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Real estate agent commissions in South Korea follow strict government regulations with capped rates based on property price brackets. Both buyers and sellers typically share commission costs, with specific rules governing different transaction types including sales, purchases, and rentals.
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South Korean real estate agent commissions are capped by law at 0.3% to 0.7% depending on property value, with both buyers and sellers legally responsible for payment.
Commission rates vary by transaction type and property price brackets, with tenants also required to pay agent fees for rental transactions.
| Property Price Range (KRW) | Maximum Commission Rate | Who Pays |
|---|---|---|
| Under 50 million | 0.6% (max 250,000 KRW) | Buyer & Seller (split) |
| 50-200 million | 0.5% (max 800,000 KRW) | Buyer & Seller (split) |
| 200-600 million | 0.4% | Buyer & Seller (split) |
| 600-900 million | 0.5% | Buyer & Seller (split) |
| Over 1.5 billion | 0.7% | Buyer & Seller (split) |
| Rental/Jeonse | 0.3-0.5% (varies) | Tenant |
How much commission do real estate agents usually charge in South Korea?
Real estate agent commissions in South Korea range from 0.3% to 0.7% of the property value, depending on the price bracket set by government regulations.
For properties under 50 million KRW, agents can charge up to 0.6% with a maximum cap of 250,000 KRW. Properties valued between 50-200 million KRW have a maximum commission rate of 0.5% capped at 800,000 KRW.
Mid-range properties from 200-600 million KRW are subject to a 0.4% maximum commission rate, while higher-value properties between 600-900 million KRW can incur up to 0.5% in commission fees. For luxury properties exceeding 1.5 billion KRW, the maximum commission rate increases to 0.7%.
These rates apply specifically to sales and purchase transactions in the South Korean residential property market as of September 2025.
Who is legally responsible for paying the agent's commission, the buyer, the seller, or both?
Both the buyer and seller are legally responsible for paying real estate agent commissions in South Korea for sales transactions.
The commission payment is typically split evenly between both parties unless they negotiate a different arrangement beforehand. This shared responsibility is established under South Korean real estate law and applies to all residential property transactions.
For rental transactions, tenants bear the responsibility for paying agent commissions, especially for Jeonse (deposit lease) contracts and monthly rental agreements. The landlord generally does not pay commission fees in rental scenarios.
If a transaction involves separate agents representing the buyer and seller, each party pays their respective agent's commission based on the agreed terms.
Does the commission rate depend on the price of the property or is it fixed by law?
Commission rates in South Korea are not fixed but are capped by law based on specific property price brackets.
The government establishes maximum commission rates that vary according to property value ranges. Agents and clients can negotiate rates below these caps, but cannot exceed the legally mandated maximums for each price bracket.
Properties under 50 million KRW have different maximum rates compared to those valued between 200-600 million KRW or luxury properties exceeding 1.5 billion KRW. This tiered system ensures commission rates remain proportional to property values.
The Ministry of Land, Infrastructure, and Transport regularly reviews and updates these price brackets and corresponding commission caps to reflect current market conditions.
It's something we develop in our South Korea property pack.
What is the official government-set maximum commission rate in South Korea?
| Property Price Range (KRW) | Maximum Commission Rate | Maximum Fee Cap (KRW) |
|---|---|---|
| Less than 50 million | 0.6% | 250,000 |
| 50-200 million | 0.5% | 800,000 |
| 200-600 million | 0.4% | No specific cap |
| 600-900 million | 0.5% | No specific cap |
| Over 1.5 billion | 0.7% | Subject to negotiation |
| Rental/Jeonse transactions | 0.3-0.5% | Varies by lease value |
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Are there different commission structures for buying, selling, and renting properties?
Yes, South Korea maintains different commission structures for buying, selling, and renting properties with distinct calculation methods and rate caps.
Sales and purchase transactions follow the tiered percentage system based on property value brackets, with rates ranging from 0.3% to 0.7% as outlined in government regulations. Both buyers and sellers participate in commission payments under this structure.
Rental transactions, including Jeonse (deposit lease) and monthly rental agreements, operate under a separate commission structure with typically lower percentage rates ranging from 0.3% to 0.5% of the lease value. Tenants exclusively bear responsibility for rental commission payments.
Lease transactions for commercial properties may have different commission structures compared to residential rentals, with rates often negotiated based on lease duration and property type.
How are commissions split if both the buyer and the seller are represented by agents?
When both buyer and seller have separate agents, each agent typically receives half of the total commission from the party they represent.
The buyer pays their agent's portion of the commission, while the seller pays their agent's portion, maintaining the shared responsibility principle established in South Korean real estate law. This arrangement ensures each agent is compensated by their respective client.
If the total commission for a 300 million KRW property is 1.2 million KRW (0.4%), each agent would receive 600,000 KRW from their respective client. The commission split arrangement should be clearly outlined in the representation agreements signed by each party.
Some transactions may involve co-brokering arrangements where agents agree to different commission splits, but this must be disclosed to all parties and comply with legal requirements.
Do tenants also need to pay agent fees when renting an apartment in South Korea?
Yes, tenants are required to pay brokerage fees when renting apartments in South Korea, with rates capped by government regulations based on lease value.
