Real estate agent fee (중개수수료)
Korean agent fees are capped by law per price bracket and negotiated below the cap. A home sale between KRW 200M and 900M is capped at 0.4%; 900M–1.2B at 0.5%.
How it works
Home sale caps: under KRW 50M 0.6% (max 250,000), 50M–200M 0.5% (max 800,000), 200M–900M 0.4%, 900M–1.2B 0.5%, 1.2B–1.5B 0.6%, 1.5B and above 0.7%.
Home lease caps: under 50M 0.5% (max 200,000), 50M–100M 0.4% (max 300,000), 100M–600M 0.3%, 600M–1.2B 0.4%, 1.2B–1.5B 0.5%, 1.5B and above 0.6%. Monthly rent is converted as deposit + rent × 100.
Residential officetels up to 85㎡: 0.5% for sales, 0.4% for leases. Commercial, land and everything else: up to 0.9%, negotiated.
Buyer and seller (tenant and landlord) each pay their own agent. Agents registered for general VAT add 10% on top.
Assumptions
- Caps from the Licensed Real Estate Agents Act rules (amended Oct 2021, checked Sep 2026)
- Local ordinances assumed equal to the national caps (true for Seoul, Gyeonggi and most regions)
- Officetel rate applies to residential units of 85㎡ or less with kitchen and bathroom
- Results are caps; the actual fee can be negotiated lower
FAQ
Do foreigners pay the same agent fee?
Yes. The caps apply to everyone. Some agents catering to foreigners quote a flat 'service fee' on top — that is not a legal brokerage fee and you can decline it.
Is the fee negotiable?
Yes. The table gives maximums. Agree the rate before signing and write it into the contract.
When is it paid?
By custom on the final payment date (잔금일), by both the buyer and the seller to their own agents.
Examples at common price points
Note the cliff at KRW 900M: a KRW 899M sale is capped at 0.4% (3.596M) while a 901M sale is capped at 0.5% (4.505M). Buyers close to a bracket edge sometimes negotiate the price or the fee around it.
| Transaction | Amount | Cap rate | Fee before VAT | With 10% VAT |
|---|---|---|---|---|
| Sale, apartment | KRW 350,000,000 | 0.4% | 1,400,000 | 1,540,000 |
| Sale, apartment | KRW 700,000,000 | 0.4% | 2,800,000 | 3,080,000 |
| Sale, apartment | KRW 1,000,000,000 | 0.5% | 5,000,000 | 5,500,000 |
| Sale, apartment | KRW 1,800,000,000 | 0.7% | 12,600,000 | 13,860,000 |
| Jeonse | KRW 420,000,000 | 0.3% | 1,260,000 | 1,386,000 |
| Monthly rent, deposit 50M + 1M/month | 150,000,000 (converted) | 0.3% | 450,000 | 495,000 |
| Sale, officetel 40㎡ | KRW 250,000,000 | 0.5% | 1,250,000 | 1,375,000 |
Monthly rent conversion
For a monthly-rent lease the fee base is deposit + (monthly rent × 100). If that is under KRW 50M, the multiplier drops to 70. Example: deposit 10M, rent 500k → 10M + 50M = 60M → 0.4% capped at 300k = KRW 240,000. Example: deposit 5M, rent 300k → 5M + 30M = 35M, under 50M, so recompute 5M + 21M = 26M → 0.5% capped at 200k = KRW 130,000.
Who pays, and when
Both parties pay their own agent; if one agent represents both sides (common), each side pays the capped fee. Payment is customary on the closing date, but the legal right to the fee arises when the contract is completed — so if a deal falls through because of the agent's fault, no fee is due, and if it falls through because a party breached, the agent can still claim. Write the agreed rate and payment date in the contract's special-terms box (특약사항).
Fees that are not brokerage fees
- 'Consulting' or 'service' fees for foreigners: not regulated, not mandatory; decline or negotiate.
- Fees for showing properties: none are permitted.
- Document fees (등기부등본, 확인설명서): included in the brokerage fee.
- Fees on a jeonse renewal without a new agent: none; only a re-signing with agent involvement earns a (usually reduced) fee.
If an agent overcharges
Fees above the legal cap are refundable and can be reported to the district office, which can suspend the agent's licence. Ask for a cash receipt (현금영수증) or tax invoice — issuing one is mandatory, and it is your proof of the amount paid. Agents are also required to carry professional indemnity insurance (KRW 200M for individuals); if you lose a deposit through an agent's negligence, the claim goes against that policy.