South Korea urged to reform private rental sector

According to the national census, South Korea had approximately 22.99 million households in 2024. With a homeownership rate of 58.4 percent, an estimated 9.6 million households were renters. Assuming one household per dwelling and noting that public rental housing totaled about 1.97 million units that year, roughly 7.6 million homes were provided through the private rental market.

Even assuming only two residents per unit, this creates a consumer base of over 15 million people, making it a massive market. Yet, in South Korea, few representative companies or recognizable brands come to mind when thinking about private rental housing. By contrast, in neighboring Japan, large firms such as Tokyu, Mitsui, and Sumitomo operate branded rental properties and manage them directly.

South Korea’s private rental market remains largely amateur. Before the introduction of the jeonse-wolse reporting system, renters had to rely on licensed real estate agents to determine accurate rental or sales prices. Even now, it is often difficult to verify the market value of properties with few transactions, such as officetels or villas. Buyers often purchase without fully knowing the value of the property.

Payment practices further reflect the market’s informal nature. While consumers use cards for a 5,000 won coffee, monthly rents are mostly paid via cash transfers. Any home repairs typically require direct negotiation between landlords and tenants.

According to the national census, South Korea had approximately 22.99 million households in 2024. With a homeownership rate of 58.4 percent, an estimated 9.6 million households were renters. Assuming one household per dwelling and noting that public rental housing totaled about 1.97 million units that year, roughly 7.6 million homes were supplied by the private rental market.

Even under the conservative assumption of just two occupants per unit, that translates into a consumer base exceeding 15 million people, underscoring the sector’s considerable scale. Yet few prominent companies or recognizable brands are associated with private rental housing in South Korea. In neighboring Japan, by contrast, major conglomerates such as Tokyu, Mitsui and Sumitomo develop branded rental properties and manage them in-house.

South Korea’s private rental market remains largely fragmented and informal. Prior to the introduction of the jeonse-wolse reporting system, tenants depended heavily on licensed real estate agents for reliable information on rental and sale prices. Even today, it can be difficult to assess the market value of properties with limited transaction data, including officetels and villas. As a result, buyers often proceed with purchases without a clear understanding of underlying value.

Payment practices further illustrate the sector’s informality. While consumers routinely use credit cards to buy a 5,000 won cup of coffee, monthly rent is typically transferred in cash. Repairs are likewise handled on an ad hoc basis, requiring direct negotiation between landlord and tenant.