Is Deposit-Free Monthly Rent Possible in Korea?
Traditionally in Korea, large deposits (key money) have been required for rentals. However, with more young adults and entry-level workers seeking low-cost housing, demand for no-deposit monthly rent options has surged.
As a result, platforms, startups, and public services are now offering viable deposit-free rental solutions that reduce upfront burdens while maintaining safety for both landlords and tenants.
Basic Structure of Deposit-Free Monthly Rent
A true deposit-free rental means you pay rent monthly without a large upfront payment. However, in most cases, a small reservation fee or refundable one-month deposit may still apply to protect the landlord.
| Type | Standard Monthly Rent | Deposit-Free Rent |
|---|---|---|
| Deposit | Typically 5M–10M KRW | None or 1 month refundable fee |
| Monthly Rate | Adjusted based on deposit size | Usually higher, fixed rate |
| Contract Terms | Landlord-controlled | Involves platforms or insurance systems |
True 0 KRW deposit contracts are rare, but the significantly lower entry cost is a strong advantage.
Conditions for Deposit-Free Monthly Rent
These no-deposit contracts usually rely on tenant creditworthiness and income stability. You’re more likely to qualify under the following circumstances:
- Contracting through a certified platform or rental startup
- Passing a credit screening process
- Having proof of stable income (employee, freelancer, pension, etc.)
- Providing a minimal refundable fee or insurance-based backing
Landlords are protected via insurance systems that cover missed payments, making them more open to deposit-free options.
Leading Deposit-Free Monthly Rent Services
| Service | Features |
|---|---|
| Peterpan Good Room Finder | Filters for deposit-free listings, real listings only |
| Hollo Standing | Youth-focused platform using insurance and small deposits |
| LH Public Rentals | Zero-deposit housing for low-income and eligible groups |
Many platforms also support credit checks, rental guarantees, and automated digital contracts.
Public Housing Deposit-Free Monthly Rent Options
LH (Korea Land and Housing Corporation) provides deposit-free rental programs for vulnerable groups. Eligible applicants can move in with minimal or zero initial cost.
| Target Group | Eligibility |
|---|---|
| Basic Livelihood Recipients | Income thresholds set by residency records |
| Youth, Newlyweds | Must meet age and income criteria |
| Foreign Workers | Through public housing or local programs |
Check eligibility by region, as availability and terms vary by area.
Important Things to Check When Signing a Contract
| Item | What to Watch For |
|---|---|
| Refund Terms | Check refund clauses for reservation or insurance fees |
| Guarantee System | Understand how the platform guarantees landlord safety |
| Payment Schedule | Late fees, eviction clauses, and consequences |
| Landlord Credibility | Always verify deed (등기부등본) and use a licensed agent |
No-deposit contracts can carry hidden risks. Always review every clause carefully.
Practical Alternatives to Reduce Initial Costs
No-deposit monthly rent isn’t mainstream yet, but demand and platform support are growing steadily. If you’re a student, young worker, or short-term resident, these flexible options could open up housing opportunities.
Look into credit-backed contracts, small insurance guarantees, and LH support programs to lower your cost of moving in.
Living without a deposit in Korea is no longer just wishful thinking—it’s a real option.