Villa? Officetel? Jeonse?: Korean Lease Types and Housing Options Decoded
Let me guess—you’ve run into at least one of these questions while searching for a place in Korea:
- Is a villa just a low-rise apartment?
- Then does "apateu" (아파트) just refer to high-rise apartment buildings?
- Office..tel?
- Why does a "two-room" unit only have one bedroom?
- What's up with those sky-high security deposits?
- And Jeonse leases… seriously, how does that even work?
Yeah, I know—it doesn’t seem to make sense. Korea’s housing and lease systems don’t follow the rules you might expect, and without the cultural, social, and historical context to match, it’s easy to get lost.
No worries—I’ve got you. Let’s break it down.
Rental Agreement vs. Lease
First, let’s make sure we’re on the same page about the universal concept. There are two main ways to enter into an agreement for using a space: a periodic rental agreement and a lease.
Both types create the tenant’s right to live in the rental unit. This right to use and possess the landlord’s property is called tenancy (임차권).
Periodic Rental Agreement (단기 사용 계약)
A periodic rental agreement sets the length of time (rental period) between rent payments. It automatically renews unless either party decides to end it. The most common example is a month-to-month rental agreement, which is widely used in countries like the U.S.
Lease (장기 임대차 계약)
A lease specifies a fixed term—the total number of months the agreement will be in effect. Rent is typically paid monthly, but unlike a periodic rental agreement, you’re legally bound by the lease until it expires. This means you must pay rent and fulfill all responsibilities under the lease for the entire lease period.
In Korea, the standard lease term is two years—far more common than month-to-month agreements.
Types of Lease in Korea
Now, let’s get into Korea’s unique leasing system. Unlike other countries, Korea has developed distinct rental structures that shape how people secure housing. These are main types of lease agreements:
Dangi (단기/깔세) – Short-Term Rental Agreements
A short-term rental (6 months, 3 months, or even month-to-month). This type of lease requires a deposit equivalent to 1–2 months of rent.
Who uses it?
- Locals needing temporary housing before moving into a new home.
- People who need short-term accommodation for work or personal reasons.
- Students near university areas.
- Foreigners whose visa status or long-term housing plans are uncertain.
Short-term rentals are rare in Korea, as landlords prefer the stability of long-term contracts.
Wolse (월세) – Monthly Rent Lease
A fixed-term lease (usually 2 years) where tenants pay monthly rent along with a security deposit that typically ranges from 10 to 20 times the monthly rent—or even higher.
Why is the standard lease term 2 years? The Housing Lease Protection Act (주택임대차보호법) sets 2 years as the standard lease period, giving tenants a strong legal protection during the period—countervailing power, preferential repayment right, silent renewal, and more. I will cover the details in another post.
Who uses Wolse? Singles and young professionals—it’s the most common rental option for those starting out.
Sageulse(사글세) & Yeonse (연세) – Annual Lump-Sum Rent
A one-time payment covering an entire year’s rent with no security deposit involved. If it's used in residential homes it's called Sageulse. You can commonly see this in Jeju island or near university areas. If in commercial properties, it's called Yeonse.
Jeonse (전세) – Deposit Only Lease
By now, you’ve probably heard of Korea’s infamous Jeonse lease—a system that doesn’t exist anywhere else.
How does Jeonse work?
- Instead of paying monthly rent, tenants deposit 50–80% of the home’s market value as a lump sum (전세보증금).
- They live rent-free for the lease period (usually 2 years).
- At the end of the lease, the landlord returns the full deposit to the tenant.
How does the math work here?
Think of the landlord as a private bank and the tenant’s Jeonse deposit as a deposit in the savings account. The landlord can use this big sum of money as investment capital for real estate or business projects. The tenant is using the rental unit as if enjoying the savings deposit monthly interest earnings. In fact, if a landlord invested the Jeonse deposit in a regular savings account, the interest earnings would be roughly equivalent to monthly rent—making it financially viable.
Why do Koreans use Jeonse?
Historically, Jeonse became widespread because:
- Mortgages weren’t widely available, so renters preferred a stable, lump-sum housing arrangement over paying monthly rent.
- Landlords used Jeonse deposits as seed money to purchase more rental properties, accelerating real estate investments.
However, unlike banks, landlords aren’t financial institutions—they don’t have the same regulations or security measures. As real estate cycles shift, declining home prices have led to increasing Jeonse deposit disputes, where landlords struggle to return tenants’ money.
Why Are Wolse Deposits in Korea So High?
Many foreigners are shocked when they see how high the security deposits are for monthly rent (Wolse) leases in Korea—especially compared to their home countries.
For example, in the U.S., many states cap security deposits at 1 to 2 times the monthly rent. But in Korea, as mentioned earlier, Wolse deposits typically range from 10 to 20 times the monthly rent, sometimes even higher. This has also led to Ban-Jeonse (반전세), a hybrid model between Wolse and Jeonse, where the deposit is even larger but the monthly rent is reduced.
The Real Reason: Covering Eviction Costs
The core reason why Wolse deposits are so high in Korea? Eviction costs.
Unlike many Western countries, where strict tenant screening is a key part of the leasing process, in Korea, landlords often move fast. If the price is right, a landlord can sign a contract within an hour (literally)—with little to no background checking.
