Before You Send Any Money

Hey cuz,

This is usually the first time someone asks you to send money.

Not the actual deposit.
Not rent.
Just “a little something” to hold the place.

It happens right after you say,
“Yeah, I like it.”

The agent smiles. Types fast.
And suddenly you’re staring at a bank account number.

Welcome to the holding deposit moment.

This is where foreigners get confused.
Not because they’re careless.
But because this step feels casual while carrying real weight.

Let’s slow it down together.

What a holding deposit actually is

In Korea, this step is called 가계약 (ga-gyeyak)--a preliminary agreement.

It usually looks like this:
You and the landlord (often the landlord's agent) agree on the basics.
Price. Lease term. Move-in date.
Sometimes just verbally at first.
Sometimes confirmed in KakaoTalk messages for the record.

Then you send a holding deposit (가계약금) to the landlord.
After that, the agent schedules the official contract signing.

Later, when the real lease is signed, this money becomes part of your contract deposit downpayment (계약금).
It’s not an extra fee. It rolls forward.

So far, so reasonable, ya.

But here’s the part most people miss:

This agreement is not the official lease.
And it’s also not nothing.

Once money moves, expectations harden.

Why renting can’t work like buying coffee

Here’s why this step feels a little unnatural.

Renting a home isn’t an instant exchange.

When you buy food, clothes, or a service, money changes hands and value is delivered immediately.
You pay. You receive. Done.

Renting doesn’t work like that.

You agree today.
You sign together later.
You move in weeks or sometimes months after, once everything is settled.

Until then, nothing is fully completed.

Both sides are exposed during that gap.

The landlord worries you won’t show up on the signing day.
You worry the unit, the terms, or the situation might change.
Either side can change their mind.
A better option might appear.
Something unexpected can happen to the property itself.

That gap in time is where things can fall apart.

Why this step exists in practice

Holding deposits were born to cover that gap--between intent and the official signing.
Not because anyone loves them, but because time creates uncertainty.

Agents invest time showing properties.
Landlords want certainty.
Renters want time to think.

The holding deposit became a way to pause the market and emotionally lock the deal.

This practice started years ago in high-demand apartment sales.
Then it spread into leases.
Now in places like Mapo, Gangnam, Yongsan, Seongsu, or near universities, it’s almost routine.

It spread because it solved a timing problem.
In practice, it’s less about enforcing commitment and more about compensating the landlord for taking the unit off the market.

Understanding this helps you stop feeling the weight alone.

How much is “normal”?

There is no law setting the amount.

You might be asked for:

• ₩100,000 to ₩500,000 on smaller leases
• Or, about 1% of the total deposit on higher-value units
  (this is usually 10% of the contract down payment, 계약금)

Both happen.
Neither is illegal.

But just because something is common doesn’t mean it’s harmless.

Rule of thumb I give cousins:
If the amount makes it emotionally hard to walk away, it’s probably too much.

This money should buy you time, not trap you.

Use the bought time wisely

The problem isn’t the idea of holding deposits.
It’s how casually they’re used and sometimes even to self-sabotage.

Once you’ve sent a holding deposit, use the time to reduce blind spots--not to reopen the entire search.

Slowing things down helps you spot issues that only show up with time and distance.

Check how the building feels at night.
Notice the noise, the neighbors, the street.
Confirm parking if it matters to you.
Let your agent do a deeper title check.

This isn’t the moment to keep browsing “just in case.”

That’s how clarity quietly turns back into anxiety.

The quiet risk many people don’t see

At this stage, the full lease contract is not signed, but money has changed hands.

If you back out, you may lose the holding deposit.
If the landlord backs out, Korean contract principles say they should return double.

That principle is real.
But in practice, it often doesn’t happen automatically.

Many landlords won’t volunteer double compensation without clear proof or pressure.
And refundability often depends on what was said or written beforehand.

There’s no universal rule here.
It’s all about what was clearly agreed.

This uncertainty is specific to the preliminary stage. Once the official contract and the deposit downpayment (계약금) are in place, the rules become much clearer.

Before you send anything, pause here

Your agent should do these checks.
Many skip them.

So you should know what to ask for.

1. Confirm legal ownership

Ask the agent to check the most recent 등기부등본 (property registry).

You want to confirm:

• The landlord is the actual owner
• The unit isn’t under a family member’s name, an ex-spouse, a business partner, or sublessor (the original tenant)

Never send money without this.

2. Clarify refund conditions

Most landlords aren’t interested in trapping anyone.
They’re just afraid of losing time spent showing other prospects if you drop it at the last minute.

You don’t need to fight for what feels fair.
You just need a clear guideline to work with.

Ask:

• Under what conditions is this refundable?
• What happens if either side cancels?

A simple KakaoTalk message does the job.
Screenshots count.
Clarity matters more than formality here.

A quiet broker truth

A competent agent doesn’t rush this step.

They explain what the money does, what doesn’t do, and what options you still have.

If you pause, they are genuinely curious about why you’re hesitating.

If it’s size, they help you rebalance the budget and see if a better fit exists.
If it’s layout, light, or feeling, they suggest sourcing a few more options.

Sometimes you can skip the preliminary agreement entirely and go straight to the official contract.
That’s actually cleaner and safer.

If you can’t avoid it, keep the amount small enough that walking away still feels possible.

How I want you to think about this step

The holding deposit is not a test of commitment.
It’s not proof you’re serious.
And it’s not something you owe the system.

It’s a tool.

Used carefully, it can secure a good place.
Used casually, it creates regret.

Sometimes, it can even be a good litmus test for yourself.

If the amount suddenly feels heavy, that weight is often information.
Your gut may be telling you the unit doesn’t quite give you that at-home feeling yet.

This step should slow things down, not speed them up.

If it doesn’t feel that way, pause.
Breathe.
Text your cousin.

There’s always another unit.

--Cousin JK