Increase in Tenant Repayment Deposit for Housing Auctions

[Asia Economy Reporter Seongpil Cho] The Ministry of Justice announced on the 4th that it has approved an amendment to the Enforcement Decree of the Housing Lease Protection Act at the Cabinet meeting held on the same day, reflecting the recent reality of rising jeonse prices in the housing market.

Accordingly, when a tenant's house with a deposit of 110 million KRW or less in the Seoul area goes to auction, the tenant used to receive priority repayment up to 37 million KRW. However, going forward, the target will be expanded to tenants with deposits of 150 million KRW or less, and the priority repayment deposit will increase by 13 million KRW to 50 million KRW. In other regions as well, tenants with deposits of 50 million KRW or less were previously protected up to 17 million KRW, but from now on, they will be protected up to 20 million KRW.

For some cities where deposits have recently risen significantly, the regional classification has also been upgraded. In the case of Gimpo-si, Gyeonggi Province, the classification was adjusted from the current Category 3 to 'Category 2, including Overcrowding Control Zones,' and for Icheon-si and Pyeongtaek-si in Gyeonggi Province, it was adjusted from the current Category 4 to 'Category 3, including Metropolitan Cities.'

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