HOME > COMMUNITY > Q & A
|Hello. Could you tell me the difference between Jeonse and Wolse?|
|The contract forms for residential housing
1. Jeonse (Key money deposit) : Jeonse or key money deposit is a housing rental system specific to Korea. Instead of paying monthly rent to a landlord, a large lump sum payment is deposited into the landlord's bank account for the duration of the contract. At the end of the contract, the deposited amount is returned to the renter.
2. Wolse (Monthly payment + deposit) : Wolse requires renters to deposit an arranged amount of money with the landlord, with monthly rent paid on a specified date or each month. There are three types of Wolse contracts. One is to simply pay monthly. Another is to pay a deposit in advance, which is less than Jeonse, and pay a monthly rental fee. You get the total amount of the deposit money back when the lease period is over. The last one is to pay a specific sum of money in advance, and some amount of money for the lease deducted from the paid money every month, and you will get the remaining money back when the lease period comes to an end. In general, most people pay a deposit in advance, and pay a monthly rental fee. In the case where the renter fails to make a monthly payment, the landlord has the right to deduct the amount from the key money deposit. The total amount of the deposit sum is negotiable with the landlord.
The lease period
The lease period is usually two years in order to protect the lessee. However, when both contractors agree on a period of less than two years, the validity of the contract is also declared. If there is not a declaration of intention about the contract renewal or the termination of the contract with two year lease period from either lessor or lessee between six months and a month before the termination of the contract, the lease contract is considered to be renewed with the same conditions as the previous contract as of the date of the termination.