Three years ago, Nandin Khusel could rent a decent studio in Seoul with a deposit of 3 million won ($2,200) and monthly rent of around 400,000 won. Now, the 22-year-old Mongolian makeup artist says, the same budget leaves her with few options.
“When I first came to Seoul three years ago, I could find a decent small studio for myself in Suyu-dong with a deposit of 3 million won and monthly rent of around 400,000 won. Now, places within that budget are often basement units or in poor condition,” said Khusel, who is seeking work in Seoul after studying at a college in North Chungcheong Province.
“I still receive support from my parents as I just graduated from college, so I can manage, but it must be difficult for students and others looking for work.”
Her search reflects the pressures facing foreign tenants in Seoul, where rising rents, language barriers and limited access to rental deposit loans can narrow the housing options.
In Seoul, average monthly rent for multifamily homes rose for the 16th consecutive month in August to a record 675,000 won. The average rental deposit also hit a record 61.17 million won, according to Korea Real Estate Board data.
The city’s 2024 Seoul Survey found that 52.5 percent of foreign residents surveyed lived in monthly rentals, compared with 28 percent in the survey’s overall Seoul figure.
As monthly rentals become more expensive, foreign residents who struggle to obtain loans for larger deposits, known as "jeonse," can find themselves with few alternatives. Under Korea’s unique jeonse system, tenants pay a large refundable deposit instead of monthly rent.
Housing barriers for foreign residents in Seoul
An official at the Seoul Foreign Residents Center in Yeongdeungpo-gu said foreign tenants face disadvantages due to language barriers and limited knowledge of rental contracts.
“Many foreign residents seem to have difficulties obtaining loans, and it led them to choose monthly rentals,” the official told The Korea Herald on Monday.
“Many come to us for advice because they are unfamiliar with the legal aspects of renting and face language barriers. They often have difficulty understanding the clauses in their contracts.”
The Seoul Global Center, which provides comprehensive support for foreign residents settling in the city, said rental inquiries increased as the number of international students in Seoul grew.
“Most inquiries concern difficulties communicating with landlords or getting rental deposits back,” a center official said. "We connect tenants with experts who can help resolve these issues."
The center connects foreign residents with multilingual agents at city-designated “Global Real Estate Agencies,” a list of which is available on the city government’s website.
For some foreign residents who have lived and worked in Seoul for years, high jeonse deposits and limited access to bank loans put apartment living practically out of reach.
A 42-year-old American who studied international studies in the US and has lived in Korea for more than a decade said limited access to loans made it difficult to move from a villa — a low-rise multifamily residential building — or officetel — a building with mixed commercial and residential units — into an apartment under a jeonse contract, as well as to plan for his long-term housing needs.
Seoul’s registered foreign population grew 15.3 percent to 279,629 from 2020 to 2025, according to Justice Ministry data.
International student enrollment at higher education institutions in Seoul rose 42.7 percent to 90,524 over the same period, according to Education Ministry data.
“Rents are already quite high in the villa neighborhood where I live, which is slated for redevelopment. Fortunately, my landlord has not raised my rent in recent months, but it makes me wonder what housing options I have if I stay in Korea long term,” the American resident said.
yunapark@heraldcorp.com
