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Seoul dominates South Korea's Airbnb market with the highest occupancy rates at 79% and monthly earnings averaging $1,475, while Busan and Jeju offer strong seasonal opportunities during summer months.
The South Korean short-term rental market shows significant variation across major cities, with Seoul commanding premium nightly rates of $65 while secondary cities like Daegu offer more affordable entry points at $47 per night. International guests gravitate toward Seoul and Busan, while domestic travelers prefer smaller cities like Jeonju and Daegu.
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Seoul offers the highest returns with 79% occupancy and $1,475 monthly earnings, while Busan attracts beach-focused guests with strong summer seasonality.
Secondary cities like Daegu and Jeonju provide lower competition and entry costs but generate significantly less revenue than major tourist destinations.
| City | Monthly Revenue (USD) | Occupancy Rate | Nightly Rate (USD) | Active Listings | Peak Season |
|---|---|---|---|---|---|
| Seoul | $1,475 | 79% | $65 | 23,591 | May, August |
| Busan | $1,119 | 61% | $63 | 8,758 | August |
| Daegu | $823 | 56% | $47 | 1,521 | August |
| Incheon | $801 | 44% | $59 | 3,215 | August |
| Jeonju | $785 | 41% | $61 | 2,008 | May |
How many nights do tourists typically book Airbnbs in South Korean cities?
Seoul leads with 288 booked nights annually per property, translating to an average stay of 3.5 days per guest visit.
Busan follows with 223 booked nights per year, averaging 3.1 days per trip. Daegu maintains consistent performance with 3.2-day average stays, while Incheon sees shorter visits averaging 2.9 days.
Jeonju records 150 booked nights annually, indicating lower overall demand but potentially less competition for hosts. The longer average stays in Seoul and Busan reflect these cities' positions as major tourist destinations with more attractions and activities that encourage extended visits.
Business travelers and international tourists in Seoul often extend their stays beyond typical weekend trips, contributing to the higher booking volume. Coastal Busan benefits from beach-focused tourism that naturally encourages longer relaxation-oriented visits.
What are the current nightly rates across major South Korean cities?
Seoul commands the highest nightly rates at $65 (89,509 KRW), reflecting its status as the country's primary tourist and business destination.
Busan closely follows at $63 (86,755 KRW) per night, supported by strong beach tourism demand. Jeonju maintains competitive rates at $61 (84,001 KRW) despite lower overall demand, likely due to its unique cultural attractions and limited accommodation supply.
Incheon averages $59 (81,247 KRW) nightly, benefiting from proximity to Incheon International Airport and Seoul accessibility. Daegu offers the most affordable entry point at $47 (64,722 KRW) per night, making it attractive for budget-conscious investors seeking lower competition.
These rate differences reflect varying tourism demand, local purchasing power, and competition levels across South Korean cities.
How do occupancy rates vary between cities throughout the year?
Seoul achieves the highest occupancy rate at 79%, demonstrating consistent year-round demand from both business and leisure travelers.
Busan maintains 61% occupancy with strong seasonal peaks during summer months when beach tourism drives demand. Daegu sustains 56% occupancy with more limited seasonality, indicating steady domestic visitor flow throughout the year.
Secondary markets show lower occupancy rates, with Incheon at 44% and Jeonju at 41%. These cities face greater competition from traditional hotels and less concentrated tourist demand compared to primary destinations.
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The occupancy rate gaps between cities create different investment strategies - Seoul offers consistent cash flow, while seasonal markets like Busan require careful peak period optimization to maximize returns.
Which cities attract more international versus domestic guests?
Seoul and Busan dominate international visitor arrivals, particularly in tourist-concentrated districts like Hongdae, Gangnam, and Haeundae Beach.
International travelers prefer these major cities due to better transportation connections, English-language services, and concentrated attractions. Seoul's Itaewon and Jongno districts specifically cater to foreign visitors with international dining and entertainment options.
Secondary cities including Daegu, Jeonju, and Incheon primarily serve domestic travelers seeking affordable getaways or business trips. These markets rely more heavily on Korean tourists exploring regional destinations or attending local events and festivals.
The international versus domestic split significantly impacts pricing strategies, with properties targeting foreign guests able to command premium rates during peak international travel seasons.
When are the busiest travel seasons and how do prices change?
| City | Peak Season | Secondary Peak | Price Premium | Seasonality Level |
|---|---|---|---|---|
| Seoul | May (Spring) | August (Summer) | High | Strong |
| Busan | August (Summer) | July (Summer) | Very High | Strong |
| Daegu | August (Summer) | - | Moderate | Limited |
| Incheon | August (Summer) | - | Moderate | Strong |
| Jeonju | May (Spring) | - | High | Strong |
How much do Airbnb hosts typically earn monthly in different cities?
Seoul hosts generate the highest monthly revenue at $1,475 (2,031,178 KRW), supported by premium nightly rates and exceptional 79% occupancy.
Busan hosts earn $1,119 (1,540,941 KRW) monthly, benefiting from strong summer demand and beach tourism. The earnings gap between Seoul and Busan reflects Seoul's year-round consistency versus Busan's seasonal concentration.
Secondary city earnings drop significantly, with Daegu hosts averaging $823 (1,133,328 KRW), Incheon at $801 (1,103,033 KRW), and Jeonju at $785 (1,080,999 KRW) monthly. These lower figures reflect reduced tourism demand and increased competition from traditional accommodations.
