Deposit Not Returned in Youth Safety Housing... "Seoul City Management Responsibility"

Accurate Damage Scale Not Confirmed
Left Unattended Without Guarantee Insurance Subscription

“I never imagined that the Youth Safety Housing promoted by Seoul City would face auction or seizure threats.”

There is an ongoing issue where tenants of Seoul City’s Youth Safety Housing are unable to recover their deposits due to financial problems of the landlords. Seoul City has not accurately grasped the scale of the damage and is shifting responsibility by claiming that the relevant district office did not verify whether deposit insurance was subscribed.

Apartment complex viewed from Namsan, Seoul. [Image source=Yonhap News]

On the 2nd, a Seoul City official stated, “Generally, the district office confirms whether deposit insurance is subscribed at the time of completion, but it seems there were parts overlooked in the early stages of the project,” adding, “We are providing administrative support so that the victims can secure as much legal protection as possible.”

Currently, six households in the Youth Safety Housing in Dobong-gu, Seoul, have not received their jeonse deposits back. The amount of damage is approximately 150 million KRW. The private developer’s financial condition worsened due to disputes with the construction company. The company is still not subscribed to deposit insurance. The landlord side said, “We are doing our best to resolve the deposit return issue.”

The victims are helpless. A university student, Mr. A (24), moved into the Seoul City Youth Safety Housing under private consignment lease in August 2022 but has not received his 25 million KRW deposit back. At that time, the landlord promised to subscribe to jeonse deposit insurance within a month, but the building was seized due to financial deterioration. Mr. Kim said, “I won a lawsuit for deposit return and submitted the ruling to Seoul City, but they only sent a letter urging the business owner to return the deposit quickly and took no other measures.”

Mr. B (26) lamented, “Seoul City promoted private rental housing through its official social media channels, but when problems arose, it seems they are backing out, which is frustrating,” adding, “I had a very hard time handling certified mail and applying for tenant registration orders on my own.”

Lee Kang-hoon, Vice Chairman of the People’s Solidarity for Participatory Democracy’s Steering Committee, pointed out, “The private operators of Youth Safety Housing are quite large companies, so the fact that management was neglected is Seoul City’s responsibility,” and added, “If deposit insurance was not subscribed, immediate notification and action should have been taken.” Professor Seo Jin-hyung of Kwangwoon University’s Department of Real Estate Law said, “The government must exercise meticulous care when conducting projects through private consignment,” and noted, “Seoul City also bears some responsibility.”