Korean Realtor Fees: Legal Caps and How to Negotiate

When buying, selling, or renting property in Korea, both parties — the seller and buyer, or landlord and tenant — pay separate commissions to their respective licensed real estate agents (공인중개사). These fees are set by law with maximum rate schedules, yet many consumers overpay simply because they do not know the legal limits or fail to verify the calculation before signing the commission agreement. This guide gives you the complete rate tables and negotiation context.

Who Pays and Who Receives the Fee

In Korean real estate transactions, both parties pay their own commission independently to the agent they worked with. If the same agent handled both sides of the transaction (a single agent who showed the property to both buyer and tenant), each party still pays the agent separately. There is no legal obligation for the agent to disclose how much the other party is paying.

The fee is paid to the licensed agent's brokerage office (중개사무소). It is not paid to the agent personally — only to the office. Requests for cash payments directly to an individual agent are irregular and should be declined.

Realtor Fee Kr

Commission Rates for Sale Transactions

For property purchases and sales (매매), the maximum commission rates are:

Transaction Amount	Maximum Rate	Fee Cap
Up to 50 million KRW	0.6%	250,000 KRW
50 million – 200 million KRW	0.5%	No cap
200 million – 900 million KRW	0.4%	No cap
900 million – 1.2 billion KRW	0.5%	No cap
1.2 billion – 1.5 billion KRW	0.6%	No cap
Above 1.5 billion KRW	0.7%	No cap

Example: Buying an apartment for 650 million KRW falls in the 200M–900M bracket. Maximum commission = 650M × 0.4% = 2,600,000 KRW (plus 10% VAT = 2,860,000 KRW total).

Kr Realtor Fee

Commission Rates for Rental Transactions

For rental transactions (jeonse and wolse), the rate is calculated on the transaction value (전세는 보증금, 월세는 보증금 + 월세 × 70):

Transaction Value	Maximum Rate	Fee Cap
Up to 50 million KRW	0.5%	200,000 KRW
50 million – 100 million KRW	0.4%	No cap
100 million – 600 million KRW	0.3%	No cap
600 million – 1.2 billion KRW	0.4%	No cap
1.2 billion – 1.5 billion KRW	0.5%	No cap
Above 1.5 billion KRW	0.6%	No cap

For a wolse transaction with a 30 million KRW deposit + 1.2 million KRW/month:

Transaction value = 30M + (1.2M × 70) = 30M + 84M = 114 million KRW

This falls in the 100M–600M bracket at 0.3%: 114M × 0.003 = 342,000 KRW maximum commission.

VAT on Real Estate Commission

The commission itself is subject to 10% VAT (부가가치세). The legal rate schedules above are the base fees before VAT. Always ask for a VAT-inclusive total when agreeing on a fee:

• Base fee: 2,600,000 KRW
• VAT (10%): 260,000 KRW
• Total payable: 2,860,000 KRW

A formal receipt (영수증 or 간이영수증) should be provided. Requesting an official tax invoice (세금계산서) is your right and is useful for record-keeping.

Negotiating Below the Maximum Rate

The rates above are legal maximums, not fixed prices. In practice, competitive markets — particularly where many agents are competing for business — allow for meaningful negotiation:

• High-value properties: On a 1.5 billion KRW sale with a maximum commission of 10.5 million KRW, many agents will accept 0.5% or even 0.45%, saving 1.5–3 million KRW
• Simultaneous transactions: If an agent handles both your sale and your next purchase, negotiate a combined discount
• Off-peak timing: Agents in slow markets (late winter, post-Chuseok) have more flexibility

Never feel obligated to pay the maximum rate. The law sets a ceiling, not a floor.

Illegal Fee Requests to Watch For

Several practices are prohibited:

1. Rates above the legal maximum: The agent cannot charge more than the schedule allows, even with a verbal agreement from the client
2. Double-counting monthly rent: For wolse, the formula is deposit + (monthly × 70), not deposit + (monthly × 100)
3. Charging for referral or consultation services separately: A licensed agent cannot charge a separate "referral fee" on top of the commission
4. Demanding cash payment without receipt: All commissions must be documented

If an agent demands an illegal fee, you can report the brokerage office to the local government's real estate transaction management division (부동산중개업 관리기관), which has authority to suspend or revoke the agent's license.

When Is the Fee Payable?

The commission is typically paid at the time of contract completion — either when the sale registration is completed or when the tenant moves in. It is not typically required at the time of signing the preliminary agreement (가계약), although some agents request a partial deposit. Resist pre-payment before the transaction is confirmed.