Kakao Pay Insurance Launches 'Jeonse Safety Insurance' Covering Jeonse Fraud Risks

Kakao Pay Insurance announced on the 25th that it has launched the 'Jeonse Safety Insurance' to protect tenants from the risks of Jeonse fraud.

Jeonse Safety Insurance is the first mobile-based rights insurance for leasehold rights in Korea. It covers various types of Jeonse fraud that could not be resolved by the existing Jeonse deposit refund guarantee. It provides coverage not only for Jeonse deposits but also for monthly rent deposits, offering an additional safety net for tenants who pay large sums as deposits when signing Jeonse or monthly rent contracts.

The Jeonse deposit refund guarantee products provided by Housing and Urban Guarantee Corporation (HUG), Korea Housing Finance Corporation (HF), and Seoul Guarantee Insurance (SGI Seoul Guarantee) mainly cover non-refund of deposits due to issues like "empty Jeonse" (Kkangtong Jeonse). In contrast, Kakao Pay Insurance's Jeonse Safety Insurance covers various Jeonse fraud risks that may occur before securing the tenant's legal protection rights (Daehangryeok) through moving-in registration and confirmed date after contract signing. For example, the insurance applies if the landlord has already signed a double contract with another tenant or provides a forged certified copy of the register. It also covers cases such as mortgage Jeonse fraud set on the moving-in registration date, contracts with fake landlords, and forged documents provided by colluding real estate agents.

Jeonse Safety Insurance can be easily subscribed through the KakaoTalk or Kakao Pay applications. Required documents include the real estate Jeonse contract with a confirmed date and proof of deposit transfer. After submitting the documents, subscription is possible once the rights investigation is completed by Refine, a specialized rights investigation agency, before insurance underwriting.

This product covers deposits for Jeonse and monthly rent contracts for apartments, multi-family villas, row houses, and residential officetels. The coverage amount ranges from a minimum of 10 million KRW to a maximum of 1 billion KRW. Subscription is available after signing the contract through a licensed real estate agent and receiving the lease contract registration certificate (confirmed date), with the balance payment date at least 7 business days and up to 3 months away.

Jeonse Safety Insurance offers two options tailored to tenants' needs. The 'Economy Plan' covers only the deposit, reducing the insurance premium burden. The 'Comprehensive Plan' covers the entire deposit, including the down payment and balance, suitable for tenants seeking more thorough protection. The premium varies depending on the coverage amount (pure coverage type) and is paid once at subscription. For example, the premium for the Economy Plan covering a 30 million KRW deposit is 41,300 KRW, while the premium for the Comprehensive Plan covering a 100 million KRW deposit is 147,700 KRW.

After subscription, free services such as 'Our Home Report' and 'Registration Change Notification Service' are provided. 'Our Home Report' checks the landlord investigation, excessive deposit, rights infringement, and eligibility for HUG refund guarantee, providing essential information before paying the balance. The 'Registration Change Notification Service' informs of any changes in the certified copy of the register occurring from subscription until the contract period ends, offering continuous safety even after the Jeonse contract.

Our Home Report, Registration Change Notification Service, and prior investigations for insurance underwriting are conducted in cooperation with Refine, the entrusted rights investigation agency.

Jang Young-geun, CEO of Kakao Pay Insurance, said, “Jeonse Safety Insurance is an innovative product that alleviates anxiety about Jeonse contracts and protects tenants from various Jeonse fraud risks,” adding, “It will be an essential safety device not only for Jeonse but also for tenants signing monthly rent contracts.”