The Housing and Urban Guarantee Corporation (HUG) has opened a dedicated center to support landlords and tenants participating in its safe rental trust program. The initiative aims to reduce the risk of rental fraud by having the public directly manage security deposits for rental properties, with the investment returns going to landlords.
Kim Yi-tak, the First Vice Minister of Land, Infrastructure and Transport, held an inauguration ceremony for the 'HUG Safe Rental Trust Center' on September 22 in Yeouido, Seoul, attended by HUG President Choi In-ho, the president of the Korea Association of Realtors, the president of the Korea Housing Builders Association, and representatives from the Korea Financial Investment Association.
The safe rental trust program allows the public to manage security deposits for rental properties, enabling tenants to live at relatively lower housing costs while minimizing the risk of rental fraud.
Landlords will receive monthly payments from the profits generated by the public's management of the security deposits, ensuring stable income without the risk of rental arrears.
The security deposits will also be utilized to increase housing supply. The public plans to establish a 'Housing Supply Activation Fund' using the security deposits to invest in HUG-guaranteed project financing (PF) projects. This structure aims to safely manage tenants' security deposits while providing funding for housing projects.
Kim emphasized that the safe rental trust program is a model that promotes a stable rental environment for both landlords and tenants while also facilitating housing supply.
He urged HUG to ensure that the center becomes a trusted resource for both landlords and tenants, encouraging them to gather feedback from actual consultations and contract processes to share any necessary improvements for the program's stable establishment.
Choi In-ho stated, "This initiative presents a new solution for the rental market based on our accumulated experience and expertise, and we will responsibly promote it to establish a new housing support model that the public can trust and choose."
* This article has been translated by AI.
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