The cheonsei deposit that the state gave to tenants instead of landlords hit another high this year.
According to the Housing and Urban Guarantee Corporation (HUG) today (7th), the subrogation amount of the jeonse deposit return guarantee insurance (number of households) is KRW 31.5 billion (1,516 households) from January to August this year, which is the total amount for the last year of 2 It surpassed KRW 183.66 billion (1,364 households).
If the landlord fails to return the jeonse deposit after the expiration of the lease contract, HUG pays a deposit (subrogation) to the subscriber (tenant) instead, and later exercises the right to reimburse the landlord.
Launched in September 2013, the subrogation amount for this product has been increasing every year since 2015, when performance statistics began.
Subrogation payments exploded from 3.4 billion won in 2017 to 58.3 billion won in 2018, and this year has exceeded 300 billion won with four months remaining.
This means that the number of landlords who cannot return the deposit deposit to tenants and tenants who cannot return the deposit in time is increasing.
An official from HUG explained, "As the insurance subscription performance increases every year, the amount of subrogation seems to increase naturally."
The amount of jeonse deposit return guarantee insurance issued (number of households) and guarantee accident amount (number of households) last year was KRW 30,664 billion (15,6995 households) and KRW 342.4 billion (1,630 households), respectively. It's been a yearly maximum since launch.
This year, until last month, the record is 22.91 trillion won (112,495 households) and 3254 billion won (1,654 households), respectively, which is also expected to reach the annual maximum.
Seong-Hwan Kim, an associate researcher at the Korea Institute of Construction Industry, said, "As disputes between landlords and tenants are expected to increase in the future, the demand for cheonsei deposit return guarantee insurance will increase further," Said.
Deputy Research Fellow Kim explained, "If the trading market turns to a downtrend, there is a concern that there will be an increase in accidents where the jeonse deposit cannot be returned to tenants in time, mainly by landlords who made gap investments through cheonsei."
Meanwhile, in order to strengthen the security of the tenant's deposit, HUG subdivided the deposit return guarantee rate from the previous 2 phases to 18 phases, and improved the tenant registration requirements for multi-family and multi-family houses, which had been difficult to sign up for guarantees, and began implementing it from today.