Chun-say

Chun-say (also cheonsae, jeon-sae, or jeonse), 전세 in Korean, is a type of Korean rental agreement. Due to high real estate prices in popular areas such as Seoul, and strict mortgage lending standard, Chun-say is a popular way for tenants to rent while saving up for the purchase price or a down payment on an apartment.

Chun-way involves the tenant giving the landlord a large sum of "key money" when a lease is signed. The amount of money required depends on the economy and the location of the property. Usually the amount required is 50% of the property's value, but can be as high as 60-80%^[1] in the more popular areas of Seoul. The tenant is then allowed to stay in the property "rent-free", not requiring any additional monthly payments, until the end of the lease, which is usually 2 years.^[2] Utilities and other costs (Water, Gas, Electricity, Cable, Phone, Internet, Security Gas) are applied for and paid by the tenant.

The landlord makes a return by taking the deposit money and investing it and keeping all interest earned on the deposit. The tenant's deposit is protected by having a lien issued against the property for the amount given.

The entire deposit is then returned to the tenant at the end of the lease. In rare cases where damage has been done to the property, the damage has to be fixed to the landlord's standard before a landlord will return the deposit.

References

1. ^ Galbijim - For those living, working and travelling in Korea
2. ^ Korea Times Article - Tenants Face Hard Times From Rising Jeonse Payments

External links

• Global Overseas Adoptees' Link
• Galbijim - For those living, working and travelling in Korea