loan (전세자금대출). Government-backed jeonse loans are available through agencies like the Korea Housing Finance Corporation (HF, 주택금융공사) and the Korea Housing & Urban Guarantee Corporation (HUG, 주택도시보증공사).
Typical jeonse loan structure for 2026: loan-to-deposit ratio up to 80% (e.g. borrow ₩240M against a ₩300M deposit). Interest rates 3.5-5.5% annually depending on borrower and product. Loan term matches the lease term (typically 2 years, renewable). Repayment: interest-only during the lease, principal returned in full when the landlord returns the deposit at lease end.
Total cost calculation: a ₩300M jeonse with ₩240M loan at 4% interest costs ₩9.6M/year in interest (₩800k/month). Compare with monthly rent (wolse) for an equivalent property: typically ₩1.5-2M/month. The jeonse loan path saves roughly ₩7-15M/year vs equivalent wolse — which is why jeonse persists despite the capital requirement. The trade-off: principal risk if the landlord defaults (the deposit return failure problem).
Deposit insurance: HUG protection against landlord default
The jeonse fraud crisis of 2022-2023 (수십만 명의 피해자, hundreds of thousands of victims) led to dramatic tightening of deposit return insurance. The Korea Housing & Urban Guarantee Corporation (HUG) now offers mandatory or strongly-recommended insurance that guarantees the landlord will return the deposit at lease end.
Cost: HUG insurance premiums are 0.122-0.154% of the deposit amount per year (varies by deposit size and property type). For a ₩300M deposit: insurance premium is approximately ₩366,000-₩462,000/year. The premium is usually paid by the tenant, but some contracts shift it to the landlord.
Eligibility for HUG insurance: the property's official market value must exceed the deposit amount by a margin (preventing 'underwater' jeonse where deposit > property value, the situation that caused the 2022-23 fraud wave). New HUG rules require property assessment within the last year and proof of clean title. Properties failing eligibility (often older buildings in declining neighborhoods) cannot be insured — strongly suggesting tenants should avoid those contracts entirely.
Jeonse to wolse: the market is shifting toward monthly rent
Korean rental markets are gradually transitioning from pure jeonse toward hybrid 'banjeonse' (반전세) — partial deposit + monthly rent. As Korean interest rates rose in 2022-2024, landlords found jeonse less attractive (couldn't earn enough on the deposit relative to alternatives like deposits or REITs). Many converted to wolse or banjeonse contracts.
Banjeonse structure example: instead of pure ₩300M jeonse, the landlord offers ₩150M deposit + ₩600k/month rent. The conversion ratio (전환율) is typically 4-6% — meaning the ₩150M deposit reduction translates to ₩600k-₩750k/month additional rent (calculated as: 150M × 5% / 12 months = ₩625k/month).
For tenants without sufficient capital, banjeonse can be more accessible than pure jeonse — lower deposit means less loan needed. For tenants with capital, pure jeonse remains more cost-efficient if you can avoid the jeonse loan interest. Many young Koreans in 2024-2026 prefer banjeonse for flexibility, despite the higher total cost — accepting the trade-off for lower capital lock-up and easier mobility between cities.
Jeonse total cost comparison (₩300M deposit, 2-year lease)
Annual cost breakdown for a tenant in a typical Seoul jeonse scenario. Loan interest is the dominant cost component for most renters using government-backed jeonse loans.
| Cost component | Self-funded jeonse | 80% jeonse loan (₩240M at 4%) | Banjeonse (₩150M + ₩600k/mo) |
|---|---|---|---|
| Loan interest (annual) | ₩0 | ₩9,600,000 | ₩4,500,000 (on ₩90M loan) |
| Monthly rent (annual) | ₩0 | ₩0 | ₩7,200,000 |
| HUG insurance (annual) | ₩360,000-460,000 | ₩360,000-460,000 | ₩180,000-230,000 |
| Real estate fee (one-time) | ~₩2,400,000 | ~₩2,400,000 | ~₩2,400,000 |
| Total Year 1 cost | ~₩2,800,000 | ~₩12,400,000 | ~₩14,000,000 |
| Capital required upfront | ₩300M | ₩60M (down payment) | ₩60M (down payment) |
Compare to typical Seoul wolse for equivalent property: ₩2-3M/month = ₩24-36M/year + initial deposit ~₩20-50M. Jeonse remains the most cost-efficient option IF you can avoid jeonse loan interest. The jeonse loan path saves ₩12-24M/year vs equivalent wolse for most middle-class tenants.
Frequently Asked Questions
How is the monthly saving for jeonse calculated?
It's the amount you'd need to set aside each month, with savings compounding at your return, to reach the deposit by your target date. To reach ₩200,000,000 in 5 years at 3%, that's about ₩3,093,738 a month. Most tenants save part and borrow the rest with a jeonse loan.
What is jeonse?
A uniquely Korean rental system where the tenant pays a large refundable lump-sum deposit (보증금) — often 50–80% of the home's value — instead of monthly rent, and gets it all back at the end of the lease (usually two years). The landlord profits from investing the deposit during the term.
Is jeonse cheaper than monthly rent?
It can be, over time, because there's little or no monthly rent and the deposit is returned — your main cost is the opportunity cost of the lump sum (or the interest on a jeonse loan). But it requires a huge amount of capital up front, which is why bank jeonse loans are so common among tenants.
Do people really save the whole deposit?
Usually not entirely — the deposits are so large that most tenants combine their own savings with a jeonse loan (전세자금대출), paying loan interest instead of rent. This calculator shows the self-funded savings path as a benchmark; in practice you'd save a portion and finance the remainder.
What are the risks of jeonse?
The big one is getting the deposit back. If the landlord can't repay — due to over-borrowing or a market fall where the deposit exceeds the home's value — your savings are at risk. Protect yourself by checking the property registry and landlord debts, securing a confirmed date (확정일자), and using deposit-return guarantee insurance.
References & Authoritative Sources
- MOLIT — Ministry of Land, Infrastructure and Transport — Jeonse market reform and tenant protection measures · consulted May 31, 2026 · Policy ministry — 2023-2024 jeonse fraud reforms, deposit return guarantee requirements
- HUG — Korea Housing & Urban Guarantee Corporation — Jeonse deposit return insurance (전세보증금 반환보증) · consulted May 31, 2026 · Public insurer — eligibility criteria, premium calculation, claims process
- HF — Korea Housing Finance Corporation — Jeonse loans — government-backed lending programs · consulted May 31, 2026 · Public lender — loan-to-deposit ratio limits, interest rates, repayment terms
Related Calculators
Methodology & Review
The monthly saving is the deposit needed each month to reach the jeonse deposit by the target date, with savings earning a steady return, compounded monthly. It assumes a constant return and end-of-month deposits, and does not model a jeonse loan (which most tenants use), interest-rate changes, or deposit-protection considerations.
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