Jeonse is a real estate term that is uniquely South Korean. Apparently, the South Korean real estate market is functionally quite different from here in the states. The term Jeonse refers to the way rentals work in the country. In stark contrast to America where renters pay monthly rent, a renter in South Korea makes a lump-sum deposit on a rental space, at anywhere from 50-100% (Hmm, yeah) of the market value. At the concusion of the contract term, often 2 or 3 years, the landlord returns the entire amount to the renter. Jeonse is most often used during times of high interest rates, where landlords can make secondary investments during lease periods to turn a handsome profit. The landlord is welcome to invest the deposit as he or she wishes, so long as the same amount of money is returned to the tenant at the end of the contract's term.
As if that wasn't strange enough, during times of lower interest rates, the "wolse", or monthly rent, is frequently used. In a wolse lease, a renter will sign a similarly termed one or two-year lease and make a deposit on the apartment equal to perhaps "only" 10% of the present market value. The renter then pays monthly rent just as here in the U.S.
This system is utilized primarily because there are very few mortgages in South Korea, which can really limit consumer ability to purchase real property.
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