"Credit Score 591, Caution for Owners with 4 or More Properties" — Seoul Metropolitan Government to Disclose 'Jeonse Fraud Landlords'

[Financial News] The Seoul Metropolitan Government is launching a service that uses Artificial Intelligence (AI) to identify and notify tenants of risk factors before signing a lease agreement.
On the 24th, the Seoul Metropolitan Government announced the launch of the 'Jeonse Fraud Risk Analysis Report' service, which enables tenants to easily check risk factors related to both the property and the landlord before entering into a contract.
By analyzing data from approximately 1,500 landlords involved in jeonse fraud using AI, the city identified common characteristics that distinguish them from ordinary landlords and derived 11 warning signs.
The most notable difference is 'credit score.' The average KCB Credit Score of landlords involved in jeonse fraud at the time of contract was 591, which is more than 300 points lower than that of ordinary landlords (908). The proportion of credit delinquents was also significant, with about one in four (approximately 27%) falling into this category, indicating a markedly lower level of financial trustworthiness.
There was also a clear difference in the number of properties owned. While 25% of fraudulent landlords were multiple property owners with four or more properties, such cases were rare among ordinary landlords. The public record holding rate, including tax delinquency, was also much higher among fraudulent landlords at 26%, compared to just 0.7% for ordinary landlords.
Landlords involved in jeonse fraud also changed their mobile phone numbers and addresses more than twice as often as ordinary landlords within the past three years, demonstrating instability not only in financial behavior but also in other aspects of daily life.
The Seoul Metropolitan Government incorporated this analysis into the Jeonse Fraud Risk Analysis Report. The report provides a total of 24 types of information, including property details, to help comprehensively assess the safety of a jeonse contract.
The 11 types of landlord information include: KCB Credit Score, default status, financial disorder records, credit delinquency information, bankruptcy or personal rehabilitation, tax delinquency, history of arrears or fraud, and Debt Service Ratio (DSR), among others.
The 13 types of property information provided are: building usage, rights infringement status, building code violations, debt (mortgage) compared to market value, price appropriateness, guarantee insurance coverage, recommended contract clauses, loan probability, contract safety, and the responsible official’s comprehensive opinion.
The Jeonse Fraud Risk Analysis Report can be accessed by visiting the 'Jeonse Fraud Risk Analysis' banner on the Seoul Housing Portal or the Youth Seoul Information Portal, then connecting to the private real estate risk analysis platform 'NaejibScan' and using a coupon issued by the Seoul Metropolitan Government.
The service is available free of charge to 1,000 prospective tenants in Seoul. By entering the address of the property under consideration, users can receive information collected and analyzed by AI.

going@fnnews.com Choi Ga-young Reporter