Background
Jeonse is a uniquely Korean lease. Instead of paying monthly rent, the tenant hands the landlord a deposit worth a large share of the home's value. If the landlord can't repay it, the tenant can lose most of their savings. When prices fell in 2013 and "underwater jeonse" spread, the Korea Housing & Urban Guarantee Corporation (HUG) launched the deposit return guarantee. In 2022–23 a wave of fraud by "villa kings" holding hundreds of low-rise units drove sign-ups sharply higher. The government tightened eligibility to 126% of the official assessed price, and in 2023 it passed a special law to support victims.
Eligibility and cost
Tenants must apply before half the lease term has passed. They also need move-in registration with occupancy and a fixed-date stamp, which give priority rights under the Housing Lease Protection Act. The deposit plus senior debts must not exceed the home's value, usually 126% of the assessed price, so heavily mortgaged homes may be rejected. Caps are ₩700 million in the Seoul area and ₩500 million elsewhere. The fee is deposit × rate × term, with discounts for young people, newlyweds, and low-income households. HF and the private insurer SGI offer similar products.
Claiming the deposit
Notify the landlord at least one month before the lease ends that you won't renew, ideally by certified letter. If the deposit still isn't returned a month after expiry, file a claim with the guarantor. If you must move out first, obtain a court lease-registration order to keep your priority rights. After review the guarantor pays you, then pursues the landlord through a payment order or auction. The best prevention is checking the property register, senior loans, and the landlord's tax arrears before signing.
FAQ
- When must I sign up?
- For HUG, before half of the lease term has elapsed.
- Why might I be rejected?
- Senior debt plus deposit exceeds the price limit, missing priority rights, or an illegally modified building.
Sources reviewed: 2026-10-26
References
- 주택도시기금법 및 주택도시보증공사(HUG) 전세보증금반환보증 약관.
- 국토교통부. (2023). 「전세사기 예방 및 피해 지원방안」.
- 주택임대차보호법 제3조, 제3조의2(대항력·우선변제권).