Authored by the expert who managed and guided the team behind the South Korea Property Pack
Everything you need to know before buying real estate is included in our South Korea Property Pack
South Korea's rental market works differently from most Western countries, with a unique deposit system called jeonse that can dramatically change your investment math.
We constantly update this blog post to reflect the latest regulations, rent levels, and market conditions in South Korea.
Whether you're eyeing a studio in Seoul's Gangnam district or a family apartment in Busan, understanding these local nuances is essential before you invest.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in South Korea.
Insights
- Seoul's median monthly rent crossed 1 million won (around $700 USD) for the first time in early 2026, driven by the ongoing shift from jeonse deposits to wolse monthly payments.
- Gross rental yields in Seoul typically range from 2% to 3.2%, which is lower than most Asian capitals because property prices are high relative to rents.
- Foreigners must report their South Korea property purchase to the local district office within 60 days, but no residency visa is required to own or rent out residential real estate.
- The 5% rent increase cap only applies when a tenant exercises their legal right to renew for a second two-year term, so landlords can set market rates for new tenants.
- Short-term rentals in Seoul average around 63% occupancy with nightly rates near $84 USD, but operating legally requires navigating accommodation registration rules that many investors underestimate.
- Neighborhoods like Gwanak-gu and Dongdaemun-gu in Seoul offer higher yields (up to 4% to 5% gross) because property prices are lower while student and commuter demand stays strong.
- Walking distance to a Seoul Metro station, especially Line 2, can add 10% to 15% to your monthly rent because commute time is the top priority for Korean tenants.
- Furnished studios rent about two weeks faster than unfurnished ones in Seoul, particularly when targeting young professionals, students, and expats who value move-in convenience.
Can I legally rent out a property in South Korea as a foreigner right now?
Can a foreigner own-and-rent a residential property in South Korea in 2026?
As of early 2026, foreigners can legally buy, own, and rent out residential property in South Korea without needing a residency visa or special permit.
The most common ownership structure for foreign investors in South Korea is direct individual ownership, though some choose to set up a Korean corporation for tax or liability reasons.
The main administrative hurdle is that foreign buyers must report their property acquisition to the local district office within 60 days of purchase, and there has been ongoing public debate about tightening these rules, though no major restrictions have been enacted yet.
If you're not a local, you might want to read our guide to foreign property ownership in South Korea.
Do I need residency to rent out in South Korea right now?
You do not need to live in South Korea to be a landlord, and many foreign investors manage their South Korea rental properties entirely from abroad using local agents and property managers.
To collect rental income legally, you will need a Korean tax identification number, which you can obtain through the National Tax Service even as a non-resident.
A Korean bank account is not strictly required by law, but in practice it makes rent collection and utility payments much easier since most tenants and building managers prefer domestic transfers.
Remote management is definitely feasible if you hire a licensed real estate agent (called a junggaesa) to find tenants and a property manager to handle maintenance, keys, and tenant issues on your behalf.
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What rental strategy makes the most money in South Korea in 2026?
Is long-term renting more profitable than short-term in South Korea in 2026?
As of early 2026, long-term renting with monthly payments (called wolse) is generally the safer and simpler choice for foreign investors in South Korea, though short-term rentals can generate higher revenue in prime tourist areas if you handle compliance correctly.
A well-managed long-term rental in Seoul might bring in around 15 to 20 million won per year (roughly $10,500 to $14,000 USD or 9,700 to 12,900 EUR), while a comparable short-term rental in a tourist hotspot could potentially earn 25 to 35 million won ($17,500 to $24,500 USD or 16,100 to 22,600 EUR), though with higher costs and regulatory risks.
Short-term renting tends to outperform financially in neighborhoods like Hongdae, Myeongdong, and Haeundae in Busan, where tourist foot traffic stays consistently high throughout the year.
What's the average gross rental yield in South Korea in 2026?
As of early 2026, the average gross rental yield for residential properties in South Korea ranges from about 2.5% to 3.5%, with Seoul sitting at the lower end and smaller cities offering higher returns.
In Seoul, expect gross yields between 2% and 3.2%, while other major cities like Busan, Daegu, and Daejeon typically deliver 3% to 5% gross yields.
Studios and small one-bedroom apartments near universities and subway stations usually achieve the highest gross yields in South Korea because they attract steady demand from students and young professionals while keeping purchase prices relatively affordable.
By the way, we have much more granular data about rental yields in our property pack about South Korea.
What's the realistic net rental yield after costs in South Korea in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in South Korea typically falls between 1.5% and 2.8%, depending on location and how well you manage expenses.
