The 0.4% brokerage fee is a ceiling, not a price
The statutory brokerage rates are ceilings to be 'agreed within', not a fixed price. On a ₩900M apartment purchase (the ₩900M to under ₩1.2B band) the ceiling is 0.5%, or ₩4.5M. Agree 0.3% and it is ₩2.7M. From 28 August 2026 the officetel article of the Enforcement Rule also says 'agreed within the ceiling rate' in so many words. VAT of 10% is extra.
Conditions used in the video
- Deal
- house sale, ₩900M (Seoul)
- Ceiling rate
- 0.5% (₩900M to under ₩1.2B band)
- Agreed rate
- 0.3%
- VAT
- 10% extra (general-taxpayer broker)
- Rule amendment
- 2026-08-28
Results
- Ceiling 0.5%
- ₩4,500,000
- Agreed 0.3%
- ₩2,700,000
- Difference
- ₩1,800,000
- Ceiling incl. VAT
- ₩4,950,000
- ₩200M to under ₩900M the ceiling is
- 0.4%
At a glance
Seoul ordinance Schedule 1. VAT of 10% is extra.
- Ceiling 0.5%₩4,500,000
cannot exceed this
- Agreed 0.3%₩2,700,000
if agreed
Why it works this way
Many people pay the brokerage fee as 'it's 0.4%, right?'. But 0.4% is not a statutory price. It is a ceiling.
Look at the provisions.
공인중개사법 제32조제4항 · 시행규칙 제20조제1항 · Seoul ordinance Schedule 1.
- The Actbrokerage fees are set by provincial ordinance within the range the Rule allows
- The ordinancesales ₩200M to under ₩900M: 0.4%, worded as a 'ceiling rate' to be 'agreed within'
- Meaningcharging above 0.4% is unlawful; below it is free to agree
The table is headed 'ceiling rates'. It is not a price list.
Say you buy a ₩900M apartment. ₩900M falls in the ₩900M to under ₩1.2B band, so the ceiling is 0.5%, ₩4,500,000. Agree 0.3% and it is ₩2,700,000, which is ₩1,800,000 less. If the broker is a general VAT taxpayer, 10% VAT is added, ₩4,950,000 at the ceiling.
공인중개사법 시행규칙 제20조제4항, as amended effective 2026-08-28.
- Nowofficetels: 'the fee is decided within the rate range of Schedule 2'
- From 28 Aug'decided by agreement between client and broker within the ceiling rate of Schedule 2'
- Ratessale 0.5% · lease 0.4% (unchanged)
The numbers do not change. The amendment writes into the article that it is a ceiling to be agreed within. The housing article already said so.
Agree before the contract. The property confirmation statement records the fee and rate, and once that is signed it is late to negotiate. Settle the rate while you are still viewing.
From ₩900M the band changes and the ceiling rises from 0.4% to 0.5%. ₩890M and ₩900M are one rate step apart, which is good to know as well.
In short: brokerage rates are ceilings you can agree within, a ₩900M sale is ₩1,800,000 apart between the 0.5% ceiling and an agreed 0.3%, and from 28 August the officetel article says so explicitly.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
공인중개사법 제32조제4항 (brokerage fees)
In force In force
Matters on the limits of fees and expenses for brokering housing are set by ordinance of the Special City, Metropolitan City or Province within the range set by Ministry of Land rule; fees for brokering property other than housing are set by the Ministry rule.
What this means
What the Act sets is a limit, not a price.
공인중개사법 시행규칙 제20조제1항 · Seoul housing brokerage fee ordinance Schedule 1
In force In force
Housing sale/exchange: under ₩50M 0.6% (cap ₩250,000), ₩50M to under ₩200M 0.5% (cap ₩800,000), ₩200M to under ₩900M 0.4%, ₩900M to under ₩1.2B 0.5%, ₩1.2B to under ₩1.5B 0.6%, ₩1.5B and over 0.7%. Agreed between client and broker within the ceiling rate.
What this means
🔴 Each band is a 'ceiling rate'. A ₩900M sale falls in the ₩900M to under ₩1.2B band and is agreed within 0.5%.
공인중개사법 시행규칙 제20조제4항제1호 (officetel brokerage fees)
In force Effective 2026-08-28 (amendment promulgated 2026-08-11)
Officetels (85㎡ or less, with residential facilities): charged to each party, decided by agreement between client and broker within the ceiling rate of Schedule 2.
What this means
'Decided within the rate range' becomes 'decided by agreement within the ceiling rate'. Schedule 2's 0.5% and 0.4% are unchanged.
부가가치세법 제30조 (rate)
In force In force
The VAT rate is 10 percent.
What this means
A general-taxpayer broker adds 10% to the fee. Simplified taxpayers differ. Check with a cash receipt or tax invoice.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Agent Commission Calculator
Frequently asked
The broker says 0.4% is mandatory.
The ordinance sets a ceiling rate 'agreed within'. Charging above it is unlawful; agreeing below it is up to both sides.
When should the rate be agreed?
Before the contract. The property confirmation statement records the rate and amount, and it is hard to change after signing.
Does the 28 August amendment lower officetel rates?
No. Schedule 2's sale 0.5% and lease 0.4% stay; the amendment adds the words 'decided by agreement within the ceiling rate'.
Is VAT compulsory?
A general-taxpayer broker adds 10% VAT. A simplified taxpayer cannot charge VAT separately. Check the registration type and get a tax invoice or cash receipt.
Are rates different outside Seoul?
They are set by provincial ordinance, so they can differ, but within the range of Rule Article 20(1) most use the same bands and rates. The calculator uses Seoul's Schedule 1.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.