The amount of accidents in which landlords do not return deposits to jeonse tenants hit an all-time high last month.
According to the Housing and Urban Guarantee Corporation (HUG), the amount of Jeonse Deposit Return Guarantee Insurance Accidents amounted to KRW 55.4 billion (259 cases) last month, the highest and highest in both the amount and the number of cases on a monthly basis.
The Jeonse Money Return Guarantee Insurance product was first launched in September 2013 and is currently being handled by HUG, a public guarantee institution, Korea Housing Finance Corporation (HF), and SGI Seoul Guarantee, a private guarantee institution.
If the landlord fails to return the Jeonse deposit even after the contract period has expired, these organizations pay the deposit (subrogation) to the subscriber (tenant) instead, and later exercise the right to indemnity and claim the landlord.
The amount of accidents for this product has been increasing every year since 2015, when HUG's performance counting began.
The amount of accidents surged from 3.4 billion won in 2016 to 7.4 billion won in 2017, 79.2 billion won in 2018, 344.2 billion won in 2019, and 468.2 billion won last year. has reached
This is 10.9 billion won more than the amount (295.7 billion won) that occurred up to July of last year, when the annual accident amount reached a record high.