[Start人] If Both Buying and Jeonse Are Burdensome... PropTech 'Dongnae'

Proptech Startup 'Dongne' Founded by Former WeWork Member
Interview with Kim Insong, Co-founder and Chief Strategy Officer (CSO) of Dongne
Offering Monthly Rent with Reduced Deposits for New Apartments in the Seoul Metropolitan Area

Kim In-song, co-founder and Chief Strategy Officer (CSO) of the neighborhood.

[Asia Economy Reporter Donghyun Choi] Buying a house now feels like the price will drop, but opting for a jeonse (long-term deposit lease) is burdensome due to the need for a large sum of money and increased loan interest rates. In the case of monthly rent, many newly built apartments demand such high deposits that it is almost equivalent to a half-jeonse. Is there a way to live in a newly built apartment close to work without worrying about the deposit and then purchase a house at a low price when the timing is right?

Proptech (property + technology) startup ‘Dongne’ was founded in 2020, focusing on the common pain points experienced in the current real estate market. Dongne leases premium newly built apartments in the metropolitan area from landlords and subleases them to tenants at about 98% lower deposits (around 15 million KRW) compared to the average deposit of over 500 million KRW. They also provide management services such as move-in cleaning, wallpapering, and interior repairs to resolve various inconveniences before moving in.

Kim Insong, co-founder and Chief Operating Officer (CSO) of Dongne, said, "In the past, monthly rent was considered a temporary option for young people living in one-room apartments, but this perception is changing due to the rapid rise in housing prices." He added, "Now, many people are adopting monthly rent as a lifestyle choice, preferring to invest their lump sum in stocks or enjoy leisure activities."

Kim CSO has experience working on mortgage-backed securities (MBS) at an Australian national bank. In Korea, he worked as a fund manager handling overseas real estate investments. Later, he was involved in real estate sales at the shared office platform WeWork in 2018 and has mainly worked in real estate-related fields. Kim CSO said, "I wanted to establish a culture in Korea where homes are no longer assets that tie up most of one’s wealth but are enjoyed as a monthly subscription service." He added, "I founded Dongne together with CEO Cha Mingun (Matthew Shampine), who also served as the head of WeWork Korea, as we shared the same vision."

Dongne currently holds rental listings for about 90 apartment complexes in the Seoul metropolitan area, including Seoul and Dongtan. They focus primarily on premium newly built apartments, with major listings in Seoul’s Gangnam, Seocho, Mapo, Yongsan, and Seongdong districts. Monthly rents range from 1 million to 5 million KRW, and deposits vary from 10 million to 20 million KRW. Kim CSO said, "Our main customers are high-income professionals, foreigners who do not meet loan requirements, and self-employed individuals." He added, "Many use our service because buying is burdensome in the current market, and there is anxiety about not getting their jeonse deposit back."

Dongne is a good partner not only for tenants but also for landlords who rent out their homes and real estate agents who introduce listings. Kim CSO emphasized, "From the landlord’s perspective, it helps resolve risks of late or unpaid rent and reduces the burden of communicating with tenants." He added, "All lease contracts are conducted through agents who receive commissions, creating a win-win structure for all parties."

In June, Dongne launched a tenant-exclusive application. Through this app, tenants can report inconveniences 24/7 and quickly check lease contracts. Before moving in, tenants can preview the home’s layout using 4K quality 3D content, which helps with furniture arrangement. Kim CSO said, "Through a service called Dongne Plus, tenants can also rent home appliances and furniture and use home services like internet and cable TV." He added, "The big data collected via the app will be used to further enhance our services."

In March, Dongne secured 25 billion KRW in Series A funding. The investment attracted attention with participation from Miguel McKelvey, co-founder of WeWork. Other investors included NFX, Daol Investment, Hana Financial Investment, Hana Bank, and Eugene Savings Bank. In just two years since its founding, Dongne has raised about 40 billion KRW in total. Kim CSO said, "The funds will be used to secure listings, develop new business software, and improve internal infrastructure." He added, "Currently, Korea’s proptech services are shifting from brokerage-centered transactions to rental management, and we plan to introduce various services in line with this trend."