Kakao Pay Insurance Launches "Direct Transaction Jeonse·Wolse Insurance" to Address Jeonse Fraud Blind Spots

First Mobile-Based Insurance for Safe Jeonse and Wolse Contracts Without Real Estate Agents
Lower Premiums Than Brokerage Fees
Up to Three Years of Coverage with a Single Payment

On August 14, Kakao Pay Insurance announced the launch of its new "Direct Transaction Jeonse·Wolse Insurance," designed for tenants who sign rental contracts directly with landlords without going through a licensed real estate agent.

This is the first mobile-based insurance product that covers the risks associated with direct rental contracts, which have been a blind spot for victims of jeonse fraud.

Earlier this year, Kakao Pay Insurance introduced the "Jeonse·Wolse Insurance" (formerly Jeonse Safety Insurance). With this new product, the company has established a comprehensive protection system for tenants, covering both contracts signed through agents and direct transactions. The aim is to further strengthen the practical safety net for tenants, providing not only prevention of damages but also substantial compensation in the event of losses.

The Direct Transaction Jeonse·Wolse Insurance is available for real estate contracts made both offline and through online platforms. Notably, contracts signed via major direct transaction platforms such as "Danggeun" and "Peterpan" are also eligible for coverage.

Unlike existing jeonse deposit return guarantees offered by organizations like the Korea Housing and Urban Guarantee Corporation (HUG), this insurance can be purchased before moving in. It provides broad protection against fraud that may occur before tenants acquire legal protection (such as a fixed date, moving-in report, or occupancy rights).

The coverage extends to all types of fraud that may occur from immediately after signing the contract until its termination. Specifically, it covers: contracts with fake landlords who do not own the property (including forged IDs or registry documents); contracts with unauthorized agents (including forged power of attorney or seal certificates); losses of deposits due to double contracts on the same property; the creation of senior rights (such as mortgage liens) on the day of the tenant's move-in report due to the landlord taking out a loan; and inability to move in due to the previous tenant still occupying the property. In all these cases, the full amount of the deposit loss is compensated.

The insurance covers deposits for jeonse and wolse contracts on apartments, multiplex and multi-unit houses, and residential officetels. The coverage amount ranges from 10 million KRW to 500 million KRW.

The premium is paid only once at the time of enrollment, and coverage continues until the end of the contract (up to a maximum of three years). Considering that direct transaction contracts are more common for wolse or small-sum jeonse, the insurance provides effective protection for deposits at a cost lower than the typical brokerage fee.

For example, the premium for a contract with a 30 million KRW deposit is 50,700 KRW, and for a 100 million KRW deposit, it is 181,600 KRW. Both are lower than the maximum brokerage fee (300,000 KRW each) for a 30 million KRW deposit and 500,000 KRW monthly rent contract, or a 100 million KRW jeonse contract in Seoul.

In addition to compensation for damages, the Jeonse·Wolse Insurance also offers a free service to assess the risks of the property before signing. Users receive a "My Home Report," which analyzes landlord information, checks for malicious landlords, evaluates the appropriateness of the deposit, and reviews the property’s legal status and risk factors. During the contract period, if there are any changes in the registry, such as a change of landlord or new mortgage registration, users are notified through the "Registry Change Notification Service."

To enroll, applicants must prepare the lease contract with a fixed date and a record of the deposit transfer. Enrollment is possible up to six business days before the start date of the contract. Detailed information on coverage and premiums is available on the Kakao Pay Insurance website.

Jang Younggeun, CEO of Kakao Pay Insurance, stated, "Cases of young adults and people with little rental experience suffering losses when searching for homes continue to occur," adding, "The Direct Transaction Jeonse·Wolse Insurance reflects Kakao Pay Insurance's strong commitment to creating a safer residential environment."