The city of Seongnam in Gyeonggi Province has established and is operating a banner plaza for the 'Kkangtong Jeonse Damage Prevention Counseling Center' on its homepage.
On the 29th, Seongnam City announced that it opened the counseling center on its homepage to prevent tenant damages such as Kkangtong Jeonse, which occur due to a lack of proper understanding of prices or senior rights relationships of newly built multi-family, row, and multiplex houses.
Kkangtong Jeonse refers to housing where the debt, such as the Jeonse deposit, exceeds the house price, so even if the landlord sells the house, they cannot fully return the deposit to the tenant.
Recently, damages have increased due to landlords' reckless bank loans expecting house price rises, and the connection between builders and sales agents targeting newly built villas with relatively opaque market prices.
In response, Gyeonggi Province, the Korea Association of Real Estate Appraisers, and the Korea Association of Realtors signed a 'Business Agreement on Tenant Protection for Newly Built Multi-Family Houses,' and established an online window where citizens of 31 cities and counties, including Seongnam, can receive counseling.
Citizens who wish to receive counseling can access the Kkangtong Jeonse Damage Prevention Counseling Center located in the middle of the Seongnam City homepage and enter housing information.
They can learn about the types of Kkangtong Jeonse and prevention methods, and consult by phone with appraisers assigned to the Seongnam area regarding appropriate housing prices.
The center also provides guidance on matters to check during lease contracts and the Jeonse deposit return guarantee system.
A city official stated, "Kkangtong Jeonse damages occur because landlords (lessors) set the Jeonse deposit high before the house price is officially announced. Therefore, consulting on the house price before the official announcement can prevent damages."
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