Jeonse (large lump-sum rental deposits) have risen sharply in South Korea, increasing pressure on tenants as borrowing costs and lending restrictions tighten. The average jeonse deposit nationwide reached 217.97 million Korean won at the end of March 2025, up 34.9%, or 56.35 million won, from 161.62 million won in 2019. In the capital region, comprising Seoul, Gyeonggi and Incheon, the average rose 38.8% to 259.02 million won from 186.63 million won. Deposit-related financial debt increased even faster, climbing 53.0% nationwide to 46.39 million won from 30.33 million won. The debt-to-deposit ratio rose to 21.3% from 18.8%. Jeonse and monthly rents have continued to rise this year, while loan interest rates are also increasing. KB Financial Group's Management Research Institute said nationwide jeonse prices rose 0.32% in September, compared with 0.30% in August, while the capital region gained 0.56%. Seoul and Gyeonggi increased 0.64% and 0.59%, respectively. The institute attributed the increase to reduced new-home supply, greater use of contract renewal rights and a shift from home purchases to rentals. The Consumer Price Index for jeonse and monthly rents rose 1.4% year on year last month, the largest increase since December 2022.