Handonghun's 'Jeonse Deposit Increase' Controversy, Tenant Says "Rather, Reduce the Deposit"

Minister of Justice nominee Han Dong-hoon is answering questions from reporters as he arrives at the Seoul High Prosecutors' Office building in Seocho-gu, Seoul, where his nominee office was set up, on the morning of the 15th. [Image source=Yonhap News]

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[Asia Economy Reporter Kim Jung-wan] Han Dong-hoon, the nominee for Minister of Justice, faced controversy for raising the jeonse deposit of the Sampung Apartment in Seocho-gu, Seoul, which he co-owns with his spouse, by more than 40% last year. However, the tenant of the apartment explained that "it was actually a reduction, not an increase."

According to a report by Munhwa Ilbo on the 18th, Mr. A, who lives in the apartment owned by the Han couple under a jeonse lease, said, "Around December 2020, about three months before the expiration of the jeonse contract, I informed the landlord (the Han couple) that I would not renew the contract. However, considering my age, moving costs, and the convenience facilities I was already using, I changed my mind and made a new contract with them again before the new tenant's contract was finalized."

Mr. A stated, "They initially listed the deposit at 1.85 billion KRW, but due to our circumstances, we asked to lower it to 1.75 billion KRW, and they agreed to reduce it. Even though another tenant could have paid a higher jeonse deposit, they adjusted both the price and contract date to suit us, which I appreciated."

Mr. A also told Munhwa Ilbo that he has proof of communication via text messages with Han’s spouse, saying, "If I hadn’t changed my mind about moving, the loss would have been incurred by Mr. Han, but that consideration has been distorted into a legal violation controversy, which I feel sorry about."

Earlier, on the 2nd, Han reported a jeonse deposit of 1.75 billion KRW for an apartment in Seocho-dong, Seocho-gu, together with his spouse in the '2022 Public Officials’ Regular Property Changes' disclosed by the Government Ethics Committee. The jeonse deposit Han disclosed last year was 1.22 billion KRW, which means it increased by about 43% (530 million KRW) in one year. This raised concerns about a possible violation of the Housing Lease Protection Act.

The amended Lease Protection Act of 2020 allows tenants to request a two-year extension upon expiration of the existing contract. Landlords must accept this unless they have reasons such as actual residence, and the rent increase cannot exceed 5% of the previous contract amount.

Regarding this, Han’s side explained, "This is not a violation of the Lease Protection Act. The previous tenant intended to return to their own home, so we looked for a new tenant through a broker." They added, "Later, the tenant proposed to continue living in the house and to sign a new jeonse contract according to the market price, and the contract was made through mutual agreement."

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