Since screening is minimal, problem tenants sometimes end up in properties—leading to issues like: unpaid rent and property damage.
To manage this risk, landlords factor in eviction costs when setting deposit amounts.
Breaking Down the Eviction Timeline
If a tenant stops paying rent, eviction is not immediate. Here’s what happens:
- Tenant misses payments (차임연체) → The landlord must wait 2 months of non-payment before taking legal action.
- Eviction lawsuit (명도소송) → Takes an average of 6 months in court.
- Forced eviction (강제집행) → Can take another 2 months.
Total potential loss period? Up to 10 months with zero rental income.
This explains why Korean landlords demand high deposits—they are essentially pre-collecting funds to cover potential losses during eviction proceedings.
Types of Housing in Korea
Now that we’ve covered lease types, let’s talk about housing types—because in Korea, what counts as an "apartment" might not be what you expect.
Single-Family House (단독주택 )
A standalone house with its own land. Unlike in Western countries where detached houses are common, they are rare in Korea’s urban areas due to high land costs. You’ll mostly find them in suburban neighborhoods or older districts.
Who lives here?
- Homeowners who want privacy and space.
- Some single-family houses are converted into rental units (divided into separate floors or rooms).
Multi-Family Housing (다가구주택) – "Villa"
A single building owned by one landlord but rented out to multiple tenants—think of it as a small-scale apartment building.
Key features:
- Typically 2–4 stories high, no elevator.
- One landlord owns the entire building.
- Commonly referred to as a "villa" in Korea.
Who lives here?
- Budget-conscious renters.
- Young professionals and students.
Multi-Unit Housing (다세대주택) – "Villa!"
At first glance, it looks just like a Multi-Family Housing—but there’s one major difference: each unit is separately owned, like a condo.
Key features:
- 2–4 stories, no elevator.
- Each unit can have a different owner (similar to a Western-style condominium structure).
- Often used for both Jeonse and Wolse leases.
Who lives here?
- Similar to Multi-Family Housing—renters looking for affordability.
So, why do both Multi-Family Housing (다가구) and Multi-Unit Housing (다세대) get called "Villas"?
Because from the outside, they look the same. The main difference is the ownership structure, which isn’t always obvious to tenants. It's a catch-all term for low-rise housing buildings.
Row Houses (연립주택) – "Real Villa!"
Another low-rise housing type that each unit can have a different owner. The only difference between Row Houses and Multi-Unit Housing is that Row Houses offer bigger space and a little more privacy.
In the western world, a villa means a luxury house with an unique story and personality (and usually with a pool) in a remote location. Korea started using the name Villa back in the days to market Row Houses as a bigger and better version of multi-unit housing.
Key features:
- Structurally similar to townhouses in Western countries.
- 4 floors max, with shared ownership of the building’s common areas.
- Often built in clusters in residential neighborhoods.
Who lives here?
- Families or renters looking for more space than a standard villa.
High-Rise Condo/Apartment (아파트)
The king of Korean housing—when people say “apateu” (아파트), they mean a large-scale residential complex with multiple floors, elevators, and shared amenities.
Key features:
- Typically 10+ stories high.
- Built by large construction companies (Samsung, Hyundai, etc.).
- Comes with elevators, parking, and community facilities (playgrounds, gyms, security, etc.).
- Can be owned or rented—ownership is like a condo, but it’s still called an “apartment” in Korea.
Who lives here?
- Middle-class and upper-class families—아파트 is considered the most desirable housing type for long-term stability.
- Jeonse and Wolse are both common here, but Jeonse is particularly popular among families.
Why don’t Koreans call these "condos"?
Because all high-rise housing is just called "apateu" (아파트), whether it’s rented or owned. The term "condo" (콘도미니엄) is only used for resort-style properties in Korea.
What’s Up with the One-Room, Two-Room, Three-Room Naming?
If you’re used to Western housing terminology, Korea’s "one-room, two-room, three-room" system might sound completely off. Here’s how it actually works:
One-Room (원룸) = Studio
A single open space that combines the bedroom, kitchen, and living area—basically a studio apartment.
Who lives here?
- Students, young professionals, and budget-conscious renters.
- Most officetels fall under this category.
Why not just call it a "studio"?
Because “one-room” literally describes what it is: a single room with everything in it.
Two-Room (투룸) = 1 Bedroom + Living Room
Not what you’d expect! A two-room unit actually means: one separate bedroom with one living room.
Who rents these? Couples or those who want a bit more space than a studio.
Why does "two-room" mean just one bedroom?
Because in Korea, real estate terminology counts the separate spaces, not just the bedrooms. If there are two distinct rooms (a bedroom and a living room), it’s called a two-room unit.
Three-Room (쓰리룸) = 2 Bedrooms + Living Room
Again, not what you’d think. A three-room unit means: two separate bedrooms with one living room.
Who rents these? Small families, roommates, or professionals wanting extra space.
Final Thoughts: Korea Does It Differently
Korea’s real estate system has its own logic—whether it’s high Wolse deposits, Jeonse’s lump-sum madness, or the "two-room" naming twist. But once you understand how things work, you can start navigating the market with confidence.