Brokering a 899-million-won apartment in Seoul carries a fee ceiling of 3,596,000 won. If the same apartment sells for 900 million won, the ceiling becomes 4,500,000 won. A price rise of one million won lifts the maximum fee by 904,000 won, because the transaction crosses the boundary where the rate moves from 0.4% to 0.5%.
That step does not appear at every boundary. At the 200-million-won threshold the fee immediately below and the fee at the threshold are identical, because a monetary cap applies in that band. What matters when reading the rate table is not the percentages but where the caps stop and start.
How the fee is calculated
The formula is simple: transaction amount multiplied by the ceiling rate, then the lower of that figure and the band's cap where one exists. For housing, the fee is agreed between client and licensed broker within the ceiling set by metropolitan or provincial ordinance, and in a sale it is charged to seller and buyer separately, as the Easy Law information service sets out. The total a brokerage collects on one sale is therefore twice the figure in the table.
Under the Seoul ordinance, sale and exchange rates run 0.6% below 50 million won (capped at 250,000 won), 0.5% from 50 million to under 200 million (capped at 800,000 won), 0.4% from 200 million to under 900 million, 0.5% from 900 million to under 1.2 billion, 0.6% from 1.2 billion to under 1.5 billion, and 0.7% at 1.5 billion and above. Lease rates run 0.5% below 50 million (capped at 200,000 won), 0.4% from 50 million to under 100 million (capped at 300,000 won), 0.3% from 100 million to under 600 million, 0.4% from 600 million to under 1.2 billion, 0.5% from 1.2 billion to under 1.5 billion, and 0.6% at 1.5 billion and above.
Absent a separate agreement, payment falls due on the day the transaction funds are fully paid — the balance-payment date, not the contract date.
The size of the step at each boundary
Using the Seoul sale table, the ceiling was calculated for each boundary amount and for the figure one million won below it.
| Boundary | Ceiling just below (KRW) | Ceiling at boundary (KRW) | Increase (KRW) |
|---|---|---|---|
| 200 million | 800,000 (cap applied) | 800,000 | 0 |
| 900 million | 3,596,000 | 4,500,000 | 904,000 |
| 1.2 billion | 5,995,000 | 7,200,000 | 1,205,000 |
| 1.5 billion | 8,994,000 | 10,500,000 | 1,506,000 |
The zero in the first row is by design. Applying 0.5% to 199 million won gives 995,000 won, but the 800,000-won cap binds; applying 0.4% to 200 million won gives exactly 800,000 won. The cap stitches the two bands together. The same holds for leases, where no step appears at the 50-million or 100-million boundaries.
Above 900 million won the caps disappear and a step survives at every boundary: 904,000 won at 900 million, 1,205,000 won at 1.2 billion, and 1,506,000 won at 1.5 billion. Add the separate 10% VAT and the real gap at the 1.5-billion boundary reaches 1,656,600 won. On the lease side, the 600-million boundary produces a 603,000-won step between 1,797,000 won at 599 million and 2,400,000 won at 600 million.
What the rate table really discloses is not its percentages but the point where the caps run out. That is the only place a step appears.
Converting monthly rent into a transaction amount
A lease combining a deposit with monthly rent has to be converted first. The Enforcement Rules of the Licensed Real Estate Agents Act add the monthly rent multiplied by 100 to the deposit, but where that result comes to less than 50 million won, the multiplier drops from 100 to 70. The condition attaches to the converted result, not to the deposit — which is where the calculation is most often botched.
| Deposit / monthly rent | Converted amount (KRW) | Rate and cap | Fee ceiling (KRW) |
|---|---|---|---|
| 5m / 400,000 | 33,000,000 (70x applied) | 0.5%, cap 200,000 | 165,000 |
| 10m / 500,000 | 60,000,000 | 0.4%, cap 300,000 | 240,000 |
| 10m / 600,000 | 70,000,000 | 0.4%, cap 300,000 | 280,000 |
| 20m / 700,000 | 90,000,000 | 0.4%, cap 300,000 | 300,000 |
| 20m / 800,000 | 100,000,000 | 0.3% | 300,000 |
The first row converts at 100x to 45 million won, which falls short of 50 million. The 70x multiplier then applies, giving 5 million + 28 million = 33 million won and a ceiling of 165,000 won at 0.5%. Calculated at 100x throughout, the figure would have been 225,000 won — 60,000 won too much.
The last two rows run the other way. At 90 million won converted, 0.4% gives 360,000 won, but the 300,000-won cap binds. At 100 million won, 0.3% gives exactly 300,000 won. The tenant paying 100,000 won more each month faces the same fee ceiling. Note also that renewing a lease involves no new brokerage and therefore no fee; the cap on renewal increases is worked through in the piece calculating the 5% renewal-right limit.
Officetels and commercial property follow a different scale
The housing table applies only to dwellings and their attached land. An officetel of 85㎡ or less in exclusive-use area with its own kitchen, toilet and bathing facilities carries a ceiling of 0.5% for sales and exchanges and 0.4% for leases; officetels outside those requirements, along with land, retail units and other property, are negotiated up to 0.9%, as the city of Ansan sets out.
The spread is wide. On a 500-million-won transaction, the 0.4% housing rate gives 2 million won, a qualifying officetel at 0.5% gives 2.5 million won, and retail property at 0.9% gives 4.5 million won — more than double for the same amount. Because floor area and fixtures decide which rate applies to an officetel, the building register is one more document to check.
Transactions in pre-sale rights are worth confirming too: the transaction amount is based on instalments already paid plus the premium, not on the full contract price.
Local ordinances and VAT
Rates are not uniform nationwide. Housing brokerage fees are set by ordinance of each metropolitan city, province or self-governing province, so details can differ by region. The table published by the city of Changwon shares Seoul's structure — 0.6% capped at 250,000 won for sales under 50 million, 0.5% capped at 200,000 won for leases under 50 million — but checking the table published by the local authority where the property sits is the safer step before signing.
VAT is not included in the fee. A separate 10% applies, so the 4.5 million won in the table becomes 4.95 million won in practice. Because the amount billed can vary with the brokerage's tax status, getting the VAT treatment in writing with the quote reduces disputes.
What to check
- Whether the amount sits on a boundary — 900 million, 1.2 billion and 1.5 billion for sales; 600 million, 1.2 billion and 1.5 billion for leases. Steps occur only here.
- Whether a cap applies — below 200 million for sales and below 100 million for leases, the cap often binds before the rate does.
- Whether the converted lease amount is under 50 million — if so the multiplier is 70, not 100, and the test applies to the converted figure rather than the deposit.
- Whether the quoted figure includes VAT — 10% is separate, adding 1.05 million won on a 1.5-billion-won sale.
- Whether the property counts as housing — an officetel needs 85㎡ or less plus kitchen, toilet and bathing facilities to qualify for 0.5%.
- When payment falls due — the balance-payment date absent any other agreement. A demand for payment at contract signing calls for checking what was agreed.
- The local ordinance — rates are a municipal matter; cross-check against the table published where the property is located.