"Landlord Unreachable"... Tenant 'Jeonse Phobia' Spreading

Lowest Ever Share of Villa Lease and Jeonse in Seoul in Q1
Young Workers Say "I'm Afraid I Won't Get My Deposit Back"
Various Communities Share Prevention and Response Tips

Recently, large-scale damages caused by jeonse fraud and "empty jeonse" have been occurring one after another, leaving tenants anxious. Especially, social newcomers and newlyweds living in villas or officetels are greatly worried about the non-return of deposits, to the extent that it can be called "jeonse phobia." Posts about how to prevent jeonse fraud and how to respond are continuously appearing on various communities. On the other hand, in this social atmosphere, even honest landlords are feeling embarrassed, saying they are being treated as "potential fraudsters."

[Image source=Yonhap News]

According to the Seoul Real Estate Information Plaza on the 23rd, the number of jeonse and monthly rent transactions for villas (multi-family and row houses) in Seoul in the first quarter of this year was 27,617. Among them, the number of jeonse transactions was 14,903, accounting for 54.0% of the total transactions. The proportion of jeonse in the first quarter of this year was the lowest since the Seoul Real Estate Information Plaza began compiling related statistics in 2011.

Among the 25 autonomous districts in Seoul, Nowon-gu had the lowest proportion of villa jeonse. In the first quarter of this year, the number of villa jeonse and monthly rent transactions in Nowon-gu was 424, of which 179 were jeonse transactions, resulting in a jeonse proportion of 42.2%. This was followed by Jongno-gu at 42.6%, Gangnam-gu at 43.0%, Songpa-gu at 44.8%, Seodaemun-gu at 46.0%, Gwanak-gu at 46.3%, Jung-gu at 47.0%, and Seocho-gu at 49.9%, all of which had jeonse proportions below 50%.

The reason villa tenants are avoiding jeonse like this is due to the large-scale jeonse fraud that surfaced since the end of last year. As thousands of people in Michuhol-gu, Incheon, and the Hwagok-dong area of Gangseo-gu, Seoul, were unable to get their deposits back, "jeonse phobia" spread. Hwang Hansol, a research fellow at Economy Manlab, said, "Due to issues such as empty jeonse and jeonse fraud, anxiety about villa jeonse is increasing, causing the proportion of jeonse to gradually decrease, while the proportion of semi-monthly rent or semi-jeonse is increasing."

Although the government has presented various countermeasures, posts about jeonse fraud prevention methods, responses, and questions continue to appear not only on real estate communities but also on various other communities. Even if landlords have no ill intent, the recent decline in housing prices has increased the risk of tenants suffering damages due to empty houses. Tenant A, who lives in a villa with a deposit of around 300 million KRW in Seongbuk-gu, Seoul, recently asked for help regarding jeonse fraud in a university community where they graduated. A said, "I inquired with the landlord about the possibility of returning the deposit ahead of the contract expiration in May, and a few days later, the landlord contacted me asking to live a few more months, which makes me anxious," adding, "I want to trust the landlord, but just in case, I am seeking advice from seniors with extensive real estate experience on how to respond."

As non-apartment jeonse becomes a target of avoidance like this, honest landlords are also equally troubled. C, who rented a villa in Dongdaemun-gu, Seoul, said, "The contract will expire in the fall, and I will probably have to find a new tenant," adding, "I feel like a potential fraudster, so it seems I have to show prospective tenants my certificate of employment or pay stubs."

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