Launch of 'Special Jeonse Deposit Return Guarantee' for Reverse Jeonse Landlords Application

Korea Housing Finance Corporation (HF) announced on the 31st that it will launch a special Jeonse deposit return guarantee that landlords can apply for to protect subsequent tenants of houses that received loans with relaxed total debt service ratio (TDSR) regulations for Jeonse deposit returns.

[Image source=Yonhap News]

Landlords who have used Jeonse deposit return loans under the relaxed DSR regulations are required to subscribe to a special return guarantee from one of the guarantee institutions (HF, HUG, SGI) and pay the guarantee fee.

The special return guarantee can be applied for only for lease contracts commenced by September 30, 2025, reflecting the temporary DSR regulation relaxation. Tenants of houses subscribed to the special return guarantee can receive the deposit payment from the guarantee institution if the landlord fails to return the deposit without justifiable reasons after the lease contract period ends.

Furthermore, the per-case guarantee limit for HF’s special return guarantee remains at 1 billion KRW as before, but the guarantee limit per landlord has been increased to 3 billion KRW. This is intended to protect tenants who enter into lease contracts with landlords owning multiple houses.

The special return guarantee can be subscribed to at all three guarantee institutions (HF, HUG, SGI), and HF’s special return guarantee will be sequentially offered through entrusted financial institutions (commercial banks) once preparations such as system development are completed.

An HF official stated, "By allowing landlords to apply for the special return guarantee, which previously had to be applied for by tenants moving into reversed Jeonse houses, the inconvenience for new tenants is reduced and landlords can more easily fulfill their obligation to subscribe to the special return guarantee."

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