Real Estate Broker Fee Calculator
Enter the transaction amount and property type to compute the statutory cap on Korean broker commission under the Licensed Real Estate Agent Act.
The transaction sale price.
VAT applies if the broker is a standard taxpayer (annual turnover ≥ 80M KRW).
Broker fee (cap)
2,000,000KRW
500,000,000 KRW × 0.4%
- Transaction amount
- 500,000,000KRW
- Fee (pre-VAT)
- 2,000,000KRW
- VAT (10%)
- 0KRW
- Applied rate
- 0.4%
- Bracket
- 200M – under 900M
- Cap rate 0.4% applied
What is broker commission in Korea?
Real estate brokerage fees are paid to a licensed broker for intermediating a transaction (sale, exchange, or lease). Article 20 of the Enforcement Rule of the Licensed Real Estate Agents Act sets upper-limit rates by transaction amount bracket, and the actual fee is negotiated between client and broker within that limit. Residential property (homes, apartments) is divided into sale and lease, with sale rates ranging 0.4–0.7% and lease rates 0.3–0.6% depending on bracket. Non-residential property (shops, offices, land) uses a uniform 0.9% upper limit. For lease transactions, the transaction amount is converted as 'deposit + monthly rent × 100'. If the converted amount is under KRW 50M, the formula switches to 'deposit + monthly rent × 70'. Officetels are classified as residential or non-residential based on size and use, with different rates accordingly. This calculator shows the statutory upper limit. The actual negotiated fee is often lower. VAT (10%) is charged separately by general taxpayer brokers and may be billed to the buyer/lessee.
When is this calculator useful?
Estimating costs before a sale
Check the maximum brokerage fee before buying or selling a home or apartment. Both buyer and seller pay separately, so calculate both sides.
Budgeting for a jeonse/wolse contract
The converted transaction amount changes with the deposit/monthly rent mix, affecting the fee. Compare scenarios with this calculator.
Reference for negotiating the fee
Knowing the statutory ceiling helps negotiation. Settle on a reasonable amount below the ceiling with the broker.
Officetel, shop, and land transactions
Officetel rates differ depending on residential vs. non-residential classification; shops apply a uniform 0.9% cap. Use this calculator to confirm.
Sale / Exchange rates (residential)
| Transaction amount | Cap rate | Cap amount |
|---|---|---|
| Under 50M | 0.6% | 250,000 KRW |
| 50M – under 200M | 0.5% | 800,000 KRW |
| 200M – under 900M | 0.4% | — |
| 900M – under 1.2B | 0.5% | — |
| 1.2B – under 1.5B | 0.6% | — |
| 1.5B and above | 0.7% | — |
Lease rates (residential)
| Transaction amount | Cap rate | Cap amount |
|---|---|---|
| Under 50M | 0.5% | 200,000 KRW |
| 50M – under 100M | 0.4% | 300,000 KRW |
| 100M – under 600M | 0.3% | — |
| 600M – under 1.2B | 0.4% | — |
| 1.2B – under 1.5B | 0.5% | — |
| 1.5B and above | 0.6% | — |
Non-residential uses a single negotiable rate of 0.9%.
How to read the result
The result is composed of: • Transaction amount: sale price (for sales) or converted amount (for leases). • Applied rate: the upper-limit rate for the bracket. • Cap: the maximum fee that applies in some brackets. • Fee (excl. VAT): transaction amount × rate, not exceeding the cap. • VAT (10%): may be charged separately by general-taxpayer brokers. This is the statutory ceiling; the actual negotiated fee can be lower. Buyer and seller each pay separately.
Things to keep in mind
- This calculation is the statutory ceiling; the actual fee is negotiated with the broker below this limit.
- Lease transaction amount uses 'deposit + monthly rent × 100', or 'deposit + monthly rent × 70' if the converted amount is below KRW 50M.
- An officetel with usable area of 85 m² or less and residential facilities uses the residential rate; otherwise the non-residential 0.9% cap applies.
- Non-residential property (shops, offices, land) applies a uniform 0.9% cap regardless of transaction amount.
- VAT of 10% may be charged separately by general-taxpayer brokers. Simple-taxpayer brokers cannot bill VAT.
- Some rates may differ by local ordinance. Verify with the local government or broker before the transaction.
Frequently asked questions
- Is this the amount I must pay?
- No — it is the statutory cap. The actual commission is negotiated within that cap. Always agree on the fee in writing before signing the brokerage contract.
- How is the lease transaction amount converted?
- Deposit + monthly rent × 100. If that figure is under 50 million KRW, recompute as deposit + rent × 70. The calculator handles this automatically.
- Is an officetel residential or non-residential?
- If used as a residence (with resident registration), it follows residential rates. If used as office/retail space, it follows the non-residential single rate. Actual usage is the test.
- Who pays the VAT?
- If the broker is a standard taxpayer, VAT is billed separately to the client. Simplified taxpayers (turnover under 80M KRW) usually do not bill VAT separately. Confirm the broker's tax status before agreeing on the fee.
- Can I negotiate the fee lower?
- Yes, you can freely negotiate below the statutory ceiling. However, it is normal to maintain a level proportional to the broker's effort; pushing too hard can affect the transaction itself.
- If the broker represents both buyer and seller, is the fee paid twice?
- Yes. Each party pays the broker separately. Even with one broker, the buyer and seller fees are charged independently.
- Is there a fee when renewing or extending a lease?
- Generally yes. Automatic renewals of the exact same conditions can be negotiated; a new contract or changed conditions trigger a formal fee.
- Can I deduct the brokerage fee receipt from taxes?
- Salaried workers can't deduct it directly, but the fee can be recognized as a necessary expense when computing capital gains tax on a property sale, reducing the taxable gain. Keep the receipt.
Official Sources
Always verify with the official sources below