In Seoul, most landlords realistically see net yields of 1.2% to 2.2%, while investors in other major Korean cities can expect 2% to 3.8% net after costs.
The three main cost categories that eat into your gross yield in South Korea are building maintenance fees (called gwanlibi, which can run 150,000 to 400,000 won monthly), income taxes that vary based on your resident or non-resident status, and leasing commissions plus property management fees if you're operating remotely.
You might want to check our latest analysis about gross and net rental yields in South Korea.
What monthly rent can I get in South Korea in 2026?
As of early 2026, typical monthly rents in Seoul are around 700,000 to 900,000 won ($490 to $630 USD or 450 to 580 EUR) for a studio, 1 to 1.6 million won ($700 to $1,120 USD or 645 to 1,030 EUR) for a one-bedroom, and 1.6 to 2.8 million won ($1,120 to $1,960 USD or 1,030 to 1,800 EUR) for a two-bedroom, all typically requiring a deposit of 10 to 60 million won on top.
For a decent studio in Seoul, a realistic entry-level monthly rent is 650,000 to 800,000 won ($455 to $560 USD or 420 to 515 EUR), usually paired with a deposit around 10 million won.
A typical one-bedroom apartment in a good Seoul neighborhood rents for 1 to 1.4 million won ($700 to $980 USD or 645 to 900 EUR) per month, with deposits commonly ranging from 10 to 30 million won.
For a two-bedroom apartment in Seoul, expect to collect 1.6 to 2.5 million won ($1,120 to $1,750 USD or 1,030 to 1,610 EUR) monthly, though premium districts like Gangnam or Seocho can push rents above 3 million won.
If you want to know more about this topic, you can read our guide about rents and rental incomes in South Korea.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in South Korea in 2026?
What's the total "all-in" monthly cost to hold a rental in South Korea in 2026?
As of early 2026, the total all-in monthly cost to hold a typical rental property in South Korea runs between 350,000 and 650,000 won ($245 to $455 USD or 225 to 420 EUR) for a Seoul apartment, not counting income taxes.
A realistic range covering most standard rental properties in South Korea is 250,000 to 700,000 won ($175 to $490 USD or 160 to 450 EUR) per month, with variation depending on building age, amenities, and whether you use a property manager.
In South Korea, the single largest contributor to monthly holding costs is usually the building maintenance fee (gwanlibi), which covers elevator maintenance, security, common area cleaning, and sometimes heating, and can easily reach 200,000 to 400,000 won monthly for a decent apartment complex.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in South Korea.
What's the typical vacancy rate in South Korea in 2026?
As of early 2026, the typical vacancy rate for well-located rental properties in South Korea ranges from about 4% to 12% in Seoul and 8% to 20% in other cities.
In Seoul, you should budget for roughly half a month to one and a half months of vacancy per year, while properties in smaller Korean cities may sit empty for one to two and a half months annually due to thinner tenant pools.
The main factor that causes vacancy rates to vary across South Korea neighborhoods is proximity to subway stations and major employment centers, since tenants prioritize short commutes and will pay more (or move faster) for transit-connected units.
Tenant turnover in South Korea typically peaks in February and March when the academic year ends and workers receive annual bonuses, creating a window where many leases expire and new ones begin.
We have a whole part covering the best rental strategies in our pack about buying a property in South Korea.
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Where do rentals perform best in South Korea in 2026?
Which neighborhoods have the highest long-term demand in South Korea in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in South Korea are Gangnam-gu (especially Yeoksam and Samseong), Songpa-gu (Jamsil area), and Mapo-gu (Hongdae and Gongdeok) in Seoul, all benefiting from strong transit access and employment clusters.
Families in South Korea gravitate toward Daechi-dong in Gangnam (famous for its hagwon academy district), Banpo in Seocho-gu, and Bundang in Seongnam city, where good schools, larger apartments, and safe neighborhoods drive consistent demand.
Students create strong rental demand in Sinchon and Hongdae (near Yonsei and Hongik universities), Anam (near Korea University), Sillim in Gwanak-gu (near Seoul National University), and Gung-dong in Daejeon (near KAIST).
Expats and international professionals in South Korea cluster in Itaewon and Hannam-dong in Yongsan-gu, Seongsu-dong in Seongdong-gu, and Yeouido (Seoul's financial district), where English-friendly services and international communities are well established.
By the way, we've written a blog article detailing what are the current best areas to invest in property in South Korea.
Which neighborhoods have the best yield in South Korea in 2026?
As of early 2026, the three neighborhoods with the best rental yields in South Korea are Gwanak-gu (Sillim area), Dongdaemun-gu (near Hoegi station), and Bupyeong in Incheon, where property prices are moderate but tenant demand from students and commuters stays solid.
