Recruiting 'Clean Landlords' Without Jeonse Fraud Worries... Tenant Deposit Fee Support Provided

Seoul City Recruiting Clean Landlords Until November 22
Verify Housing Rights, Landlord Financial and Credit Information
If Conditions Met, 'Clean Housing' Mark on Real Estate App
Support for Tenant Jeonse Deposit Insurance Fee (Up to 300,000 KRW)

The Seoul Metropolitan Government is launching the 'Clean Landlord' system, which allows tenants to verify the housing rights and the landlord's financial and credit information before signing a jeonse or monthly rent contract, enabling them to rent with peace of mind. It also supports tenant rental deposit insurance to prevent incidents of non-return of jeonse deposits.

On the 24th, Seoul announced that it will recruit Clean Landlords, who certify that tenants can safely enter into lease contracts, until November 22. Houses offered by Clean Landlords will be marked with a 'Clean Housing' label on real estate app listings such as KB Kookmin Bank and Zigbang.

Seoul introduced the Clean Landlord system to alleviate tenants' concerns about avoiding villa jeonse contracts due to the aftermath of jeonse fraud, and to establish a lease contract culture where both landlords and tenants can feel secure.

The eligibility criteria for Clean Landlord applicants are: landlords who own three or fewer rental housing units, whose rights related to multi-family or row houses located in Seoul are clear, and whose KCB credit score is 891 or higher (formerly grade 2 or above). Seoul verifies the eligibility of applicants and issues a registration certificate with a Clean Landlord certification number.

Landlords wishing to apply can visit the Seoul Comprehensive Support Center or apply by mail. Applicants must submit documents including credit score (KCB), certified copy of the register, national and local tax payment certificates, confirmation of fixed date registration, building register, and real estate ownership status. Landlord credit information must be disclosed to tenants at least twice: when viewing the property and when signing the contract.

To prevent incidents of non-return of jeonse deposits for Clean Housing, Seoul supports tenants' jeonse deposit insurance fees (up to 300,000 KRW). The Seoul Housing & Communities Corporation (SH) signs joint tenant contracts to protect the jeonse deposits.

The insurance fee support applies to residential housing with a tenant deposit of 300 million KRW or less. Annual income limits are 50 million KRW or less for youth, 60 million KRW or less for others, and 75 million KRW or less for newlyweds. Tenants must enroll in jeonse deposit insurance such as HUG or HF.

If support for the jeonse deposit insurance fee is not possible, the 'Long-term Safe Housing (Deposit Support Type)' program is used, where a tripartite contract among the landlord, SH Corporation, and tenant enables SH to support the tenant's jeonse deposit insurance fee to prepare against deposit non-return incidents.

The target housing for Long-term Safe Housing (Deposit Support Type) is residential housing in Seoul with a deposit of 490 million KRW or less (exclusive area 85㎡ or less). Income conditions require household members without housing earning 100% or less of the average monthly urban worker income, and meeting criteria for real estate (215.5 million KRW or less) and automobiles (current value 37.08 million KRW or less). The program provides interest-free support for 30% of the insurance fee and deposit (up to 60 million KRW).

Although the pilot project currently limits target housing to villas and multi-family houses, Seoul plans to expand it after analyzing the effects and evaluating the outcomes.

Han Byung-yong, Director of Seoul's Housing Policy Office, said, "As jeonse fraud damages have prolonged, transactions of villas, which have been a stepping stone for ordinary citizens' housing, have sharply declined, causing a vicious cycle where even honest landlords suffer. We hope that through the Clean Landlord system, the depressed villa jeonse market will regain vitality and a lease contract culture where everyone can trade with confidence will be established."