Korea Housing & Urban Guarantee Corporation (HUG) said on the 20th it will operate a "jeonse guarantee preliminary screening system" starting in late Oct., which lets tenants check in advance, even before moving, whether they are eligible to enroll in the jeonse deposit refund guarantee.
Currently, tenants can apply for the guarantee only after paying the balance and moving, raising concerns that, if the guarantee is denied, disputes with landlords may arise or the jeonse deposit may not be returned.
Under the jeonse guarantee preliminary screening system, once a tenant signs a contract and applies for a preliminary screening in the Safe Jeonse app, HUG automatically reviews it and informs the tenant in advance whether the guarantee can be issued. The review result can be received via KakaoTalk Alimtalk, and after paying the balance, moving, filing a move-in report, and submitting the documents, the tenant is issued a guarantee certificate.
In particular, as HUG last year, together with Korea Association of Realtors(KAR), added a "contract cancellation special clause" to the standard lease agreement that allows the deposit to be returned and the contract to be canceled if the guarantee is rejected due to the landlord, a lease environment is expected in which the deposit is also protected.
HUG will also introduce a system under which a legal representative, such as a parent, provides a joint guarantee when the landlord is a minor. Previously, even if parents managed a minor landlord's contract, they could not be held jointly liable or have their assets investigated if a guarantee accident occurred. Going forward, however, the legal representative will share responsibility for returning a minor landlord's jeonse deposit, enhancing the effectiveness of the jeonse guarantee system.
Choi In-ho, HUG president, said, "With innovations in jeonse guarantees, we will create a safe jeonse market that people can feel," adding, "We will continue to ensure that all people can conduct jeonse transactions with greater confidence, including by introducing the Safe Jeonse app that uses artificial intelligence (AI) technology."