Real Estate Brokerage Fee Calculator

A real estate brokerage fee (officially called 'junggae-bosu' or brokerage commission in Korean law) is the payment made to a licensed real estate agent (gong-in junggaesa) for their intermediary services in real estate transactions such as sales, jeonse (lump-sum deposit leases), and monthly rentals. Commonly referred to as 'bokbi' in everyday Korean, brokerage fees are legally regulated under Article 32 of the Licensed Real Estate Agent Act (공인중개사법) and Article 20 of its Enforcement Rules, which set maximum commission rates based on transaction type and amount. The brokerage fee is structured as a bilateral payment system — both the seller (or landlord) and the buyer (or tenant) each pay the agent separately. The fee for each party is determined through negotiation within the legally prescribed maximum rate (sanghanyoyul). This means the legal rate is a ceiling, not a fixed charge, and parties can negotiate lower fees within that limit. A significant reform took effect on October 19, 2021, when the Enforcement Rules were amended to substantially reduce brokerage commission rates, particularly for high-value housing transactions. The maximum rate for housing sales over 900 million KRW dropped from 0.9% to between 0.5% and 0.7%, and lease commission rates were similarly reduced from 0.8% to between 0.4% and 0.6%. This reform was implemented in response to rapidly rising real estate prices that had caused disproportionate increases in transaction costs for ordinary citizens. Currently, all metropolitan cities and provinces across South Korea have adopted these revised national maximum rates in their local ordinances, making the rates effectively uniform nationwide. Brokerage fees are a mandatory cost consideration in any real estate transaction in Korea. For property purchases, they represent a significant portion of initial costs alongside acquisition tax and registration fees. For jeonse and monthly rental contracts, they add to the practical costs of moving. Understanding the expected brokerage fee before entering a transaction enables more accurate financial planning and budgeting. This calculator helps you quickly estimate the maximum brokerage fee for any type of real estate transaction, including VAT considerations and special rules for monthly rent conversion calculations.

This calculator lets you estimate brokerage fees in three simple steps, providing instant results with detailed breakdowns. [Step 1: Select Property Type] Choose the type of property from the top tab bar. 'Housing' covers apartments, villas, detached houses, multi-family housing, and their associated land, including housing presale rights (bunyang-gwon). 'Officetel' refers to residential-use officetels with a dedicated area of 85 square meters or less that are equipped with essential facilities including a kitchen, flush toilet, and bathing facilities. 'Non-Housing (Commercial)' covers commercial properties such as shops, offices, land, factories, warehouses, and any property not classified as residential. [Step 2: Select Transaction Type] Choose the transaction type from the second tab bar. For Housing and Officetel, you can select from 'Sale/Exchange,' 'Jeonse (Lump-sum Deposit),' or 'Monthly Rent.' For Non-Housing properties, only 'Sale/Exchange' and 'Lease' options are available, as the rate structure for commercial properties doesn't distinguish between jeonse and monthly rent. [Step 3: Enter the Amount] For Sale/Exchange or Jeonse transactions, enter the transaction amount (sale price or jeonse deposit). For Monthly Rent transactions, enter both the security deposit and the monthly rent amount separately. The input fields automatically format numbers with thousand separators (commas) for easy reading of large amounts. Once you've completed the inputs, results appear immediately below. The result card displays the brokerage fee, the applied rate percentage, VAT (10%), and the total amount including VAT. For monthly rent transactions, the converted amount (hwansan-aek) used to determine the rate tier is also shown. If a fee cap applies to your transaction, the cap amount is displayed as well. The calculation source and effective date are shown below the results for full transparency, so you can verify the legal basis for the rates applied.

