From March, Landlord Credit and Debt Information Can Be Checked When Signing Jeonse Contracts

Korea Association of Realtors-NICE Credit Information Business Agreement
"Reducing Jeonse Fraud Risks for Tenants and Realtors"

[Asia Economy Reporter Noh Kyung-jo] Starting next month, tenants will be able to immediately check the landlord's national tax arrears and debt information when signing a lease contract through a licensed real estate agent office (hereinafter referred to as "gongin").

The Korea Association of Licensed Real Estate Agents and NICE Credit Information announced on the 6th that they have established the 'Credit Certification Transmission Service' system to prevent defective lease transactions such as lease fraud and to secure a nationwide social safety net, and signed a related business agreement.

Lee Jong-hyuk, President of the Korea Association of Certified Real Estate Agents (left), and Shin Hee-bu, CEO of NICE Credit Information, are shaking hands on the 6th after signing a business agreement to promote the use of credit information to prevent defective lease transactions. / Photo by the Association of Certified Real Estate Agents

Accordingly, from March, tenants will be able to inquire about the landlord's national and local tax arrears, debt information, and long-term delinquency at financial institutions with the landlord's consent when signing contracts at a gongin office.

The system will undergo a trial operation this month on the 'Hanbang Transaction Information Network' platform, the official comprehensive real estate transaction system used by licensed real estate agents when drafting contracts.

The association explained that by using this service, tenants will no longer need to visit the tax office in person to check the landlord's tax arrears information. Licensed real estate agents are also expected to be safer from unexpected risks related to lease fraud.

Chairman Lee Jong-hyuk of the association said, "Until now, it has been difficult for tenants as well as licensed real estate agents conducting contracts to obtain the landlord's tax arrears information, exposing them to lease fraud crimes. We expect that the landlord credit information inquiry service before contract signing will partially resolve the information asymmetry issue between landlords and tenants, which is considered a major cause of lease fraud."

The association and NICE Credit Information plan to develop and operate various systems to prevent lease fraud by providing other mutually held information.