Seasonal Rental Opportunities in South Korea

Published on January 15, 2026 and written by Cyril Jarnias

South Korea is emerging as a major playground for short-term rentals. Between the tourism boom, the rise of platforms like Airbnb or Flatio, pressure on the housing market, and a regulatory framework that is tightening yet adapting, the country offers a rare blend of potential and complexity. For an investor, a local property owner, or an expatriate looking to monetize a property, the question is no longer whether opportunities exist, but how to seize them without getting burned.

A Short-Term Rental Market in Full Transformation

According to cross-referenced analyses from Airbtics, AirROI, and Statista, the South Korean vacation rental market is growing rapidly, driven by a dual trend: a sharp rise in tourist demand and a structural shift in housing toward rentals, particularly monthly stays.

Key indicators used by analysts – monthly revenue, Average Daily Rate (ADR), occupancy rate, number of properties, regulatory environment – show a business model that can be highly profitable if finely managed. The most commonly cited viability threshold for this type of activity is around 60% occupancy, with a target net margin between 10% and 20% after deducting expenses (taxes, management, maintenance, platform commissions, etc.).

A Shift Toward Rentals and Pressure on Housing

The general real estate context also favors short-term rentals. Purchase prices have skyrocketed, particularly in Seoul where housing prices reportedly surged by about 70% between 2018 and 2024, resulting in one of the highest price-to-income ratios in developed Asia. At the same time, the traditional jeonse system (large deposit, no monthly rent) is declining in favor of wolse (smaller deposit plus monthly rent), which mechanically increases the cash flow from renting.

Seoul and Busan: Two Key Markets for Short-Term Rentals

Among all cities in the country, two stand out clearly for short-term rental investors: Seoul and Busan. They concentrate the highest number of Airbnb listings and feature some of the highest annual revenues, even though their regulatory frameworks and seasonality differ.

Seoul, Capital of Short-Term Rentals

The most recent data indicates that nationally, Seoul is the top short-term rental market. AirROI ranks it first with about 16,895 tracked properties, average monthly revenue around $1,270, and an ADR close to $91 for an average occupancy rate of about 54% in this dataset. Another panel, focused on active Airbnb listings as of December 10, 2025, lists 20,374 active accommodations in the capital with significantly higher performance.

The performance of a typical Airbnb in Seoul for the period November 2024 – October 2025 can be summarized as follows:

Indicator	Average Seoul Airbnb Value
Average annual revenue	≈ 26,000,000 ₩ (~$19,000)
Average monthly revenue	≈ 2,236,361 ₩ (~$1,624)
Median occupancy rate	81%
ADR (Average Daily Rate)	≈ 97,771 ₩ (~$71)
Booked nights per year	≈ 296 nights
Annual revenue change	+1.89%

It’s immediately clear that the occupancy rate far exceeds the 60% threshold generally considered necessary for a profitable model. With nearly 300 nights booked per year, a well-located property can approach near-hotel utilization.

Simultaneously, the composition of the supply in Seoul is very revealing of the demand profile:

Characteristic	Approximate Share in Seoul
Entire homes (house/apartment)	≈ 73% of listings
“House” type among properties	≈ 45%
Apartments/condos	≈ 43%
1-bedroom listings	≈ 50%
Most frequent capacity	2 people (~29%)
Properties accommodating ≥ 6 people	~19–20%

This shows that the core of the market consists of small independent accommodations for couples or duos (tourists, digital nomads, young professionals), supplemented by a significant segment of family or group accommodations (6 people or more).

Regarding clientele, Airbtics data indicates that about 80% of Airbnb travelers in Seoul are international, with a strong presence of visitors from the United States, Singapore, China, or Australia. Half of the guests belong to the post-2000 generation, which strongly influences expectations: ultra-reliable wifi, air conditioning, effective heating (ondol), self check-in, “Instagrammable” aesthetics.

