The Korea Herald


Dongnae raises W25b in Series A funding

By Byun Hye-jin

Published : March 23, 2022 - 15:48

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The corporate logo of Dongnae (Dongnae) The corporate logo of Dongnae (Dongnae)

Dongnae, Korea’s real estate startup platform, said Wednesday it has raised 25 billion won ($21 million) in Series A funding from US and Korean investors.

Key investors include NFX, Daol Investment, Hana-Magna, Hana Financial Group, MetaProp, Fursys, Han River Partners, Flybridge, Maple, and WeWork co-founder Miguel McKelvey.

“We plan to expand Dongnae branches in Seoul and in the Seoul metropolitan area, like the Pangyo office in Gyeonggi Province,” a Dongnae official said.

Dongnae has raised up to 40 billion won so far in funding, the firm said.

The firm will also further promote its Dongnae Flex service that offers premium apartment choices with lower housing deposits by an average discount of over 98 percent.

For instance, one can lease a three-bedroom Seoul apartment for an average of 15 million won in deposit and pay the rest in monthly rent, the official said.

In case of Korea, jeonse can be too expensive for home shoppers who can’t afford a large sum of money right away, the official added, citing Seoul apartments require an average of 700 million won for a two-year lease.

Jeonse is a unique rental contract in Korea that requires tenants to pay a lump-sum deposit and get it back when they move out.

Dongnae currently manages more than 60 high-end apartment complexes in Seoul. This year, the firm will offer a variety of rental properties in the Seoul metropolitan area as well.

Another service called Dongnae Plus helps users with furniture and appliance rentals, cleaning, as well as internet and cable installation.

Launched in 2020, Dongnae helps local home shoppers find affordable apartments and houses requiring low security deposits and allowing flexible lease terms.