For Jeonse (deposit lease) contracts, tenants typically pay commission rates between 0.3% to 0.5% of the deposit amount to the agent who facilitated the rental agreement. Monthly rental agreements also require tenant-paid commissions calculated on the lease terms.
Rental commission rates are generally lower than sales transaction rates but still follow government-established maximum caps. Tenants cannot avoid these fees as they are legally mandated for agent services in rental transactions.
The exact commission amount depends on the rental value, lease duration, and specific terms negotiated between the tenant and agent, but must remain within legal maximums.
Landlords typically do not pay agent commissions in rental transactions, making tenants solely responsible for these fees in the South Korean rental market.
Can the commission be negotiated, and if so, what is the typical range of discounts people manage to get?
Commission rates can be negotiated within the legal cap limits, allowing clients to potentially secure lower rates than the maximum government-established percentages.
Negotiation success depends on market conditions, property location, agent competition, and transaction complexity. In competitive markets like Seoul, agents may be more willing to reduce commissions to secure clients, while in smaller cities, negotiation flexibility might be limited.
Typical discount ranges are not officially published by government authorities, and actual negotiated rates vary significantly by region, agent, and specific transaction circumstances. Some clients report achieving 10-20% reductions from maximum rates, while others pay full cap rates.
High-value properties often provide more negotiation leverage due to larger absolute commission amounts, potentially allowing buyers and sellers to secure better terms. Multiple property transactions or repeat clients may also qualify for reduced commission rates.
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Are there any additional service charges on top of the commission, such as VAT or administrative fees?
Yes, additional charges beyond the base commission may apply to South Korean real estate transactions, including legal fees, registration fees, and stamp duties.
Legal fees typically range from 0.5% to 1% of the property value for attorney services required during the transaction process. Registration fees and stamp duties can add another 0.2% to 0.5% to the total transaction costs.
VAT may be collected by real estate agencies if they are registered VAT entities, though this varies by agency size and registration status. Some agencies include VAT in their quoted commission rates, while others may add it separately.
Administrative fees for document preparation, translation services, and other paperwork processing may incur additional costs ranging from 100,000 to 500,000 KRW depending on transaction complexity.
These additional charges are separate from agent commissions and should be clearly disclosed during the initial consultation to avoid unexpected costs at closing.
How do commissions differ between Seoul and smaller cities or rural areas?
The official government commission cap table applies nationwide, meaning legal maximum rates remain identical across Seoul, smaller cities, and rural areas throughout South Korea.
However, actual negotiated commission rates may be lower in smaller cities and rural areas due to different market conditions, reduced competition among agents, and lower property values that result in smaller absolute commission amounts.
Seoul's competitive real estate market often sees agents charging closer to maximum cap rates due to high demand and premium service expectations from clients dealing with expensive properties. Rural areas may offer more negotiation flexibility given slower transaction volumes.
The concentration of real estate agencies in Seoul provides more service options but may also maintain higher commission standards, while smaller cities might have fewer agents competing for limited transaction volume.
Regional economic conditions and property market activity levels influence how closely actual rates approach the government-established maximums in different areas.
What happens if a deal falls through—does the agent still get paid in South Korea?
Agents do not receive commission payments if deals fall through due to their negligence or intentional acts, according to South Korean real estate regulations.
Commission payments are only due upon successful completion of property transactions, meaning agents bear the risk of lost compensation if deals collapse for reasons within their control or due to their professional errors.
If transactions fail due to buyer or seller decisions unrelated to agent performance, the specific terms of the representation agreement determine whether partial payments or expense reimbursements apply. Most standard agreements specify no commission for incomplete transactions.
Agents may request compensation for expenses incurred during failed transactions, but this depends on the original service agreement terms and the circumstances leading to the deal's collapse.
This payment structure incentivizes agents to provide quality service and due diligence throughout the transaction process to minimize deal failure risks.
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Where can someone find the official government tables or guidelines that list exact commission caps by property price brackets?
The Ministry of Land, Infrastructure, and Transport publishes official commission cap tables and guidelines that detail exact commission rates by property price brackets.
Government portals including Gyeonggi Global and Seoul City websites provide comprehensive real estate brokerage fee schedules with current rate information and regulatory updates. These sources offer both Korean and English language versions for international investors.
Local government websites for major cities like Seoul, Busan, and Incheon maintain updated commission guidelines specific to their jurisdictions, though national rates generally apply across all regions.
Official legislative notices and government news portals regularly publish updates when commission cap changes or new regulations take effect, ensuring public access to current rate information.
Real estate industry associations and licensed agent organizations also distribute official rate tables to their members and provide public access to government-approved commission schedules.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding South Korean real estate agent commissions is crucial for successful property transactions in this regulated market.
As of September 2025, the government-capped commission structure provides transparency while allowing negotiation flexibility within legal limits, making it essential to research current rates before engaging real estate services.
Sources
- Korea JoongAng Daily - Real Estate Commission Rates
- The Korea Herald - Property Commission Guidelines
- Gyeonggi Global - Real Estate Brokerage FAQ
- BambooRoutes - Moving to South Korea Property Guide
- Korea Biz Wire - Government Commission Cap Changes
- Seoul Metropolitan Government - Real Estate Brokerage Fees
- Global Property Guide - South Korea Buying Guide
- Chosun Business - Real Estate Market Analysis