At a gosiwon near Hongdae Station in Seoul visited on the 13th, the exterior looked much like an ordinary commercial residential building. Inside, however, each roughly 20-square-meter unit was equipped with a bed and television, along with a small living space separated by a partition that housed a refrigerator and washing machine. In the shared kitchen, instant rice and meal kits were stocked, and a foreign resident was seen boiling ramen. A comparison of 10 gosiwon businesses registered near Hongdae last year showed deposits generally ranged from 300,000 to 500,000 won, with monthly fees of 900,000 to 1 million won including management costs.
Once-declining gosiwon, small subdivided dormitory-style housing units, are making a comeback. Long considered housing for the economically vulnerable, gosiwon are now gaining attention as short-term rental products easily accessible to foreigners from the United States, China, Japan and elsewhere. With low deposits, flexible contract terms and durations, proximity to subway stations and built-in living infrastructure, gosiwon have emerged as a housing model filling the gap between lodging and long-term rentals.
Gosiwon meet short-term residential demand from foreigners because they cost less than hotels and other lodging facilities while offering easier contracts than standard studio apartment rentals. Unlike simple lodging facilities, gosiwon foster community through shared kitchens and living spaces, leading some to view them as evolving into a Korean-style co-living model.
Choi Eun-mi, CEO of Staymore, who previously ran a standard rental business after purchasing buildings, shifted toward operating gosiwon in recent years. The pivot came as short-term residential demand, including from foreigners living in Korea, grew rapidly, boosting turnover and profitability. She has since expanded into gosiwon operation and interior services. "Because the living infrastructure is in place and contracts can easily be signed through short-term rental platforms, foreigners see these as safe and comfortable spaces to live," Choi said. "Even though they are short-term rentals, vacancies rarely last more than two or three days, so more people are entering the gosiwon business."
Gosiwon can be operated by anyone who meets the multi-unit dwelling facility requirements simply by filing a registration, allowing them to respond quickly to short-stay demand. Pixel House, a gosiwon franchise, opened 10 locations last year alone, including one in Seorae Village in Bangbae-dong, Seoul. Gosiwon business registrations in Seoul reached 257 in 2019 but fell to 61 in 2021 after the pandemic. As short-term rental demand rose, registrations climbed back to 125 in 2024.
The shift coincides with the recent growth of the short-term rental market. According to Mobile Index, 33m2, a leading short-term rental platform, recorded 190,000 monthly active users last month, up about 60 percent from 120,000 a year earlier. Related platforms, including NCO Stay, which offers short-term rental services for foreigners, are also expanding rapidly. Real estate platform Zigbang is pushing to launch a short-term rental service in the second half of this year.
The industry sees Zigbang's entry itself as a signal that the short-term rental market is growing into a major residential market. Homes Company, which operates co-living services, runs seven co-living studios in Seoul alone. At its Seolleung branch, foreigners account for 30 percent of residents, with an average rental period of about 10 months.
Experts say the revival of gosiwon is tied to shifts in Seoul's housing structure. As the number of foreigners and workers who prioritize housing flexibility grows, the jeonse and monthly rental markets alone can no longer meet demand. "Urban residential demand that fills the gap between lodging and long-term rental is growing rapidly," an industry official said. "Multilingual operating systems and connections to long-term housing will become increasingly important going forward."
