South Korea 💰 KRW Last updated2026-05-28

Jutaek damboll daechul Calculator South Korea

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Quick answer (South Korea)

A ₩500,000,000 mortgage at 4.85% over a 30-year fixed term works out to a monthly payment of about ₩2,638,459, with total interest of ₩449,845,290 over the full term.

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Mortgage Calculator

USD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$3,471,792

PITI

Principal + Interest

$2,638,459

47% goes to interest

Total Interest

$449,845,290

over 30 years

Monthly Breakdown

Principal & Interest$2,638,459

Property Tax (1.1%/yr)$572,917

Homeowner's Insurance (0.5%/yr)$260,417

Total Monthly$3,471,792

Principal vs Interest Split

53% principal

47% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Jutaek damboll daechuls in South Korea

Typical loan

₩500,000,000

in South Korea

Typical rate

4.85% p.a.

prime borrower, 2026

Typical term

30 years

most common

Market overview

South Korean mortgages are dominated by KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup, with Korea Housing Finance Corporation (KHFC) acting as a state-backed guarantor and securitizer. Most mortgages use 1-5 year fixed teaser rates blending to CD-rate or COFIX-linked variable rates thereafter. The Bank of Korea cut its base rate from 3.5% to 2.75% during 2024-2025, supporting affordability but with strict DSR (Debt Service Ratio) caps capping leverage.

Why 4.85% is the typical rate

4.85% reflects a typical 5-year fixed teaser mortgage rate for a salaried borrower at 70% LTV in early 2026, after BOK's easing. KHFC-guaranteed Bogeumjari Loan offers cheaper fixed rates (3.5-4.0%) for eligible borrowers under specific home-price thresholds.

Tax & regulatory notes

Mortgage interest is partially deductible (up to KRW 18 million/year for owner-occupied homes with long-term fixed mortgages, scaled by maturity). Property acquisition tax is 1-3% based on price (4% for second-home/multi-home buyers, higher for speculative zones). LTV caps are aggressive: 70% in regulated areas, 60% in speculation-warning zones, 40% in speculation zones (most of Seoul). DSR is capped at 40% of annual income across all loans combined.

🧮 Worked example

A ₩500,000,000 mortgage at 4.85% over a 30-year fixed term

Loan amount

₩500,000,000

Annual interest rate

4.85%

Term

30 years (360 months)

Monthly payment

₩2,638,459

Total interest paid

₩449,845,290

Total paid (principal + interest)

₩949,845,290

❓ FAQ (South Korea)

Common questions in South Korea.

What is the jeonse system and how does it interact with mortgages?

Jeonse is Korea's unique rental-deposit system — instead of monthly rent, tenants pay a lump-sum deposit (typically 50-70% of property value) refunded at lease end. Landlords use jeonse deposits as cheap financing for their own purchases or investments. Bank mortgages and jeonse loans are separate products, though many bank mortgages are also used to fund jeonse-debt repayments. The 2022-2023 jeonse fraud crisis tightened landlord lending criteria significantly.

KHFC Bogeumjari Loan — am I eligible?

Bogeumjari Loan is the Korea Housing Finance Corporation's subsidized fixed-rate mortgage for owner-occupiers buying primary residences. Eligibility: household income under KRW 70 million (KRW 85 million for first-time buyers), home price under KRW 600 million (KRW 900 million in Seoul), and Korean citizenship or F-5 permanent residency. Rates are typically 3.5-4.0% fixed for the full term (10-30 years) — meaningfully below commercial bank pricing.

DSR cap explained — how does it limit my borrowing?

Korea's Debt Service Ratio cap limits total annual debt payments (mortgage + credit cards + personal loans + auto loans) to 40% of pre-tax income. This is enforced across all banks via Korea Federation of Banks data sharing. For a household earning KRW 100 million/year, total annual debt servicing cannot exceed KRW 40 million. The DSR cap has effectively capped mortgage sizes in Seoul (where prices are high and incomes are well-documented) and is the binding constraint for most borrowers.

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