These top-yielding neighborhoods in South Korea typically deliver gross rental yields of 3.5% to 5%, compared to the 2% to 2.5% you might see in premium Gangnam or Hannam-dong addresses.
The main characteristic that allows these neighborhoods to achieve higher yields is that property purchase prices remain affordable (often 30% to 50% lower than prime Seoul districts) while rents hold up reasonably well due to strong transit links and nearby universities or employment zones.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in South Korea.
Where do tenants pay the highest rents in South Korea in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in South Korea are Apgujeong and Cheongdam in Gangnam-gu, Hannam-dong in Yongsan-gu, and Banpo in Seocho-gu, with monthly rents often exceeding 3 to 5 million won ($2,100 to $3,500 USD or 1,930 to 3,220 EUR) for standard apartments.
In these premium Seoul neighborhoods, a typical two-bedroom apartment rents for 3 to 6 million won ($2,100 to $4,200 USD or 1,930 to 3,860 EUR) per month, with luxury units in new buildings commanding even higher prices.
What makes these neighborhoods command the highest rents in South Korea is the combination of brand-name apartment complexes (like Acro, Raemian, and Hillstate towers), top-tier school districts, and proximity to both Gangnam business centers and international amenities.
The typical tenant profile in these highest-rent neighborhoods includes C-suite executives, successful entrepreneurs, K-pop and entertainment industry professionals, and dual-income couples with children who prioritize prestigious addresses and elite school access.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in South Korea in 2026?
What features increase rent the most in South Korea in 2026?
As of early 2026, the three property features that increase monthly rent the most in South Korea are walking distance to a subway station (especially Seoul Metro Line 2), excellent soundproofing and insulation (critical in apartment living), and a flexible deposit structure that lets tenants pay a lower upfront deposit in exchange for higher monthly rent.
Being within a five-minute walk of a major subway station in Seoul can add roughly 10% to 15% to your monthly rent, making transit proximity the single most valuable feature for landlords in South Korea.
One commonly overrated feature that South Korea landlords invest in but tenants rarely pay extra for is high-end interior finishes like marble countertops or designer fixtures, since most renters prioritize location and building quality over luxury aesthetics.
An affordable upgrade that provides strong return on investment for South Korea landlords is installing a quality air conditioning and heating system (especially efficient ondol floor heating), which Korean tenants highly value for year-round comfort.
Do furnished rentals rent faster in South Korea in 2026?
As of early 2026, furnished apartments in South Korea typically rent about one to two weeks faster than unfurnished ones, especially for studios and one-bedrooms targeting students, young professionals, and expats who value move-in convenience.
Furnished rentals in South Korea generally command a rent premium of 5% to 15% over comparable unfurnished units, though the premium is highest for smaller apartments in areas with high turnover like Hongdae, Sinchon, and Itaewon.
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How regulated is long-term renting in South Korea right now?
Can I freely set rent prices in South Korea right now?
When signing a new lease with a new tenant in South Korea, landlords have full freedom to set the initial rent at whatever the market will bear, with no government-mandated price caps on starting rents.
However, when an existing tenant exercises their legal right to renew for a second two-year term under South Korea's "Lease 2.0" laws, rent increases are capped at 5%, which limits your pricing flexibility during that renewal period.
What's the standard lease length in South Korea right now?
The standard lease length for residential rentals in South Korea is two years, and tenants have a legal right to request one renewal for another two years (creating a potential 2+2 structure), though many landlords and tenants negotiate different terms.
Security deposits in South Korea vary enormously depending on whether you use a jeonse (large deposit, little or no monthly rent) or wolse (smaller deposit plus monthly rent) structure, with wolse deposits typically ranging from 5 to 30 million won ($3,500 to $21,000 USD or 3,220 to 19,300 EUR) or roughly 10 to 20 times the monthly rent.
Under South Korea's Housing Lease Protection Act, landlords must return the security deposit when the lease ends and the tenant vacates, though landlords can deduct for unpaid rent or documented damage beyond normal wear and tear.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in South Korea in 2026?
Is Airbnb legal in South Korea right now?
Short-term rentals like Airbnb can be legal in South Korea, but it is definitely not a free-for-all, and the rules depend on your property type, location, and whether you register under an approved accommodation category.
To operate a short-term rental legally in South Korea, you typically need to register as a type of lodging business (such as a "foreign tourist urban homestay" or minbak in rural areas), which involves paperwork with local authorities and meeting safety and insurance requirements.
South Korea does not have a nationwide cap on rental nights like some European cities, but building-level rules, zoning restrictions, and local government policies can effectively limit or prohibit short-term rentals in many ordinary residential apartments.
