Credit: Public domain.
Jeonse 전세, the real estate financing system unique to South Korea, could be on its last legs. As of Q1 2026, 70.5% of all Seoul home rentals were paid for through monthly rent 월세, an increase of 32.3% year-over-year. Jeonse rentals, in which renters make large, refundable lump deposits, decreased by 9% over the same period.
The jeonse system emerged as a way to raise capital when South Korea’s financial system was under-developed, as large deposits from renters allowed landlords to earn high returns. However, as Korea modernized and interest rates fell, the need for jeonse rentals began fading away.
