Seoul City Introduces Clean Landlord System: "Credit Check for Landlords Before Contract"

Agreement with KB Kookmin Bank, Zigbang, and Danggeun Market
Mark attached on Zigbang, etc. when registering as a Clean Landlord

Seoul City announced on the 3rd that it will pilot the 'Clean Landlord' system, which allows tenants to check landlords' financial and credit information before signing lease contracts, until November.

In this regard, an agreement for the 'Clean Landlord Pilot Project' was signed in the afternoon with KB Kookmin Bank, Zigbang, and Danggeun Market. The city will provide information on Clean Landlords, and private real estate platforms will cooperate in displaying (Clean Housing Mark) and managing Clean Landlord listings. The signing ceremony was attended by Seoul Mayor Oh Se-hoon, KB Kookmin Bank Vice President Kwak San-eop, Zigbang Vice President Min Ji-young, and Danggeun Market CEO Hwang Do-yeon.

The Clean Landlord system consists of three components: ▲Clean Landlord registration ▲Clean Housing certification ▲Clean Mark attachment.

If a landlord promises to disclose the housing rights status and their financial and credit information when signing a lease contract, they become a Clean Landlord. Among them, houses with clear rights status are certified as Clean Housing. When Clean Housing is listed as a property and posted on private real estate platform listings, a 'Clean Mark' is attached.

Tenants can check the rights status of Clean Housing, national and local tax payment status, and Korea Credit Bureau (KCB) credit scores. Clean Landlords are required to disclose this information at least twice: once when showing the property and once when drafting the lease contract. During the pilot phase until November, the project will target livelihood-type landlords (with a KCB credit score of 891 or higher) who own three or fewer multi-family villa houses located within Seoul.

To prevent incidents of non-return of jeonse deposits for Clean Housing, Seoul City will support subscription to the Jeonse Deposit Return Guarantee and establish institutional safety nets such as joint tenant contracts with Seoul Housing and Communities Corporation (SH).

The city expects that once this system is activated, it will help landlords, who have been struggling with the stagnation of the villa jeonse market, to secure faster contracts, and tenants will be able to conduct jeonse transactions with peace of mind. After the pilot operation, the city plans to analyze the effects of the system implementation and consider adjusting or expanding the system.

Mayor Oh said, "There has been a continuous call that the first step to establishing a sound lease contract culture is the disclosure of landlords' financial and credit information, so we decided to pilot this system. We will strive to revitalize the villa jeonse market and establish a lease contract culture where everyone can feel secure."

Meanwhile, Seoul City conducted a survey targeting landlords of row houses and multi-family houses and licensed real estate agents for the introduction of Clean Landlords. Seventy percent of respondents answered that this system would positively contribute to normalizing the jeonse market by increasing trust in listings. Sixty-five percent of respondents also said that it is necessary to support subscription to guarantee insurance as an initial incentive.