At a goshiwon near Hongik University Station in Seoul visited on the 13th, the exterior differed little from ordinary commercial housing. Inside, however, a roughly 20-square-meter living space contained a bed and TV, with a partitioned small living area housing a refrigerator and washing machine. In the shared kitchen, instant rice and meal kits were available, and one foreigner was cooking ramen. A comparison of 10 goshiwon 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 maintenance charges.
Goshiwons, once in decline, are making a comeback. Previously housing for Korea's vulnerable residents, goshiwons are now gaining attention as short-term rental products easily accessible to foreigners from the United States, China, Japan and other countries. With low deposits, flexible contract formats and durations, proximity to subway stations and established living infrastructure, goshiwons have emerged as a housing model filling the gap between lodging businesses and long-term rentals.
Industry watchers cite two main reasons goshiwons meet foreigners' short-term housing demand: lower cost burdens than hotels and other lodging facilities, and easier contracts than ordinary studio apartment rentals. Unlike simple lodging facilities, goshiwons center on shared kitchens and living communities that foster relationships, leading to analysis that they are evolving into a Korean-style co-living model.
Choi Eun-mi, CEO of StayMore, who previously purchased buildings to operate general rental businesses, has shifted direction to goshiwon operations in recent years. Turnover rates and profitability have risen as short-term housing demand, including from foreigners living in Korea, grows rapidly. Recently, she has expanded her scope to include goshiwon operations and interior design services. "With living infrastructure already in place and easy contracting through short-term rental platforms, foreigners actually view these as safe and comfortable spaces to live," Choi said. "Even though they're short-term rentals, vacancies rarely last more than two to three days, so more people are entering the goshiwon business."
Anyone meeting the requirements for multi-person living facilities can register and operate a goshiwon, enabling quick responses to short-term stay demand. Franchise goshiwon operator Pixel House opened 10 locations last year alone, including in Seoul's Seorae Maeul in Bangbae-dong. Goshiwon business registrations in Seoul reached 257 in 2019 but fell to 61 in 2021 after the pandemic. As short-term rental demand rose thereafter, registrations recorded 125 in 2024.
This shift is also tied to recent growth in the short-term rental market. According to Mobile Index, 33M2, a leading short-term rental platform, recorded 190,000 monthly active users (MAU) last month, up about 60% from 120,000 a year earlier. Related platforms such as NCoStay, which operates short-term rental services for foreigners, are also expanding rapidly. Real estate platform Zigbang is also pursuing a short-term rental service launch in the second half of this year.
The industry views Zigbang's entry itself as a signal that the short-term rental market is growing into a major housing segment. Homes Company, which operates shared housing services, runs seven co-living studios in Seoul alone. At its Seonjeongneung branch, foreigners account for 30% of residents, with an average rental period of about 10 months.
Experts see the revival of goshiwons as tied to structural changes in Seoul's housing market. As the number of foreigners and office workers valuing housing flexibility grows, the jeonse and monthly rent markets alone can no longer meet demand. "Urban housing demand filling the gap between lodging businesses and long-term rentals is growing rapidly," an industry official said. "Multilingual operating systems and connections to long-term housing will become even more important going forward."
