Three Guarantee Institutions to Share Data on Landlords Who Fail to Return Jeonse Deposits... Restrictions on Refund Guarantee Issuance

Joint Restriction Measures to Take Effect from October 1
Check Landlord's Guarantee Restriction Status Before Contracting via 'Safe Jeonse App'

Korea Housing Finance Corporation, Housing and Urban Guarantee Corporation, and SGI Seoul Guarantee, the three major guarantee institutions, announced on September 7 that starting from October 1, they will jointly implement a measure restricting the issuance of Jeonse deposit refund guarantees to landlords for whom the institutions had to pay out the Jeonse deposit on behalf of tenants, due to the landlords’ failure to return the deposit.

This measure aims to prevent recurring Jeonse fraud and guarantee accidents by having the three guarantee institutions share information about landlords who failed to return deposits and jointly restrict the handling of refund guarantees. To this end, each institution will consolidate and manage information on non-returning landlords at the Korea Credit Information Services and utilize such information in the guarantee screening process.

According to the revised Enforcement Decree of the Credit Information Act, which came into effect in February, information on non-returning landlords generated after the effective date can be collected and shared without the landlords' consent. However, the restriction on issuing guarantees for non-returning landlords will be enforced starting from October 1.

During September, the three guarantee institutions will post announcements on their respective websites to inform the public in advance. Additionally, to address information asymmetry for tenants, from September 21, the Housing and Urban Guarantee Corporation’s 'Safe Jeonse Application' will allow potential tenants to check in advance whether there is a restriction on obtaining a guarantee for a particular landlord before entering into a Jeonse contract.

This content was produced with the assistance of AI translation services.