South Korea Rent Increase Regulations: 5% Cap & Limits
Complete guide to South Korea's rent increase caps under the Housing Lease Protection Act including the 5% limit, re-increase restrictions, and jeonse-to-wol...
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Rent increases in South Korean residential leases are strictly regulated under the Housing Lease Protection Act (with key amendments regarding caps and renewal rights effective 31 July 2020). Upon contract renewal, increases to both rent and deposits are capped at 5% of the existing amount, and any increase exceeding this limit is legally void.
The 5% Rent Increase Cap
Core Rules
Calculation Examples
When the 5% Cap Applies
Cap Applies
- Agreed renewals — landlord and existing tenant negotiate a contract extension
- Contract Renewal Request Right — tenant exercises their statutory right to renew (Article 6-3)
- Mid-term increase requests — landlord requests an increase during the contract period due to changed economic circumstances
Cap Does NOT Apply
- New contracts — when signing a lease with a new tenant (no cap on initial pricing)
- Full conversion — when fundamentally changing from jeonse to wolse or vice versa (but conversion rate caps still apply)
Jeonse-to-Wolse Conversion Rate
When converting between jeonse and wolse formats, the conversion rate is capped (Article 7-2) at the lower of 10% or the BOK base rate + 2%:
Monthly rent = (Jeonse deposit − Wolse deposit) × Conversion rate / 12
Mid-Term Increase Requirements
To request a rent increase during the lease period, the landlord must demonstrate:
- Changed economic circumstances — inflation, increased taxes or levies, comparable market rents
- Elapsed time — at least 1 year since the last increase or the start of the contract
- Within the 5% cap — the increase may not exceed 5%
- Objective justification — supported by comparable rental data, tax assessment changes, etc.
Tenant's Right to Request a Decrease
Conversely, tenants may also request a rent decrease when economic conditions change (e.g., falling property values, declining market rents). The same 5% framework and evidence requirements apply.
Local Government Variations
Some local governments may set the cap lower than 5% through local ordinances (Article 7, Paragraph 2):
Consequences of Exceeding the Cap
- The excess portion of any increase above 5% is automatically void
- The tenant remains liable only for the lawful amount
- Overpaid rent can be reclaimed as unjust enrichment
- The Housing Lease Dispute Mediation Committee may be engaged for resolution
Best Practices for Landlords
- Calculate increases precisely — amounts exceeding the cap are void and expose you to unjust enrichment claims
- Verify the timing — confirm at least 1 year has passed since the last increase
- Observe the notice window — ensure notice is delivered between 6 and 2 months before the lease expires
- Communicate in writing — use certified mail or documented channels for increase notices
- Comply with conversion rate caps — when switching between jeonse and wolse formats
Sources & Official References
Frequently Asked Questions
▶What are the rent increase limits and caps in South Korea?
South Korea has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
▶What are the key landlord-tenant laws in South Korea?
South Korea\'s rental market features the unique Jeonse (lump-sum deposit) and Wolse (monthly rent) systems. The Housing Lease Protection Act (HLPA) provides powerful statutory protections, including the "2+2" renewal right. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in South Korea?
The eviction process in South Korea requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the security deposit rules and return deadlines in South Korea?
South Korea has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in South Korea?
Lease agreements in South Korea must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in South Korea?
Landlords in South Korea are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in South Korea?
South Korea has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in South Korea?
Landlords in South Korea must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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