The most common consequence for operating an unlicensed or non-compliant short-term rental in South Korea is fines that can reach several million won, plus potential forced closure and difficulties with future property transactions.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in South Korea.
What's the average short-term occupancy in South Korea in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in South Korea is around 55% to 65%, with Seoul averaging approximately 63% according to market data platforms.
Realistically, most short-term rentals in South Korea experience occupancy rates ranging from 45% to 70%, with top performers in prime tourist locations occasionally reaching 75% or higher.
The highest occupancy months for short-term rentals in South Korea are typically April through May (cherry blossom season), September through October (autumn foliage), and late December (holiday travel), when both domestic and international tourism peaks.
The lowest occupancy months in South Korea are usually January through February (post-holiday lull and cold weather) and July through August in some areas (though Busan beach properties can see summer peaks), making these periods challenging for revenue.
Finally, please note that you can find much more granular data about this topic in our property pack about South Korea.
What's the average nightly rate in South Korea in 2026?
As of early 2026, the average nightly rate for short-term rentals in South Korea is approximately 120,000 won ($84 USD or 77 EUR), though this varies significantly by city, neighborhood, and property type.
A realistic range covering most short-term rental listings in South Korea runs from about 70,000 to 200,000 won ($49 to $140 USD or 45 to 129 EUR) per night, with budget listings near 50,000 won and luxury apartments exceeding 300,000 won.
The typical nightly rate difference between peak season and off-season in South Korea is around 30,000 to 50,000 won ($21 to $35 USD or 19 to 32 EUR), meaning you might charge 150,000 won per night during cherry blossom season but only 100,000 won in January.
Is short-term rental supply saturated in South Korea in 2026?
As of early 2026, the short-term rental market in South Korea is moderately competitive rather than severely oversaturated, meaning there is room to succeed but you will face real competition from thousands of established listings.
The number of active short-term rental listings in Seoul has been relatively stable over the past year, with growth slowing as regulatory scrutiny and building restrictions have made it harder for new hosts to enter the market.
The most oversaturated neighborhoods for short-term rentals in South Korea are Myeongdong, Hongdae, and the area around Seoul Station, where high tourist traffic has attracted dense competition and pushed down average occupancy for mediocre listings.
Neighborhoods in South Korea that still have room for new short-term rental supply include emerging areas like Seongsu-dong, Yeonnam-dong, and parts of Busan outside the core Haeundae beach zone, where tourism is growing but STR density remains lower.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about South Korea, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Korea Real Estate Board (REB) | Official government institution publishing housing market statistics used by policymakers and media. | We used REB as the anchor for rent and price trend data in South Korea. We also triangulated typical monthly rent figures for Seoul versus national averages. |
| Seoul Metropolitan Government | Official city government website describing real procedures for foreign property buyers. | We used it to confirm the 60-day reporting requirement for foreign buyers. We also grounded our "no residency required to buy" discussion in official administrative practice. |
| Korea Legislation Research Institute (KLRI) | Provides official, consolidated English translations of Korean statutes. | We used KLRI to anchor the legal framework of residential leases and tenant protections. We relied on the actual statute text rather than blog interpretations. |
| National Tax Service (NTS) | Korea's tax authority and the primary reference for tax registration and filing. | We used NTS as the starting point for describing what foreign landlords must do for tax compliance. We anchored all rental income tax guidance to official NTS resources. |
| PwC Worldwide Tax Summaries | Major global accounting firm with regularly updated tax references. | We used PwC to triangulate resident versus non-resident tax treatment as of January 2026. We kept the tax discussion accurate for readers outside Korea. |
| AirDNA | Widely used short-term rental data provider with transparent methodology. | We used AirDNA to estimate realistic short-term occupancy and nightly rates in Seoul. We based our STR revenue calculations on their market overview data. |
| Savills Research | Major global real estate consultancy with published research methods. | We used Savills to support the structural shift from jeonse to wolse and its investor implications. We added professional market context beyond raw indices. |
| Statistics Korea Census | National statistics office providing gold-standard census data. | We used census data to ground vacancy discussions in real empty-home numbers. We reality-checked vacancy assumptions against official statistics. |
| Gwanak-gu District Office | Official local government page explaining practical tenant and landlord rules. | We used it to confirm the 5% rent cap on lease renewals and the 2+2 renewal structure. We added a practical "how it works on the ground" perspective. |
| Invest Seoul | Official Seoul government-affiliated site summarizing housing rules for newcomers. | We used it to triangulate lease term norms and renewal notice windows in plain English. We kept the article accessible while staying consistent with the law. |
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.