Busan, a Highly Seasonal Market Boosted by Summer

Busan, the country’s second-largest city, also positions itself as a major hub for short-term rentals. According to Airbtics data, there were 7,256 active Airbnb listings as of December 10, 2025. For the period November 2024 – October 2025:

Indicator	Average Busan Airbnb Value
Average annual revenue	≈ 20,000,000 ₩ (~$14,000)
Average monthly revenue	≈ 1,704,812 ₩ (~$1,238)
Median occupancy rate	64%
ADR (Average Daily Rate)	≈ 95,017 ₩ (~$69)
Booked nights per year	≈ 234 nights
Annual revenue change	+28.12%

While average levels are lower than in Seoul, the nearly 30% year-on-year revenue growth stands out clearly. Busan benefits from even more pronounced seasonality, dominated by the beach season: August is the most profitable month and July is another major peak. The beaches (Haeundae, Gwangalli), nightlife, and summer festivals make it a typical “vacation” market.

Quick Comparison: Seoul / Busan

Indicator	Seoul	Busan
Active Airbnb Listings	20,374	7,256
Average Annual Revenue	~26 M ₩	~20 M ₩
Median Occupancy Rate	81%	64%
ADR	~97,771 ₩	~95,017 ₩
Most Profitable Month	October	August
Secondary Strong Month	April	July
Share of Foreign Travelers	~32%	~27%
Nature of Seasonality	Strong, multi-peak (spring/fall)	Very strong, summer-focused

For an investor, Seoul offers a more regular and international base, while Busan offers a potential summer “boost”, at the cost of greater seasonal volatility.

Where to Invest in Seoul: Focus on High-Performing Districts

Within the capital itself, not all neighborhoods are equal. Airbtics data identifies several gu (districts) that stand out for their performance.

Seoul District	Average Airbnb Annual Revenue	Occupancy Rate	Average ADR
Jung-gu	≈ 38,109,035 ₩	83%	≈ 123,936 ₩
Mapo-gu	≈ 35,915,362 ₩	85%	≈ 114,296 ₩
Zone KR-166	≈ 33,341,618 ₩	84%	≈ 107,411 ₩

Jung-gu covers ultra-touristic areas like Myeongdong or near Namsan, with a high density of shops, transportation, and iconic sites. Mapo-gu includes Hongdae and Yeonnam-dong, epicenters of youth and artistic culture. Unsurprisingly, these districts combine high occupancy rates and ADRs higher than the city average.

For a foreign investor, this means that the choice of gu should not only be based on purchase price, but on a fine balance between:

– tourist attractiveness,

– accessibility (subway, train stations),

– clientele profile (leisure vs. business),

– and most importantly, the regulatory feasibility for obtaining a lodging license.

Regulation: Real Opportunities, Concrete Risks

One of the most sensitive aspects of short-term rental opportunities in South Korea is the regulation. The country has clearly chosen to channel the growth of platforms, particularly Airbnb, through a stricter and more controlled legal framework.

Mandatory Registration for Airbnb Hosts

Airbnb, in consultation with authorities, has implemented a mandatory registration system for all hosts in Korea. New listings must now provide business registration information, and existing ones must comply. Starting in October 2025, the platform plans to block bookings for unregistered listings. From January 2026, non-compliant accommodations will no longer be bookable.

Even though this measure is a voluntary initiative by Airbnb and not a legal obligation imposed on platforms, it changes the game radically: an owner hoping to operate a non-compliant studio “discreetly” will no longer be able to do so through this major channel.

Permitted or Prohibited Property Types

A point that often surprises foreign investors: not all property types can legally be used for short-term rentals. According to South Korean law (Tourism Promotion Act, Building Act, etc.):

Violations (unregistered hosting, use of a prohibited property, etc.) can expose the owner to fines ranging from 500,000 ₩ to 5 million ₩, or even more in some situations (up to 20 million ₩ or two years in prison for illegal lodging forms under general legislation).

Seoul vs. Busan: Two Contrasting Regulatory Lines

Market summaries indicate that Airbnb rules in Seoul are described as relatively “flexible” at the municipal level, even though the country is still considered heavily regulated. The city imposes registration and tax obligations but still leaves room for short-term rentals, provided the property is eligible and formalities are completed.

Busan, on the other hand, is characterized as “strict.” Registration is also mandatory there, and the number of licenses a single host can hold may be limited. Taxes must also be correctly declared, and inspections seem more rigorous.

The corollary of this tightening is twofold:

– a portion of the illegal supply will be gradually pushed out, which can benefit fully compliant operators;

– some properties may be switched back to traditional (long-term) rental if the seasonal model is no longer viable, offering an “exit strategy,” albeit less profitable but more stable.

