SORA RENTAL NOTE · 15
Is a room holding payment automatically lost if I cancel?
Understand Korean room reservation payments: when a lease may already exist, cancellation-payment agreements and what to confirm before transferring money.
Content checked · 3 October 2026
The key points
- The label ‘holding payment’ does not make it automatically refundable or forfeitable.
- Check whether a contract exists and what cancellation terms were agreed.
- Before paying, get the other party’s clear reply about deadlines and refunds.
01 — 04
Start with the comic
I paid KRW 300,000 to hold a room. Is it lost if I cancel?
The name alone cannot tell us. Let’s check the agreement.
I saved the messages and transfer record. I’ll check the refund terms.
Use the agreed conditions and your reason for cancellation to assess a refund.
1. No signature does not always mean no contract
- Messages exchanged
- Agreed terms
- Signature
Under Korean law, a lease can exist before a paper contract is signed. Agreement on essential terms and the parties’ intentions matter. Do not assume you can always cancel without consequence because the signing appointment is still ahead.
Alternatively, the money may only hold the room while negotiations continue. Review the whole conversation, unresolved terms and planned signing date. Labels such as ‘reservation payment’ or ‘part of the contract deposit’ are relevant, but do not decide everything alone.
2. Was a clear cancellation-payment agreement made?
- Money paid
- Cancellation terms
- Agreed terms
In case 2022Da247187, Korea’s Supreme Court required clear proof of an agreement treating the preliminary payment as cancellation money: the payer gives it up, or the recipient returns double, to withdraw before formal contracting. The payer’s decision not to proceed does not automatically justify forfeiture.
This is not a universal refund guarantee. A payment under an already formed contract, cancellation terms and whether performance has begun can change the analysis. Clear agreement can be established from messages and circumstances, not only a signed document.
3. Agree on refund conditions before transferring
- 01Identity
- 02Refund conditions
- 03Transfer processing
Confirm the unit, amount, recipient’s identity and authority, holding deadline and planned signing date. Specify what happens if remaining terms cannot be agreed or necessary document checks prevent proceeding.
Writing ‘refundable’ in your own transfer note does not by itself prove the recipient agreed. Obtain a clear reply and save full conversations and bank records. If cancelling, state the date, reason and agreed condition; avoid assuming either automatic refund or automatic loss.
What to check
- Confirm the address, unit, amount and recipient’s authority.
- Separate settled terms from unresolved negotiations.
- Get clear agreement on deadlines, refunds, forfeiture and any double repayment.
- Save complete messages, translation confirmations and transfer records.
Common questions
Can there be a contract before I sign?
Yes. Agreement on essential terms can create one. Review messages, calls and negotiation history rather than the signature alone.
Must the landlord return double if they cancel?
Not always. The payment’s purpose, cancellation agreement, contract formation and performance matter. The reservation label alone does not establish double repayment.
Official sources
These laws and public-agency materials concern renting in Korea. Source documents are mainly in Korean.