Can Rent Increase During a Lease in Korea? Explained

In most countries, once a lease is signed, the rent is locked in for the full term—whether it’s 1 year, 2 years, or more.
Landlords can’t raise the rent mid-contract unless a rare clause allows it, and even then, it’s usually tightly regulated.

But Korea’s lease system works differently.

How It Works in Korea

In Korea, landlords can request a rent increase during the lease period.
Of course, landlords can't raise as much as they want and whenever they want. There are some legal protections in place for tenants.

Rent increase restrictions: up to 5% once a year

If your lease is protected under the Housing Lease Protection Act:

• Annual rent increase is capped at 5%.
• The landlord may raise the rent once every 12 months.

If your lease is not protected then the 5% cap does not apply—for example:

• It’s a commercial lease, or
• You live in a non-residential building (like an office building used for housing).

Even if you agree to a rent hike above 5% at renewal, the excess is legally invalid. If a tenant unknowingly pays an increased amount beyond the legal cap, they can later request a refund.

Lease Renewal vs. New Lease

This rule doesn’t apply if the lease ends and a completely new contract is signed. Under the principle of freedom of contract, parties can agree to a higher rent if it's a new contract.

If you agree to a hike over 5% at renewal (e.g. 8%), that may be treated as a new contract—not a renewal. In that case, you still retain your contract renewal right for the next term. Make sure to state clearly in the contract that it’s a new agreement.

If your landlord is a registered lease business operator, then regardless of whether it's a renewal or a new contract, only up to a 5% increase is allowed. This is a condition for receiving capital gains tax benefits when selling the property.

What This Means for You as a Tenant

It often surprises expats when a landlord demands a mid-contract rent hike—and yes, they can do that in many cases.

That said, landlords can demand the increase, but you don’t have to blindly accept it. Most landlords negotiate, especially if you’ve been a good tenant.

If a dispute arises because the tenant refuses the increase, the landlord must provide objective justification — such as comparable market prices.

Rent Increase Flow

Example Scenario:
Original 2-year lease → After 1 year, landlord can demand a 5% increase

• Tenant agrees → New rent applies
• Tenant refuses →

• Landlord may apply for dispute resolution
• Tenant must continue paying original rent (very important)
• A mediation committee reviews market evidence and issues a ruling

Realtor Tip

In Korea, it’s not necessary to sign a 3-year or 5-year lease just because the rent is attractive—the rent won’t be locked in anyway.

In commercial leases, the rules are different again—especially if your deposit exceeds the legal protection threshold. But we’ll go into detail on that in the commercial lease series.