Prevent Damage from Jeonse in '1000-Unit Villas'... Kim Byung-wook Establishes Legal Basis for 'Jeonse Deposit Insurance'

Under current 'Housing and Urban Fund Act,' HUG's duties do not specify 'Jeonse Deposit Insurance'
Legal basis for Jeonse Deposit Insurance needed to enable sustainable project implementation
Kim Byung-wook "Expect institutional improvements and policy expansion to protect low-income tenants through bill proposal"

[Asia Economy Reporter Oh Ju-yeon] A bill to establish the legal basis for the Jeonse Deposit Insurance, which is implemented to protect the Jeonse deposits of ordinary citizens, has been proposed.

On the 19th, Kim Byung-wook, a member of the National Assembly from the Democratic Party belonging to the Land, Infrastructure and Transport Committee, announced that he has taken the lead in proposing the "Housing and Urban Fund Act Amendment" to establish a stable institutional foundation for the Jeonse Deposit Return Guarantee implemented by the Housing and Urban Guarantee Corporation (HUG).

Kim Byung-wook, Head of the Functional Headquarters of the Democratic Party's Presidential Campaign Committee. / Photo by Yoon Dong-joo doso7@

The current Housing and Urban Fund Act stipulates HUG's duties including ▲operation and management of the housing and urban fund ▲guarantees for pre-sale, rental deposits, defect repairs, and securitized bonds, but Jeonse Deposit Insurance is not specified in the law.

The bill led by Assemblyman Kim specifies the legal basis for the Jeonse Deposit Insurance, which is currently operated based on HUG's articles of incorporation, to establish a stable and sustainable institutional foundation for the Jeonse Deposit Insurance.

According to the Korea Real Estate Board's 'Real Estate Tech' disclosure data, as of last November, the number of Jeonse Deposit Insurance accident cases was 852, and the amount of guarantee accidents was 186.2 billion KRW. Such Jeonse guarantee accidents are on the rise.

In a situation where issues such as "empty Jeonse" and Jeonse fraud, as well as malicious landlords, have emerged as social problems following incidents like the death of the "1,000 Villa Owner" and the non-return of Jeonse deposits, the bill to establish the legal basis for Jeonse Deposit Insurance is expected to contribute to policy improvements for protecting low-income tenants.

Assemblyman Kim said, "Jeonse Deposit Insurance is one of the most important systems to protect low-income tenants," adding, "I expect that the bill I proposed will contribute to the sustainable operation of Jeonse Deposit Insurance, tenant protection, and future institutional improvements and policy expansion."

The bill was co-sponsored by 20 members of the National Assembly including Kim Byung-wook, Seo Young-seok, Jung Sung-ho, Min Hyung-bae, Park Jae-ho, Hong Jeong-min, Han Jun-ho, Park Sung-joon, Heo Jong-sik, Kim Min-ki, Yang Ki-dae, Kim Seung-nam, Kim Young-jin, Kim Doo-kwan, Cho Eung-cheon, Kim Jong-min, Kim Han-gyu, Yoon Gun-young, Lee Tan-hee, and Kim Tae-nyeon.