Have You Checked for Landlord Arrears? 'Top Instructor' Won Hee-ryong Explains How to Prevent Jeonse Fraud

"Check Jeonse Ratio and Senior Mortgage Rights"
"Report Move-in, Confirm Date, and Subscribe to Deposit Insurance"

As the real estate market rapidly shifts to a downturn, tenants who cannot get their jeonse deposits back from landlords (lessors) and young people or early career workers falling victim to jeonse fraud are increasing.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, who once gained fame as the "Top Lecturer of Daejang-dong," has also taken on the role of a "Jeonse Fraud Prevention" instructor. In July, he introduced methods to prevent jeonse fraud by writing on a chalkboard on his YouTube channel, "Won Hee-ryong TV," and recently, he has been providing related information through card news as well.

The measures Minister Won explains for preventing jeonse fraud are divided into before and after the jeonse contract.

Before the contract, it is necessary to ▲check surrounding sale and jeonse prices ▲use the standard housing lease contract ▲verify priority claims such as mortgage rights and jeonse rights ▲check the landlord’s tax delinquency status ▲confirm priority deposits.

① Check Surrounding Sale and Jeonse Prices

In Seoul, newly built villas (townhouses and multi-family houses) are seeing a surge in "empty-can jeonse" contracts where the jeonse deposit is similar to or even higher than the sale price.

If a tenant moves into an empty-can house, they may not be able to get their jeonse deposit back even after the contract period ends. This is because if the landlord fails to repay the mortgage loan on time, the house may be auctioned, and after deducting the loan amount from the auction price, there may be insufficient funds left to return the jeonse deposit to the tenant.

Therefore, it is essential to check the jeonse rate (the ratio of jeonse price to sale price).

Surrounding sale and jeonse prices can be easily checked online. You can refer to the Ministry of Land, Infrastructure and Transport’s Real Transaction Price Disclosure System website or the Korea Real Estate Board’s Real Estate Tech website. Alternatively, visiting two or three nearby real estate agencies to check the market price is also possible.

② Use the Standard Housing Lease Contract

If there are no unusual findings after checking the market price, proceed to the contract stage. At this time, it is advisable to request the real estate agent to use the "Standard Housing Lease Contract."

This contract guides essential pre-contract checks such as securing the right to oppose third parties and priority repayment rights, and provides information to protect the tenant’s deposit.

The standard contract can also be downloaded for free from the Ministry of Land, Infrastructure and Transport’s Real Transaction Price Disclosure System website.

③ Verify Priority Claims Such as Mortgage Rights and Jeonse Rights

If jeonse deposit damage occurs, repayment is made according to the priority order of property rights such as mortgage rights. By checking the scale of higher-priority claims, tenants can estimate in advance the amount of deposit they can recover in case of an accident.

To check this, use the nearest registry office, the internet registry office website, or the unmanned civil service issuance machine at the community service center. Enter the address of the property to issue the registry certificate and check the mortgage and jeonse rights under the "Eul-gu" section.

④ Check the Landlord’s Tax Delinquency Status

The landlord’s unpaid taxes take precedence over the tenant’s deposit in repayment. If the landlord goes bankrupt due to failure to pay comprehensive real estate tax, property tax, etc., the tenant may not be able to get their deposit back.

You can request a tax payment certificate from the landlord to check for delinquency. National taxes can be issued at the tax office, and local taxes at the community service center. If the landlord issues it directly, it can also be obtained online through Hometax or Witax.

⑤ Confirm Priority Deposits

In multi-family houses, there are multiple tenants. By checking the deposits with priority over the parties involved in advance, tenants can estimate the amount they may be repaid if jeonse deposit damage occurs in the future.

The landlord or tenant can visit the community service center or registry office to obtain the status of confirmed dates. If it is before the lease contract, the landlord’s consent is required.

After the lease contract, ▲lease (confirmed date) registration ▲move-in registration ▲subscription to jeonse deposit return guarantee are necessary.

⑥ Lease (Confirmed Date) Registration

Lease contract registration is a legal obligation. The registration target is real estate nationwide (excluding county areas under provincial jurisdiction, but including county areas within Gyeonggi Province) where the deposit exceeds 60 million KRW or monthly rent exceeds 300,000 KRW.

When the lease contract is registered, a confirmed date is assigned, which grants priority repayment rights.

Registration can be done at the local community service center. You must bring your ID and lease contract. It can also be registered online via the Real Estate Transaction Management System website.

⑦ Move-in Registration

Move-in registration is also a legal obligation. It must be reported within 14 days from the occurrence of the reporting reason, and failure to do so results in a fine.

If move-in registration is not done, the tenant’s deposit protection cannot be guaranteed.

It can be easily reported at the local community service center or online via the Government24 website.

⑧ Subscription to Jeonse Deposit Return Guarantee

If you subscribe to the jeonse deposit return guarantee, even if the landlord cannot return the deposit to the tenant due to reasons such as a drop in jeonse prices, the guarantee institution will repay the full deposit on your behalf.

Guarantee services are provided by the Housing and Urban Guarantee Corporation, Korea Housing Finance Corporation, Seoul Guarantee Insurance, and others.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is announcing measures to prevent jeonse fraud at the government Seoul office briefing room on the 1st.

On the 1st of this month, the government announced a "Jeonse Fraud Damage Prevention Plan" jointly with related ministries.

At this event, Minister Won said, "Recently, jeonse fraud damage threatening the property and homes of ordinary people has been increasing," adding, "We will prevent jeonse fraud damage, promptly remedy unavoidable damages, and strictly punish criminals."

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