Public Rental Conversion Price Calculator

Public Rental Conversion Price Calculator helps estimate Korea-related brokerage, registration, lien, survey, contract, and closing-cost scenarios in English.

Public rental conversion price calculator

Uses the Korean Public Housing Special Act conversion-price model for 5-year and 10-year public rentals, construction cost, appraisal value, depreciation, assessed-price cap, and contract deadline.

Korean source inputs

Conversion price

₩450,000,000

공공주택 특별법 §50조의3, 시행령 §54조·§56조, 시행규칙 §40조 [별표 7] / 법인세법 시행령 §26조 (2026 현행)

Market discount

0%

Market comparison ₩450,000,000.

Capital gain

₩0

Market price minus conversion price.

Construction cost

₩242,493,836

Self-funding interest ₩30,024,658.

Cap applied

No

Cap price ₩217,489,726.

Contract deadline

12 months

Priority conversion contract period from the Korean source rule.

This English calculator calls the same pure Korean calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

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Public rental conversion price calculator

This page translates the Korean public rental conversion price calculator for 5-year and 10-year public rental housing.

Legal basis

The Korean model follows Public Housing Special Act Article 50-3, Enforcement Decree Article 54, Enforcement Decree Article 56, Enforcement Rule Article 40, and Table 7 for conversion price calculation.

Priority conversion contracts must be signed within 6 months for 5-year public rental and within 12 months for 10-year public rental. The calculator keeps this contract-deadline rule visible with the price result.

5-year and 10-year formulas

For 5-year public rental, conversion price is the arithmetic mean of construction cost and appraisal value, but it cannot exceed assessed price minus depreciation when the assessed-price cap is available.

For 10-year public rental, the conversion price cannot exceed appraisal value, and in practice the Korean calculator uses the appraisal value as the conversion price. That is why a 10-year rental can be less favorable than the 5-year arithmetic-mean method when construction cost is low.

Construction cost details

Construction cost = initial housing price + self-funding interest - depreciation. Self-funding interest = (initial housing price - housing fund loan - rental deposit) times the average time-deposit rate times rental years.

Depreciation uses the selected base, either building cost or total housing price, and a useful-life assumption such as 40 years. Standard construction cost, land cost interest, appraisal value, and current market price are preserved as separate inputs because they affect different legal parts of the Korean formula.