---
title: "How Will Korea Open Domestic Short-Term Rentals?"
description: "Policy paths for making domestic short-term rentals work in Korea"
published: 2025-10-21T00:00:00+00:00
author: "ONDA 편집팀"
category: "Insights"
image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/68f64ffdb2531f6cb5b40d86_onda.me_.png"
canonical: https://global.onda.me/en/blog?slug=naegugin-gongyusugbag-heoyongeun-eoddeohge-cujindoelgga
locale: en
---
# How Will Korea Open Domestic Short-Term Rentals?

⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.

---

The new administration that launched last June has been [signaling](https://www.news1.kr/economy/trend/5933508) it will let Koreans book short-term rentals — not just foreign tourists. The goal: stabilize the homeshare ecosystem with domestic demand, then scale lodging infrastructure for inbound travel.

Right now, urban short-term rentals in Korea are restricted to foreign tourists. That caps the market. For hosts, serving only foreign visitors means unstable revenue — especially off-season, when vacancy rates spike and viability drops. That uncertainty keeps many would-be hosts out.

Opening domestic bookings could change three things:

**First, steady demand**. Korean travelers — weekend trips, business travel, workations — provide year-round baseline occupancy. That stability makes it worth entering the market.

**Second, scale**. Domestic bookings will multiply transaction volume. That lets platforms invest more, improve service quality, and market harder — a virtuous cycle.

**Third, professionalization**. Korean guests have high standards for cleanliness and amenities. Meeting those expectations will push service quality up — and make listings more attractive to international guests too.

One underrated benefit: **differentiated supply across regions**. Jeju, Gangneung, and Busan already have tourism infrastructure. But smaller cities that lack hotel supply can suddenly tap short-term rentals. That ties directly into the government's goal of revitalizing regional tourism.

### **How the government might roll this out**

In October 2025, the government's Services Industry Task Force started formal discussions on legalizing short-term rentals. The roadmap isn't final yet. But based on past proposals and international precedents, here's what we expect over the next 2–3 years.

Take this as informed speculation, not policy:

![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/68f65035f4aa6742a92809ea_1.jpg)

![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/68f650488da93aa802423378_2.jpg)

### **What's the pushback?**

The hotel industry argues that licensed accommodations face "dozens of regulations and massive costs — while short-term rentals sidestep all of it." They're worried about an uneven playing field.

Tenants worry about rent hikes, noise, and trash — threats to residential stability. And while the central government wants to move fast for tourism, local governments — who'll manage enforcement — are cautious about the administrative burden.

![](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/68f6506d76978199e64117ff_3.jpg)

### **Making it work: policy levers**

For domestic short-term rentals to succeed, the government has to resolve conflicts with incumbents and minimize downsides. No policy will feel "fair" to legacy operators. That's why government and platforms need to step up.

Here are a few mechanisms:

**Co-prosperity fund**. Take a cut of platform commissions and use it to support traditional lodging operators — facility upgrades, digital transformation grants. It softens the blow.

**Regulatory parity**. Short-term rental operators should pay the same taxes, meet the same safety standards, and contribute to the tourism promotion fund. Fair competition raises acceptance.

**Residential protections**. Cap listings at 5% of units per building. Exclude residential-only zones. Designate "special protection zones" within 500m of schools or dense residential areas.

**Platform accountability**. Require platforms to block unregistered listings, share data with regulators, withhold taxes, and enforce booking-day caps. Penalties for noncompliance: fines, suspensions, platform bans.

**Transparency**. Publish registration counts, transaction volumes, tax revenue, complaints, and satisfaction scores. Hard data builds the case that this helps Korean tourism.

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Opening short-term rentals to Koreans is key to hitting 30 million annual tourists. It requires bold reform — but also balance. The government has to ease concerns from the legacy industry (co-prosperity funds, regulatory parity) while minimizing neighborhood friction.

Done right, this isn't just about adding supply. It's a chance to upgrade Korea's tourism infrastructure — at quality and scale 🙂