{"id":5733,"date":"2026-10-14T14:34:16","date_gmt":"2026-10-14T05:34:16","guid":{"rendered":"https:\/\/bitpress.kr\/?p=5733"},"modified":"2026-10-14T14:34:16","modified_gmt":"2026-10-14T05:34:16","slug":"seoul-jeonse-renewal-right-tenants-saving","status":"publish","type":"post","link":"https:\/\/bitpress.kr\/en\/seoul-jeonse-renewal-right-tenants-saving\/","title":{"rendered":"Half of Seoul's jeonse leases are renewals. Why do tenants use their renewal right less?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Of Seoul apartment jeonse leases signed in January\u2013August this year, 50.8% were renewals by sitting tenants. That is close to double the 27.2% of 2023. Yet among renewals, the share that used the legal renewal right fell from 56.7% last year to 53.3% this year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When rents rise, you would expect tenants to reach first for the right that caps a deposit increase at 5%. So a falling usage rate is easy to read as tenants losing out to landlords.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the real story lies elsewhere. The renewal right can be used only once, and a renewal agreed with the landlord does not count as using it. In the market, one reading is that tenants are renewing by agreement for now and keeping that single use for the next renewal.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What does the renewal right protect against?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The renewal right (a tenant's right to demand an extension that the landlord cannot refuse without a legitimate reason) is set out in Korea's Housing Lease Protection Act. It can be used once, and it extends the lease by two years. The deposit can then rise by no more than 5% of the existing amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On an existing deposit of 500 million won (about $371,000), the cap is 25 million won (about $18,600). Five percent is a ceiling, not a required raise. A landlord can refuse renewal if the landlord or a parent or child intends to move in, but the landlord must prove that intent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key point: a lease extended by agreement with the landlord, or one that rolled over because neither side gave notice (implied renewal), does not count as using the right. Think of it as a one-time discount coupon. The difference is that it is not a fixed discount but a ceiling: the raise can go up to 5% and no further.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>How much have the numbers changed?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Land Ministry transaction data show renewals made up 50.8% of Seoul apartment jeonse leases in January\u2013August, 9.7 percentage points above the 41.1% of the same period last year. Over the same period, total jeonse leases fell 25.7% and new leases fell 38%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">August alone shows the trend more clearly. By Seoul city's count, 58.9% of August apartment jeonse deals were renewals, and 48.7% of those used the renewal right, down from 57.0% in August last year. Renewals without the right came to about 30.2% of all jeonse deals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Put simply, three in ten Seoul apartment jeonse leases in August were extended without the tenant using the renewal right.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Why aren't tenants using the right now?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The backdrop is rising rents and shrinking listings. According to the Korea Real Estate Board, Seoul apartment jeonse prices rose 7.35% in January\u2013August, the biggest rise since 2011. Real estate data platform Asil counted 19,743 Seoul apartment jeonse listings on Oct. 6, down 18.2% from a year earlier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this market, a tenant who uses the right now has no shield left two years later. The next renewal must be negotiated on new terms, and a raise above 5% becomes possible. Kwon Dae-jung, a professor of economics and real estate at Hansung University, said the lower usage rate suggests that \"tenants are not giving up the right but extending by agreement with landlords to keep an option they can use later.\"<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>On a 500 million won deposit, which choice costs less?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Take a tenant with a 500 million won (about $371,000) deposit. Using the right now means a 5% raise of 25 million won, to 525 million won. Agreeing to a 7% raise (an assumed rate) and keeping the right means 35 million won more, to 535 million won. For now, that is 10 million won (about $7,400) extra.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now suppose the landlord asks for 10% two years later. The tenant who already used the right pays 52.5 million won more, to 577.5 million won. The tenant who saved it uses it then and pays only 26.75 million won more, to 561.75 million won. Over four years, the saver pays 15.75 million won (about $11,700) less (hypothetical).