'Green Dinosaur' Entering the Jeonse Market: Naver Financial Launches Jeonse Deposit Return Guarantee

Financial Product Where Housing and Urban Guarantee Corporation Takes Responsibility for Returning Jeonse Deposit When Not Recovered
Non-face-to-face Subscription Available for Villas and Townhouses, Guarantee Fee Discount and Launch Commemorative PayPoint Giveaway Event Held

[Asia Economy Reporter Ki Ha-young] Naver Financial announced on the 15th that it has partnered with the Housing and Urban Guarantee Corporation (HUG) to launch a Jeonse Deposit Return Guarantee product to support housing stability for low-income households.

Naver Financial signed an agreement with HUG and established a channel within the Naver Real Estate mobile service, which is used by over 12 million people monthly, allowing Jeonse tenants searching for rental listings for actual residence purposes to easily and securely protect their Jeonse deposits by subscribing conveniently via their mobile phones.

In particular, the service features a user experience (UX) that enables the entire process from application to payment to be completed through a non-face-to-face smartphone channel, and allows users to upload all required documents by simply taking photos, making it more convenient for consumers to use.

The Jeonse Deposit Return Guarantee is a representative housing stability guarantee product by HUG that ensures the return of the deposit by the guarantee institution if the tenant does not receive the deposit back from the landlord at the end of the Jeonse contract. Through this, tenants can reduce worries about non-return of deposits and do not have to take legal action themselves to recover the deposit in case of emergency.

To subscribe to HUG’s deposit return guarantee, the lease contract period must be at least one year, and the subscription must be made after moving-in registration and at least six months before the contract expiration date. Additionally, the Jeonse contract must be concluded through a certified real estate agent.

The guarantees available for subscription via mobile on Naver Real Estate cover apartments, officetels, row houses, and multi-family houses. The tenant deposit limit is up to 700 million KRW in the metropolitan area and up to 500 million KRW in other regions. The guarantee period extends from the issuance contract start date to one month after the contract expiration date.

HUG offers an 80% discount on guarantee fees for Jeonse deposits of 200 million KRW or less and a 70% discount for deposits exceeding 200 million KRW when using the return guarantee service until the end of the year. Accordingly, if subscribing to the return guarantee this year for a 200 million KRW Jeonse with a two-year contract, the deposit can be safely protected at an affordable cost of about 100,000 KRW.

Naver Financial is also holding an event to commemorate the service launch, offering an additional 30,000 Naver Pay points upon subscription and payment of the guarantee fee through Naver Real Estate.

Kim Hyung-gon, Financial Content Leader at Naver Financial, said, “Not only apartments, which previously allowed non-face-to-face subscriptions, but also villas and row houses can now be subscribed to non-face-to-face, enabling more actual tenants to protect their Jeonse deposits.” He added, “Naver Financial will continue to expand financial product launches targeting financially marginalized groups such as low-income tenants.”

This content was produced with the assistance of AI translation services.