Guarantee institutions for jeonse deposits will share information on landlords who fail to return deposits, which will be used to restrict the issuance of jeonse guarantees. Properties owned by landlords with a history of having deposits paid on their behalf by any guarantee institution will be restricted from obtaining jeonse and rental guarantees across all institutions.
The Housing and Urban Guarantee Corporation (HUG), the Korea Housing Finance Corporation (HF), and SGI Seoul Guarantee (SGI) announced on September 7 that they will jointly implement the 'Landlord Deposit Prohibition Information Sharing' initiative starting October 1.
This measure involves sharing information about landlords who have failed to return deposits to tenants, leading to compensation payments made by guarantee institutions. Consequently, these landlords will face restrictions on guarantee subscriptions for properties they own.
The guarantee institutions will send the landlord deposit prohibition information they hold to the Korea Credit Information Corporation, which will consolidate the data and provide it back to each guarantee institution.
Information on landlords who have not returned deposits can be collected and shared without the landlord's consent under the amended Enforcement Decree of the Credit Information Act, which took effect on February 3. The information shared will pertain to landlords who have failed to return deposits after the enforcement date. However, the restrictions on guarantees for these landlords will take effect on October 1.
HUG explained that this initiative aims to prevent recurring jeonse fraud and proactively block guarantee incidents. It is a follow-up measure under the Financial Services Commission's 'Household Debt Management Plan' and is part of efforts to establish an information-sharing infrastructure to prevent real estate financial fraud.
Starting September 21, the status of landlords regarding deposit prohibitions can be checked through the landlord information inquiry menu on the HUG Safe Jeonse app.
As information sharing among guarantee institutions becomes more established, tenants will be able to verify landlords' guarantee incident histories before signing contracts, enhancing risk assessment during the jeonse contract phase.
* This article has been translated by AI.
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