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If instead the landlord asks for no raise two years later, the tenant who used the right first pays 10 million won less. And if the landlord decides to move in, the saved right may not secure a renewal. Put simply, saving the right is a bet that jeonse prices will be higher in two years.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li>When tenants stay put, who bears the cost?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Experts say this drop in moving can deepen the shortage of listings. Rising rents \u2192 tenants renew instead of moving \u2192 fewer homes come to market \u2192 rents rise again.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of this loop are people who need a new home. Someone looking for a first jeonse after a wedding or a job change has no right to save and no home to stay in. The more renewals rise, the fewer listings they can choose from.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"6\" class=\"wp-block-list\">\n<li>BITPRESS Insight<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">A falling usage rate does not mean tenants lost their right. A renewal by agreement leaves the right intact. So it is closer to a reading that more tenants are renewing by agreement for now and keeping a shield for the next renewal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the agreed raise tops 5%, whether that pays off depends on rents two years from now and on whether the landlord moves in. On a 500 million won deposit with an assumed 7% agreed raise, a 10% raise in two years means paying 15.75 million won less; no raise means having paid 10 million won more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At renewal, the question is not \"Does this raise top 5%?\" but \"Is what I pay extra now less than what I could pay in two years without the right?\"<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Sources<br><a href=\"https:\/\/m.sedaily.com\/article\/20096269\">https:\/\/m.sedaily.com\/article\/20096269<\/a><br><a href=\"https:\/\/www.callnews.co.kr\/news\/articleView.html?idxno=55965\">https:\/\/www.callnews.co.kr\/news\/articleView.html?idxno=55965<\/a><br><a href=\"https:\/\/www.segye.com\/newsView\/20261006500913\">https:\/\/www.segye.com\/newsView\/20261006500913<\/a><br><a href=\"https:\/\/casenote.kr\/%EB%B2%95%EB%A0%B9\/%EC%A3%BC%ED%83%9D%EC%9E%84%EB%8C%80%EC%B0%A8%EB%B3%B4%ED%98%B8%EB%B2%95\/%EC%A0%9C6%EC%A1%B0%EC%9D%983\">https:\/\/casenote.kr\/%EB%B2%95%EB%A0%B9\/%EC%A3%BC%ED%83%9D%EC%9E%84%EB%8C%80%EC%B0%A8%EB%B3%B4%ED%98%B8%EB%B2%95\/%EC%A0%9C6%EC%A1%B0%EC%9D%983<\/a><br><a href=\"https:\/\/casenote.kr\/%EB%B2%95%EB%A0%B9\/%EC%A3%BC%ED%83%9D%EC%9E%84%EB%8C%80%EC%B0%A8%EB%B3%B4%ED%98%B8%EB%B2%95\/%EC%A0%9C7%EC%A1%B0\">https:\/\/casenote.kr\/%EB%B2%95%EB%A0%B9\/%EC%A3%BC%ED%83%9D%EC%9E%84%EB%8C%80%EC%B0%A8%EB%B3%B4%ED%98%B8%EB%B2%95\/%EC%A0%9C7%EC%A1%B0<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Glossary<\/strong><br><strong>Right to demand a lease renewal<\/strong> \u2014 A tenant's one-time right to demand a two-year extension, with any deposit increase capped at 5%.<br><strong>Renewal contract<\/strong> \u2014 A jeonse or monthly-rent lease signed again with the sitting tenant instead of a new one.<br><strong>Implied renewal<\/strong> \u2014 A lease that continues on the same terms because neither landlord nor tenant gave notice in the set period before it ended.<br><strong>Real transaction price system<\/strong> \u2014 A Land Ministry website that publishes reported prices for home sales and leases.<br><strong>Asil<\/strong> \u2014 A real estate data platform that tracks apartment transaction prices and listing counts.<\/p>\n\n\n\n<p class=\"has-small-font-size wp-block-paragraph\">BITPRESS articles are information to help your investment decisions, not a recommendation to buy or sell any stock or coin. Investment decisions and their results are your own responsibility.<\/p>","protected":false},"excerpt":{"rendered":"<p>\uc62c\ud574 1~8\uc6d4 \uc11c\uc6b8 \uc544\ud30c\ud2b8 \uc804\uc138 \uc7ac\uacc4\uc57d \ube44\uc911\uc740 50.8%\ub85c \ub298\uc5c8\uc9c0\ub9cc, \uc7ac\uacc4\uc57d \uc911 \uac31\uc2e0\uc694\uad6c\uad8c\uc744 \uc4f4 \ube44\uc728\uc740 \uc9c0\ub09c\ud574 56.7%\uc5d0\uc11c \uc62c\ud574 53.3%\ub85c \uc904\uc5c8\ub2e4. \uc9d1\uc8fc\uc778\uacfc \ud569\uc758\ud574 \uc5f0\uc7a5\ud558\uba74 \ud55c \ubc88\ubfd0\uc778 \uad8c\ub9ac\uac00 \uadf8\ub300\ub85c \ub0a8\uae30 \ub54c\ubb38\uc5d0, \uc138\uc785\uc790\ub4e4\uc774 \uad8c\ub9ac\ub97c \ub2e4\uc74c \uc7ac\uacc4\uc57d\uc5d0 \uc544\uaef4 \ub450\ub824\ub294 \uac83\uc774\ub77c\ub294 \ud574\uc11d\uc774 \ub098\uc628\ub2e4.<\/p>","protected":false},"author":3,"featured_media":5734,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"bitpress_en_title":"","bitpress_en_desc":"","footnotes":""},"categories":[801],"tags":[1342,1109,654,1218,1344,1221,1341,816,1343],"class_list":["post-5733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-1342","tag-1109","tag-654","tag-1218","tag-1344","tag-1221","tag-1341","tag-816","tag-1343"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - 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