The substantial earning differences between primary and secondary cities suggest that property investment success heavily depends on location selection and target market understanding.
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Which neighborhoods are most popular with guests in each city?
Seoul's most sought-after neighborhoods include Hongdae for nightlife and youth culture, Gangnam for business travelers and luxury experiences, Itaewon for international visitors, and Jongno for traditional culture and historic sites.
Busan guests concentrate around Haeundae Beach and Gwangalli Beach areas, drawn by ocean views, beach access, and vibrant waterfront dining scenes. These coastal neighborhoods command premium rates during summer months.
Jeju visitors prefer Seogwipo for southern coastline access, Aewol-eup for scenic rural experiences, and Jungmun Beach for resort-style accommodations. Daegu guests favor Jung-gu downtown core for business and shopping accessibility.
Jeonju attractions center on Innovation City for modern amenities and Hanok Village neighborhoods for traditional Korean architecture experiences. Understanding neighborhood preferences helps optimize property selection and marketing strategies.
How many active Airbnb listings exist in each major city currently?
Seoul dominates the market with 23,591 active listings as of September 2025, creating intense competition but also indicating strong demand sustainability.
Busan follows with 8,758 listings, concentrated primarily around beach areas and tourist districts. The high listing count reflects both strong demand and significant host interest in coastal tourism opportunities.
Secondary cities show much smaller markets: Incheon has 3,215 listings, Jeonju maintains 2,008, and Daegu operates 1,521 active properties. These lower numbers suggest either limited demand or restricted supply due to local regulations or market conditions.
The listing concentration in Seoul and Busan indicates market maturity but also warns of potential oversaturation risks for new investors entering these competitive markets.
What property types work best in each city?
Seoul performs best with serviced apartments in business districts and guesthouses near major tourist attractions like Hongdae and Gangnam.
Busan guests prefer houses and apartments offering beach proximity, with ocean views commanding significant rate premiums. Properties within walking distance of Haeundae and Gwangalli beaches maintain highest occupancy rates.
Jeju Island shows strong demand for guesthouses and villas featuring scenic views and resort-style amenities. Traditional Hanok properties also attract premium rates from cultural tourism segments seeking authentic Korean experiences.
Daegu and Jeonju markets favor standard apartments and guesthouses, with less emphasis on specialized property types. These secondary cities prioritize affordability and convenience over unique accommodation experiences.
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How do regulations and taxes differ across South Korean cities?
Seoul enforces the strictest short-term rental regulations, requiring mandatory business registration, comprehensive tax compliance including income tax and VAT, and specific safety regulations.
Seoul also restricts officetel properties for short-term rentals and maintains clear penalty structures for non-compliance. While enforcement remains relatively lenient as of September 2025, regulatory framework exists for future tightening.
Other major cities follow similar business registration and tax compliance requirements but generally maintain more flexible enforcement approaches. Local zoning laws and housing regulations vary significantly between municipalities.
All South Korean cities require hosts to report rental income for tax purposes, with rates varying based on total annual earnings and property classification. Understanding local compliance requirements prevents costly penalties and operational disruptions.
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What are guest satisfaction ratings like across different cities?
Seoul and Jeju consistently achieve the highest guest satisfaction ratings, particularly in central Seoul neighborhoods like Hongdae and Gangnam, and Jeju's beach areas.
High-rated properties emphasize modern amenities, exceptional cleanliness standards, and convenient location access to major attractions and transportation. Seoul properties benefit from excellent subway connectivity and diverse dining options.
Jeju properties score highly due to natural beauty, resort-style amenities, and unique cultural experiences. Busan coastal properties maintain strong ratings during peak season but may struggle with maintenance standards during off-peak periods.
Secondary cities like Daegu show consistent but lower overall ratings, often limited by fewer amenities and attractions compared to major tourist destinations. Guest expectations adjust accordingly, focusing more on value and basic comfort than luxury experiences.
How does competition and market saturation compare between major cities?
Seoul represents the most saturated market with highest competition among its 23,591 listings, requiring exceptional marketing and service standards to achieve success.
Busan shows rapidly increasing competition, particularly near popular beaches where 8,758 listings compete for seasonal tourism demand. New entrants face established hosts with strong review histories and repeat guest relationships.
Secondary cities offer less saturated markets but also significantly reduced demand pools. Incheon, Jeonju, and Daegu provide easier market entry but lower revenue potential compared to primary tourist destinations.
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Market saturation levels directly impact pricing power, occupancy rates, and operational requirements, with saturated markets demanding higher service levels and competitive differentiation strategies for sustainable profitability.
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.
Seoul offers the strongest Airbnb investment potential with highest earnings and occupancy, while Busan provides seasonal opportunities for beach-focused properties.
Secondary cities like Daegu and Jeonju present lower-risk entry points but generate significantly reduced revenue compared to major tourist destinations.
Sources
- Airbtics - Annual Airbnb Revenue in Busan South Korea
- Airbtics - Annual Airbnb Revenue in Seoul South Korea
- Airbtics - Annual Airbnb Revenue in Daegu South Korea
- Airbtics - Annual Airbnb Revenue in Jeonju South Korea
- Airbtics - Annual Airbnb Revenue in Incheon South Korea
- Airbtics - Airbnb Rules in Seoul South Korea
- Airbtics - Tourism Statistics Daegu KR
- Airbtics - Tourism Statistics Seoul KR
- iVisitKorea - Best Airbnbs in Hongdae
- CozyCozy - South Korea Holiday Rentals