Taepyeongyang Appraisal Corporation Launches 'Kkangtong Jeonse Easy Search' Mobile Service

Appearance of the Kkangtong Jeonse Simple Search Service search page (Photo by Taepyeongyang Appraisal Corporation)

[Asia Economy Reporter Ryu Tae-min] An appraisal corporation has developed a service that allows users to check whether a multi-family housing unit is a "Kkangtong Jeonse" (underwater Jeonse) using their mobile phones, drawing significant attention.

On the 8th, Taepyeongyang Appraisal Corporation announced the launch of the "Kkangtong Jeonse Easy Search Service," which enables easy mobile phone searches to determine whether apartments, row houses, multi-family houses, and residential officetels nationwide are subject to Kkangtong Jeonse.

"Kkangtong Jeonse" refers to a situation where the Jeonse deposit is excessively high compared to the housing price. If the landlord cannot sell the property or repay the loan, leading to auction proceedings, tenants may face difficulties recovering their Jeonse deposits.

According to the Housing and Urban Guarantee Corporation, there were 2,266 Kkangtong Jeonse-related incidents in 2020, with damages amounting to 441.5 billion KRW. Last year, from January to October, 1,998 cases were reported, resulting in Jeonse deposit damages of 397.2 billion KRW.

Kkangtong Jeonse-related incidents frequently occur in isolated apartments and row/multi-family houses where it is difficult to verify market prices. The victims are mainly young adults with little real estate transaction experience and newlyweds.

The "Kkangtong Jeonse Easy Search" service processes information such as ▲estimated market price of multi-family housing ▲court auction winning bid rate ▲maximum claim amount of mortgage rights on the registry ▲small deposit information under the Housing Lease Protection Act, allowing users to immediately determine the recoverability of the Jeonse deposit they input.

The estimated market price of multi-family housing is automatically calculated using approximately 5.3 million actual transaction and rental data records held by Taepyeongyang Appraisal Corporation. It provides market prices not only for apartments but also for row/multi-family houses and residential officetels across all regions nationwide.

The maximum claim amount of mortgage rights on the registry is automatically aggregated, enabling users to easily check loan amounts without directly viewing the registry. Small deposit amounts under the Housing Lease Protection Act, which vary by region, can also be checked immediately.

The "Kkangtong Jeonse Easy Search" service is available to everyone and can be accessed via both web and mobile platforms. Oh Seong-beom, a certified appraiser at Taepyeongyang Appraisal Corporation overseeing the service development, said, "We planned this service to contribute to the public good by utilizing appraisal expertise," adding, "It will help protect the valuable assets of the public, including young adults and newlyweds."

Although the government and local authorities have established various systems such as the Jeonse Fraud Prevention Center (Housing and Urban Guarantee Corporation), Youth Housing Counseling Center (Seoul Metropolitan Government), and Jeonse Deposit Insurance Premium Support Project (Daejeon Metropolitan City) to prevent accidents caused by Kkangtong Jeonse, this service stands out for its advantage of allowing immediate online verification of Kkangtong Jeonse status, highlighting its potential for widespread use.

Taepyeongyang Appraisal Corporation is a large appraisal firm with over 200 certified appraisers across 15 headquarters and branches nationwide. After three years of research and development, it filed a patent for its real estate automatic appraisal model (P-AVM) and has been operating the real estate price estimation service "Landvisor" since July last year.

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