Hong Life CalculatorsUnderstanding the real estate commission calculator — concept and principle
This calculator works out a real estate brokerage fee from the transaction amount and a commission rate. For Korean homes it applies the legal maximum rate for the deal size automatically, including the special transaction amount for monthly-rent leases, and adds VAT on the fee.
How it is calculated
- Fee = transaction amount × rate (subject to a fixed cap for some small Korean deals).
- Korea, home sale or exchange: under 50 million won 0.6% (max 250,000 won); 50–200 million 0.5% (max 800,000); 200–900 million 0.4%; 900 million–1.2 billion 0.5%; 1.2–1.5 billion 0.6%; 1.5 billion and above 0.7%.
- Korea, home lease: under 50 million 0.5% (max 200,000); 50–100 million 0.4% (max 300,000); 100–600 million 0.3%; 600 million–1.2 billion 0.4%; 1.2–1.5 billion 0.5%; 1.5 billion and above 0.6%.
- For a monthly-rent lease the transaction amount is deposit + rent × 100, or deposit + rent × 70 if that total is under 50 million won.
- Fee with VAT = fee × (1 + VAT rate); both parties together = twice that.
The principle
Korean law sets ceilings, not fixed prices: the actual fee is agreed with the agent within the maximum, and each side (buyer and seller, or landlord and tenant) pays its own agent. Rates are tiered by price so that small deals are not overcharged. A broker registered as a general VAT taxpayer adds 10% VAT. Elsewhere commissions are usually negotiated percentages, so you can enter your own rate.
Worked example
Default inputs: Korea, home sale, price 600,000,000 won, legal maximum rate, VAT 10%.
- 600 million won falls in the 200–900 million band, so the maximum rate is 0.4%, with no fixed fee limit (—).
- Fee = 600,000,000 × 0.4% = 2,400,000 won for one party.
- VAT = 10% × 2,400,000 = 240,000 won; fee with VAT = 2,640,000 won.
- Both parties together = 5,280,000 won; effective rate = 0.4%.
(The currency selector starts at Korean won, so the page shows these as ₩2,400,000 and so on.)
| Sale price, or deposit for a lease | Brokerage fee (one party) |
|---|---|
| 1.5e+08 | ₩750,000 |
| 3e+08 | ₩1,200,000 |
| 4.5e+08 | ₩1,800,000 |
| 6e+08 | ₩2,400,000 |
| 7.5e+08 | ₩3,000,000 |
| 9e+08 | ₩4,500,000 |
| 1.2e+09 | ₩7,200,000 |
How to read the result
The legal maximum is a ceiling; you can negotiate a lower rate before signing. Confirm whether your agent charges VAT (simplified taxpayers charge a lower rate). For officetels, land and commercial buildings, different rates apply.
Common mistakes
- Treating the legal maximum as a fixed price.
- Using the deposit alone for a monthly-rent lease instead of deposit + rent × 100 (or × 70).
- Forgetting VAT on the fee.
- Applying home rates to an officetel or commercial property.
Frequently asked questions
What is the brokerage fee for a 600 million won apartment sale?
Up to 0.4%, or 2.4 million won per party before VAT.
How is the fee calculated for a monthly-rent lease?
Use deposit + monthly rent × 100 as the transaction amount (× 70 if the total is under 50 million won).
Who pays the brokerage fee?
Each party pays its own fee to the agent.
Sources: 공인중개사법 시행규칙 제20조 및 별표 1 (주택 중개보수 상한요율) · 국토교통부, 부동산 중개보수 개편 안내 (2021)