Under Korea's lease renewal right, a landlord may raise the deposit or rent by at most 5%. On a 300 million won jeonse deposit that is 15 million won — worth 62,500 won a month once converted at the current 5.00% rate.
The statutory cap on converting a jeonse deposit into monthly rent rose from 4.5% to 4.75% after the Bank of Korea lifted its base rate to 2.75% in July 2026. Cutting a 300 million won jeonse to a 100 million won deposit caps rent at 791,667 won a month.
Converting a jeonse (lump-sum deposit lease) into wolse (monthly rent) uses a conversion rate: monthly rent times 12, divided by the converted deposit. The legal cap is the Bank of Korea base rate plus 2%. Here are the formula and worked examples.