Taxation: What an Owner Must Anticipate

The attractive gross profitability of a short-term rental in South Korea must be weighed against the taxation, which can be heavy, especially for very high incomes.

Individual Income Tax

Rental income for an individual is integrated into their overall income and subject to a progressive scale ranging from 6% up to 45% beyond 1 billion ₩ of annual taxable income. There is no specific deduction for rental income, but actual expenses (interest, management fees, maintenance) can be deducted.

For personal rental income below 24 million ₩, a simplified regime allows for a standard percentage deduction (20% to 66%) for expenses. Beyond this threshold, one must operate with actual expense deductions with possible deduction rates (15% to 48%) depending on the expense structure.

Taxation via a Company and Non-Residents

Some non-resident investors choose to hold their property through a local structure like a YooHan hoesa (limited liability company). This setup allows for taxation at the flat rate of 22% on rental income for a non-resident company, after deducting expenses. Korean corporations (JooSik hoesa) are subject to a progressive scale from 9% to 24% based on profit level.

The advantage of a corporate structure lies in tax clarity and the ability to deduct numerous expenses (salaries, depreciation, marketing costs, etc.), but it also involves compliance costs, accounting, and sometimes specific formalities.

Property Tax and Capital Gains

Owners also bear recurring taxes on ownership, generally between 0.15% and 0.50% for a residential property, with a specific rate for the land (about 0.2%) and for the building (0.25%). For high-value properties (beyond a certain threshold, e.g., 600 million ₩), an additional comprehensive real estate holding tax can apply, ranging from 0.5% to 2%, or more for speculative assets.

For a short-term rental investor, the optimal strategy therefore involves:

– estimating net profitability after taxes (and not just rental cash flow);

– balancing between personal ownership and ownership via a company;

– integrating the potential cost of capital gains tax upon exit from the outset.

Profitability: Short-Term vs. Long-Term

Despite this taxation, market data shows that short-term rentals generally generate a monthly cash flow about twice that of a traditional rental. In a market where the average gross yield for apartments is around 4.3% (and higher for some small accommodations), short-term operation can increase the apparent yield, especially if one can maintain a 70–80% occupancy rate with a competitive ADR.

Apartment Type (Seoul)	Average Purchase Price (USD)	Average Monthly Rent (USD)	Estimated Gross Yield
1 bedroom	≈ $645,700	≈ $3,535	≈ 6.57%
2 bedrooms	≈ $1,175,890	≈ $3,780	≈ 3.86%
3 bedrooms	≈ $1,734,600	≈ $6,000	≈ 4.15%
4+ bedrooms	≈ $3,507,500	≈ $7,745	≈ 2.65%

In practice, net yields are lower (1.5–2 percentage points less once expenses are included). A well-managed short-term operation can improve these figures, but at the cost of:

– more intensive management (check-in/out, maintenance, guest communication);

– greater regulatory exposure;

– and dependence on the tourism climate.

For those who want to maximize income without turning into hoteliers, outsourcing to a specialized management company often proves decisive.

Role of Management Companies: Toward (Almost) Passive Income

In Seoul as in Busan, several major short-term rental management operators structure the market. In Seoul, one can mention Stay Waiheke (over 1,600 managed listings with an average rating near 4.6/5), Esther, UH FLAT, LeCollective, or CentralviewSuite, which stands out with excellent reviews (5.0/5) on about sixty properties. In Busan, players like Busan Station Lecollective, HyoiStay.S, The First Ocean, or StayWe Paul dominate certain segments.

Internal analyses by these companies and tools like Airbnb calculators show that a professional management model can significantly increase performance:

For a foreign investor who doesn’t speak Korean, these companies also play a role as a cultural and administrative intermediary: interface with the gucheong for licenses, tax payments, compliance with condominium rules, adaptation to local expectations (cleanliness, shoe management at the entrance, noise, etc.).

Beyond Seoul and Busan: Jeju, Secondary Cities, and Niche Markets

AirROI and Airbtics rankings show that other markets offer opportunities, even if the regulatory framework is sometimes stricter there. Jeju ranks second behind Seoul, with over 6,000 properties, an ADR of about $112, and monthly revenue near $1,240. However, rules there are classified as highly restrictive, requiring even greater vigilance.