Brokerage fees are calculated using the formula: Transaction Amount × Maximum Rate. Where a fee cap exists, the calculated fee cannot exceed the cap amount. [Housing Sale/Exchange Rate Table] • Under 50 million KRW: 0.6% (cap: 250,000 KRW) • 50 million – under 200 million KRW: 0.5% (cap: 800,000 KRW) • 200 million – under 900 million KRW: 0.4% • 900 million – under 1.2 billion KRW: 0.5% • 1.2 billion – under 1.5 billion KRW: 0.6% • 1.5 billion KRW and above: 0.7% [Housing Lease (Jeonse/Monthly Rent) Rate Table] • Under 50 million KRW: 0.5% (cap: 200,000 KRW) • 50 million – under 100 million KRW: 0.4% (cap: 300,000 KRW) • 100 million – under 600 million KRW: 0.3% • 600 million – under 1.2 billion KRW: 0.4% • 1.2 billion – under 1.5 billion KRW: 0.5% • 1.5 billion KRW and above: 0.6% [Officetel (Residential, under 85㎡)] • Sale/Exchange: 0.5% • Lease: 0.4% [Non-Housing (Commercial, Land, etc.)] • Sale/Exchange/Lease: Up to 0.9% (negotiable) [Monthly Rent Conversion Formula] For monthly rent transactions, a 'converted amount' (hwansan-aek) is calculated by combining the deposit and monthly rent into a single figure to determine the applicable rate tier. • Converted Amount = Deposit + (Monthly Rent × 100) • However, if this amount is less than 50 million KRW: Converted Amount = Deposit + (Monthly Rent × 70) Example: Deposit 30 million KRW / Monthly Rent 500,000 KRW: • Converted Amount = 30,000,000 + (500,000 × 100) = 80,000,000 KRW • Applied Rate: 0.4% (50M–100M tier) • Fee = 80,000,000 × 0.004 = 320,000 KRW → cap of 300,000 KRW applies → Final: 300,000 KRW [Value Added Tax (VAT)] A 10% VAT may be charged separately on top of the brokerage fee. However, individual agents registered as simplified taxpayers (gan-i gwaseja) generally do not charge VAT separately. It is advisable to confirm VAT inclusion with the agent before signing the contract.

Here are practical tips and important considerations for managing brokerage fees effectively in Korean real estate transactions. First, brokerage fees are negotiable. The legally prescribed rates are maximum limits, not fixed charges. You are not obligated to pay the full maximum amount. The Licensed Real Estate Agent Act explicitly states that fees are 'determined through mutual agreement between the client and the licensed agent within the prescribed limits.' For high-value properties or transactions that close quickly, you may have room to negotiate a lower rate. Second, always request a receipt for brokerage fees paid. Ask for a cash receipt (hyeongeum-yeongsujeung) or tax invoice (segyeom-gyesanseo). This is important because brokerage fees paid during a property purchase can be included as acquisition costs when calculating capital gains tax (yangdo-sodeukse) for a future sale. This effectively reduces your taxable capital gains and results in tax savings. Third, verify whether VAT will be charged. Corporate brokerage firms and individual agents classified as general taxpayers (with annual revenue above 80 million KRW) will charge an additional 10% VAT on top of the brokerage fee. Individual agents classified as simplified taxpayers typically do not charge VAT separately. Always confirm the VAT status before signing the contract to avoid unexpected costs. Fourth, be cautious about additional fee requests beyond the brokerage commission. Under the Licensed Real Estate Agent Act, agents may only charge the brokerage fee and actual expenses (silbi) incurred at the client's specific request (such as document issuance fees or certified copy costs). Demanding any other payments or gifts is illegal. Fifth, pay attention to how the transaction amount is calculated for presale rights (bunyang-gwon) transfers. The transaction amount for brokerage fee calculation includes only the 'payments made to date (down payment + interim payments) plus the premium (ushdon).' The remaining balance payable to the developer is excluded. Overlooking this distinction can lead to overcharging. Sixth, brokerage fees may also apply when renewing a lease contract. If you renew through the same agent, a fee is payable. However, if the landlord and tenant negotiate a renewal directly without an agent, no brokerage fee is incurred. Seventh, for officetel transactions, the rate depends on whether the unit is classified as 'residential' or 'commercial.' Only officetels with a dedicated area of 85 square meters or less that have a private kitchen, flush toilet, and bathing facilities qualify for the residential rate (0.5% for sale, 0.4% for lease). All other officetels are subject to the non-housing rate of up to 0.9%.