"Don't Worry About Losing Your Jeonse Deposit"... Ulsan City Supports 'Guarantee Fees'

Secured 600 Million Won in Project Funds This Year

Ulsan City will support the guarantee fees for subscribing to the Jeonse Deposit Return Guarantee product.

On the 11th, Ulsan City announced that it has secured 600 million KRW (300 million KRW in national funds) for the "2023 Jeonse Deposit Return Guarantee Fee Support Project" to encourage subscription to the Jeonse guarantee among young people and newlyweds, who are relatively more exposed to the risk of Jeonse fraud.

This year's guarantee fee support project began accepting applications on July 26, and with the secured budget, actual payments will be made to eligible subscribers of the Jeonse Deposit Return Guarantee.

The support procedure is as follows: applicants pay the guarantee fee to the guarantee institutions (Korea Housing Finance Corporation, Housing and Urban Guarantee Corporation, Seoul Guarantee Insurance), then apply for the support project at the district or county office with jurisdiction over the leased housing address. After review, up to 300,000 KRW will be refunded to the applicant's account.

The support targets are household heads aged 19 to 39 without home ownership. The support conditions are residing in housing with a lease deposit of 300 million KRW or less and having an annual income of 50 million KRW or less. However, newlyweds are supported up to an annual income of 70 million KRW.

The support covers guarantee fees (up to 300,000 KRW) for subscriptions to the "Jeonse Deposit Return Guarantee Institution" after January 1, 2023.

An official from Ulsan City stated, "Jeonse fraud victims mostly fail to recover tens of millions to hundreds of millions of KRW in Jeonse deposits. For economically vulnerable young people, the Jeonse deposit is almost their entire asset, so failure to recover it causes greater psychological and economic burdens," adding, "Subscription to guarantee insurance is essential to prevent damages from non-return of Jeonse deposits."

The Jeonse Deposit Return Guarantee is a guarantee product that compensates tenants for damages incurred if they do not receive their deposit back when the leased house is auctioned or publicly sold, or when the lease contract is terminated or ends.

The guarantee institutions offering the product are Housing and Urban Guarantee Corporation (HUG), Korea Housing Finance Corporation (HF), and SGI Seoul Guarantee. Applications can be made through the guarantee institutions' websites or entrusted financial institutions.

Ulsan City Hall.

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