Understanding Jeonse Renewal Rights and the 5% Cap
Under Korea's Residential Lease Protection Act, tenants who have lived in their home for at least 1 year have the right to request one contract renewal. During this renewal, the landlord can only increase the jeonse deposit by up to 5% of the current amount — regardless of how much market rates have risen. This right can be exercised once during the tenancy and provides meaningful protection against sudden large increases.
If you are entering a new contract rather than exercising your renewal right, the 5% cap does not apply. In that case, the market rate and your negotiation leverage determine the final amount. This calculator shows both the legal maximum for renewals and a fair market range for new contracts, giving you a clear framework to negotiate with confidence.
Frequently Asked Questions
Yes, in limited circumstances — for example, if the landlord or a close family member plans to move in. However, if the refusal is found to be pretextual, the landlord may owe compensation equal to the difference between your original deposit and the new market rate.
After exercising the one statutory renewal right, your next contract is a new contract subject to market rates. The 5% cap no longer applies, so it's important to negotiate based on current comparable prices.