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Free reference guide: Real Estate Reference
About Real Estate Reference
The Korean Real Estate Reference is a comprehensive, searchable guide to property terms used in the South Korean real estate market. It covers 42 key entries spanning transactions, taxes, property registration, mortgage loans, leasing structures, urban development, investment metrics, and regulatory frameworks -- each with practical examples and numerical details.
Whether you are a first-time homebuyer navigating jeonse and wolse, an investor calculating Cap Rate and NPV, or a professional needing quick access to acquisition tax rates and LTV limits, this reference delivers concise answers organized by category.
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Key Features
- Covers 42 Korean real estate terms across 8 categories: transactions, taxes, registration, loans, leasing, development, investment, and regulations
- Real tax rate examples for acquisition tax (1-3%), property tax (0.1-0.4%), capital gains tax (6-45%), and comprehensive real estate tax
- Mortgage regulation details including LTV, DTI, and DSR ratios with regulated vs. non-regulated area limits
- Korean leasing structures explained: jeonse (lump-sum deposit), wolse (monthly rent), and semi-jeonse with deposit-rent conversion rates
- Investment analysis formulas including Cap Rate, NPV/IRR, yield calculation, and gap investment strategy
- Registration procedures for ownership transfer, mortgage, provisional registration, and lease rights
- Development terms like FAR, BCR, reconstruction, redevelopment, and sale price cap explained with numerical examples
- Key real estate laws summarized: Housing Lease Protection Act, Building Act, National Land Planning Act, and Licensed Real Estate Agent Act
Frequently Asked Questions
What Korean real estate terms does this reference cover?
This reference covers 42 terms organized into 8 categories: Transactions (sales contract, down payment, interim/final payment, brokerage fee), Taxes (acquisition, property, comprehensive real estate, capital gains, VAT), Registration (ownership transfer, mortgage, registry certificate, provisional, lease right), Loans (LTV, DTI, DSR, amortization methods), Leasing (jeonse, wolse, semi-jeonse, Housing Lease Protection Act, deposit-rent conversion), Development (reconstruction, redevelopment, FAR, BCR, sale price cap), Investment (REITs, gap investment, yield, NPV/IRR, Cap Rate), and Regulations (6 key laws).
What is the difference between jeonse and wolse in Korean real estate?
Jeonse is a uniquely Korean leasing system where the tenant pays a large lump-sum deposit (returned at lease end) with no monthly rent. Wolse is a traditional monthly rent structure with a smaller deposit plus recurring monthly payments. Semi-jeonse is a hybrid. This reference includes deposit-rent conversion rate formulas (statutory cap: base rate + 2%) for comparing the two.
How are Korean property taxes calculated?
This reference details four main taxes: Acquisition tax (1-3% for homes, 8-12% surcharge for multiple homeowners), Property tax (0.1-0.4% of assessed value, paid July and September), Comprehensive real estate tax (0.5-2.7% on assessed value exceeding 900M KRW), and Capital gains tax (70% for under 1 year, down to basic 6-45% rates for 2+ year holdings, with single-home exemptions).
What are LTV, DTI, and DSR in Korean mortgage lending?
LTV (Loan-to-Value) limits how much you can borrow relative to property value (40-50% in regulated areas, 70% elsewhere). DTI (Debt-to-Income) caps annual principal and interest payments relative to income (40-50%). DSR (Debt Service Ratio) includes all loans, not just the mortgage, with a general 40% limit. Each is explained with formulas and regulatory thresholds.
How do I calculate rental yield on Korean real estate?
This reference provides two formulas: Gross yield = (Annual rental income / Investment) x 100, and Net yield = ((Annual rental income - Expenses) / Investment) x 100. Additional investment metrics include Cap Rate (NOI / Property Price), NPV, and IRR for comprehensive profitability analysis.
What is gap investment in Korean real estate?
Gap investment means buying a property by investing only the difference (gap) between the sale price and the jeonse deposit. For example, if a property costs 500M KRW and the jeonse deposit is 400M KRW, you only need 100M KRW of your own capital. This leveraged strategy is explained with examples and risk considerations in the Investment category.
What does a Korean registry certificate (deunggibu deungbon) contain?
A Korean property registry certificate has three sections: the Title section (location, area, structure), Section A (Gapgu -- ownership-related matters), and Section B (Eulgu -- other rights such as mortgages and lease rights). This reference explains each section and related registration types including provisional registration and lease right registration.
Is the Korean Real Estate Reference available in English?
Yes, the reference is fully bilingual. All 42 entries are available in both Korean and English, automatically switching based on your language preference. This makes it useful for Korean residents, foreign investors, and anyone studying the Korean property market.