LH, HUG to Apply Jeonse Deposit Return Guarantee to Jeonse Rental Housing from October

[Financial News] The Korea Land and Housing Corporation (LH) will apply the Korea Housing & Urban Guarantee Corporation (HUG)'s jeonse deposit return guarantee to about 200,000 LH jeonse rental housing units. The measure is intended to strengthen deposit protection for residents by linking the two institutions' information from guarantee enrollment through post-enrollment management.
LH and HUG announced on the 18th that they had signed an agreement on return guarantees for jeonse rental housing and would implement the program starting October 1.
A jeonse deposit return guarantee is a system under which a guarantee provider pays the deposit on behalf of a landlord if the landlord is unable to return it after the lease ends. Under the jeonse rental housing system, LH signs a jeonse contract with the landlord for a home selected by the resident and then leases the home back to the resident.
LH and HUG will strengthen the guarantee enrollment review and post-enrollment management systems by linking information related to jeonse rental housing. Through the Ansim Jeonse App, users will be able to check in advance whether a landlord is barred from obtaining an HUG guarantee and review the property's rights and encumbrances.
As a result, the system will be improved so that lease information related to tenants' legal protection, which previously had to be checked separately through multiple institutions, can be viewed in one place on the Ansim Jeonse App.
Lee Seong-hoon, president of LH, said, "We expect this agreement to significantly strengthen the deposit management system for jeonse rental housing while greatly improving convenience for residents. Alongside providing stable housing, we will continue building a reliable housing safety net that enables people to live with peace of mind."
Choi In-ho, president of HUG, stated, "This agreement is a meaningful cooperation model between HUG and LH aimed at protecting the deposits of housing-vulnerable groups and promoting the supply of public rental housing. The two institutions will continue to work closely together and fulfill their role as a strong pillar of housing stability for the public."

[email protected] Choi Ga-young Reporter