A 계약금 (booking deposit) paid to reserve a rental in Korea is typically non-refundable, even if the renter cancels within 24 hours and before signing a lease. This deposit exists specifically to protect landlords from last-minute cancellations.
What Is a 계약금 and How Is It Different From Rent?
A 계약금 (booking deposit) is a reservation fee paid to hold a rental property before the full lease contract is signed. This is a distinct payment from monthly rent or the larger security deposit paid at signing.
Real estate agents and landlords use this deposit to confirm serious intent from a renter, since properties get pulled off the market once reserved.
Can You Get a Booking Deposit Back If You Cancel Early?
Generally, no. The booking deposit is designed to protect the landlord from renters who change their mind, whether that happens minutes or days after paying. Canceling before the lease signing does not automatically guarantee a refund.
Oral agreements also carry legal weight in Korea. A verbal confirmation to rent, even without a signed document, can be treated as a binding commitment in some situations. Easy to Find, Practical Law, a Ministry of Justice-backed legal information portal, explains tenant rights and dispute procedures in plain language.
Are There Exceptions That Allow a Refund?
A documented, valid reason such as a confirmed job relocation or school enrollment change may allow a renter to recover part or all of a booking deposit. This depends on the specific landlord and the strength of the documentation provided.
A local 부동산 (real estate agency) can often mediate this conversation better than the renter alone, since agents deal with these disputes regularly. The Korea Legal Aid Corporation offers free or low-cost legal consultation for tenants in rental disputes, including deposit issues.
Read more about housing costs across Incheon and Seoul and protecting your deposit in Incheon.
Frequently Asked Questions
Q: What is a 계약금 in Korean rental agreements?
A 계약금 is a booking deposit paid to reserve a rental property before the full lease contract is signed. It differs from monthly rent and the larger security deposit paid at the actual lease signing.
This deposit confirms serious intent and takes the property off the market for other renters.
Q: Is a 계약금 refundable if I cancel before signing a lease?
Generally, no. This deposit is specifically designed to protect landlords from renters who cancel, even within 24 hours of paying. Oral agreements can also carry legal weight in Korea, meaning a verbal confirmation may count as a binding commitment.
A documented valid reason may occasionally allow a partial or full refund, depending on the landlord.
Q: Who can help mediate a booking deposit dispute in Korea?
A local 부동산 (real estate agency) can often mediate these disputes more effectively than a renter negotiating alone, since agents handle similar situations regularly. Bringing clear documentation of your reason for canceling strengthens your case.
Visiting the agency in person tends to work better than phone or message-based negotiation.
