Housing Finance Corporation Raises Seoul Metropolitan Area Jeonse Return Guarantee Limit from 500 Million to 700 Million Won

Revisions Related to the Relaxation of Requirements for Jeonse Deposit Return Guarantee Enrollment. Photo by Korea Housing Finance Corporation

[Asia Economy Reporter Song Seung-seop] Korea Housing Finance Corporation announced on the 26th that it will expand the limit and application period for the Jeonse Deposit Return Guarantee product.

The Jeonse Deposit Return Guarantee is a system where, if the landlord fails to return the deposit to the tenant at the end of the lease contract, the corporation returns the deposit to the tenant and claims reimbursement rights from the landlord.

Starting from the 27th, the subscription limit will be raised from 500 million KRW to 700 million KRW for the metropolitan area. For other regions, it will increase from 300 million KRW to 500 million KRW. The application period has also been extended from before one-quarter of the lease period has passed to before half of the lease period has passed. Tenants who were previously unable to use the return guarantee due to exceeding the Jeonse deposit subscription limit can now apply if less than half of the contract period has elapsed.

President Choi Jun-woo stated, “We have lowered the entry barrier for the Jeonse Deposit Return Guarantee to protect low-income real demanders and promote inclusive finance,” and emphasized, “We will continue to establish institutional safeguards for tenants to contribute to housing stability for low-income households without homeownership.”