Other cities like Incheon, Gangneung, Gyeongju, Jeonju, or Yeosu regularly appear in the “top 20” short-term rental markets. Often, these destinations combine:

– strong tourist appeal (beaches, mountains, historical heritage);

– a more affordable purchase price than Seoul;

– but more pronounced seasonality and a more domestic clientele.

For investors seeking niches, certain markets are identified as favorable for Airbnb arbitrage (taking a long-term lease and then subletting short-term with the owner’s agreement), notably Andong or Chungju. This type of model, however, assumes perfect mastery of contracts and legal limitations on subletting.

Platforms and Tools: Find, Operate, Optimize

The Korean rental ecosystem has grown denser around numerous platforms, each targeting a market segment.

To Find a Property or Accommodation

– Zigbang, Dabang, Naver Real Estate: major Korean platforms (in Korean) to find apartments, villas, or officetels. They integrate maps, advanced filters, virtual tours.

– Ziptoss, EnkoStay, Flatio: services oriented toward foreigners, often without deposit or with reduced deposits, contracts compatible with foreign resident cards, English support.

– Craigslist Seoul, Facebook, TripAdvisor, Vrbo, Booking.com, Airbnb: complete the landscape, with a more or less strong role depending on length of stay.

For Long-Term Management

Beyond the management companies already mentioned, complementary services exist:

– furniture and appliance rental to furnish a property “fully equipped” at a lower initial cost;

– online payment and automation platforms (digital check-in, smart locks, recurring payments);

– outsourced cleaning and maintenance services to maintain a quality level compatible with the very high expectations of Korean and international travelers.

Culture, Traveler Expectations, and Guest Experience

Building a profitable short-term rental model in South Korea is not just about optimizing numbers. A fine understanding of local culture and social codes is a competitive advantage, especially for avoiding neighbor conflicts and bad reviews.

Some contextual cultural elements, directly relevant to short-term hosting:

A savvy host will detail in their welcome booklet elements as basic as: house rules, available amenities, emergency numbers, safety advice, and information on local attractions.

– how to sort waste,

– how to use the floor heating,

– the location of slippers and rules for shoes,

– recommendations regarding alcohol consumption, late-night food deliveries, etc.

This cultural sensitivity not only reduces the risk of conflict but also contributes to the famous jeong (benevolent attachment), which translates into enthusiastic reviews and repeat bookings.

Risks, Limits… and Why Opportunities Remain Strong

Despite regulatory tightening, administrative hurdles, tax pressure, and growing competition, South Korea continues to offer real opportunities for short-term rentals, for several structural reasons.

A Solid Base of Demand

– The country aims for 30 million foreign tourists in the coming years, after welcoming about 16 million visitors in 2024.

– The global rise of K-culture (K-pop, dramas, cinema) keeps Korea at the heart of the tourist imagination.

– Internally, nearly half of the country’s households are tenants and the number of single-person households (over 36%) is increasing, fueling demand for compact housing in urban areas.

– Major Korean cities attract tens of thousands of international students and foreign workers each year, who often seek flexible arrangements (stays of several weeks to a few months).

A Framework That Is Normalizing

The regulatory tightening, far from killing the market, also aims to professionalize it:

For investors willing to play “by the rules,” this normalization is good news: less unregulated competition, more possibilities for official communication (Wehome, certified platforms, partnerships with tourism offices), and a stable framework on which to build a long-term strategy.

A Choice to Make: Pure Seasonal or Hybrid

Given the seasonal volatility (very strong summer and fall, softer winter), some operators already opt for hybrid models:

This approach reduces the risk of prolonged lows, simplifies management (less turnover), and attracts another clientele profile: students, expatriates on assignment, project-based workers.

Conclusion: How to Approach Opportunities in South Korea

Short-term rental opportunities in South Korea are real, but they are not for those hoping for easy passive income. The country combines:

– attractive market performance in the main hubs (Seoul, Busan, Jeju, major tourist cities),

– a demanding but increasingly well-defined regulatory framework,

– heavy but predictable taxation,

– and a local culture that values quality, cleanliness, respect, and discretion.

For an investor or owner looking to get started, three main guidelines emerge:

In a country where over half the capital’s residents already live in rentals, where housing supply remains under pressure, and where international tourism is picking up again, short-term rentals still have bright days ahead. Provided that those who want to benefit from them take the time to understand South Korea in all its complexity – economic, regulatory, and cultural – and adapt to it with rigor rather than improvisation.