Daegu Expands Jeonse Deposit Return Guarantee Fee Support from 300,000 Won to 400,000 Won

On July 11, the Daegu city government announced that it will continue the "Jeonse Deposit Return Guarantee Fee Support Program" in the second half of this year to prevent damages from the non-return of deposits caused by jeonse fraud and reverse jeonse, and to promote housing stability for citizens.

This program provides support of up to 400,000 won for guarantee fees paid by tenants who subscribe to return guarantees from the Korea Housing and Urban Guarantee Corporation (HUG), Korea Housing Finance Corporation (HF), or Seoul Guarantee Insurance (SGI), in case they are unable to recover their deposit after the end of a jeonse contract. The support is provided by Daegu city, and is designed to help prevent damages from jeonse fraud.

Daegu City Hall Sangyeok Office

Daegu city proactively introduced this system in June 2022 as part of its youth housing support initiative, and it was later expanded nationwide with partial funding from the Ministry of Land, Infrastructure and Transport.

In particular, since the end of March, the maximum support limit for guarantee fees has been increased from 300,000 won to 400,000 won, following the restructuring of the guarantee fee system by the Korea Housing and Urban Guarantee Corporation and the increase in support funds by the Ministry of Land, Infrastructure and Transport.

Additionally, eligibility, which was previously limited to young people, has been expanded this year to include all age groups. Any tenant without a home who resides in Daegu and has a jeonse deposit of 300 million won or less, and meets certain income criteria, can apply.

The income criteria are as follows: for youth (ages 19 to 39), 50 million won or less; for general applicants other than youth, 60 million won or less; and for newlyweds, 75 million won or less.

However, foreigners, overseas Koreans not residing in Korea, residents of rental housing owned by private rental business operators, and corporate tenants are excluded from eligibility.

Applications can be submitted online via "Government24" or the "HUG Safe Jeonse Portal," and applicants will be notified of the progress via text message. If selected as a beneficiary, the guarantee fee will be paid directly to the applicant's account.

Heo Jooyoung, Director of the Urban Housing Bureau of Daegu city, stated, "The Jeonse Deposit Return Guarantee Fee Support Program has become an important system for housing stability, not only for low-income households but also for various social groups," and added, "We will continue to actively promote this program to do our utmost to create a safe housing environment for our citizens."