This Year’s Jeonse Deposit Accident Amount 3 Trillion Won... Recovery Rate of Deposits Returned on Behalf of Malicious Landlords 9.7%

This Year's Guarantee Accident Amount Nearly Tripled Compared to Last Year
374 Malicious Landlords... Repayment Amount 1.7 Trillion

The Housing and Urban Guarantee Corporation (HUG) has been found to have a recovery rate of less than 10% for jeonse deposits returned to tenants instead of malicious landlords as of August this year.

Victims of jeonse fraud and empty jeonse are participating in a relay speech on the 25th at a sit-in in front of the National Assembly in Yeouido, Seoul, urging proper resolution of jeonse fraud and empty jeonse issues. Photo by Hyunmin Kim kimhyun81@

According to an analysis of HUG data by the office of Kim Hak-yong, a member of the National Assembly's Land, Infrastructure and Transport Committee from the People Power Party, as of last August, there were 374 malicious landlords who had been paid the jeonse deposit three or more times by HUG but have since cut off contact or have not repaid any guarantee debt in the past year. A guarantee accident refers to cases where tenants fail to receive their jeonse deposit back within one month after terminating the jeonse contract, or when an auction or public sale occurs during the jeonse contract period and the tenant does not recover the jeonse deposit after distribution.

The amount of jeonse guarantee accidents that occurred from the beginning of this year until last month totaled 3.1245 trillion won (13,903 cases). Considering that the total accident amount for last year was 1.1726 trillion won, the scale of guarantee accidents has nearly tripled this year. According to data previously submitted by HUG to Jo O-seop, a member of the Democratic Party, the expected scale of jeonse guarantee accidents this year is around 3.7861 trillion won.

The number of malicious landlords, which was around 80 in 2020, has rapidly increased recently, along with a sharp rise in the number of households for which HUG has paid deposits and the amount repaid. Malicious landlords are defined as landlords who have had their jeonse deposit repaid three or more times by HUG, have cut off contact, or have not repaid any guarantee debt in the past year. As of last August, the number of households repaid by malicious landlords increased by about 3,000 from the end of last year to 8,476 households, and the repayment amount also rose from 1 trillion won to 1.7 trillion won during the same period.

On the other hand, the amount recovered was only 167.4 billion won, less than 10% of the total repayment amount.

Typically, the recovery of jeonse deposits is carried out through auctions of houses owned by malicious landlords. However, due to the recent downturn in the real estate market and the fact that most of the houses owned by malicious landlords are villas, recovery through auctions appears to be difficult.

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