Improving​ the Jeonse System: A Policy Debate

Event Details:

Date: Wednesday,‍ October 2nd, 10:00 am

Location: Conference Room 5, National Assembly Hall

The jeonse system, a private financial system in Korea, has been a topic ⁢of discussion due to its impact on the rental⁣ market. While it appears to be advantageous to tenants, with no monthly rent burden, it poses significant risks, including ⁢the non-return of security deposits. Landlords,⁣ on​ the ‌other‌ hand, can earn more than their investment amount if ​house prices rise, ⁤without paying interest on the ⁤borrowed deposit.

The recent ‍decline in house prices has led to an increase in jeonse issues, making the jeonse deposit return ‌guarantee insurance a popular topic. However, some scammers have taken advantage of tenants’ trust in this insurance, causing further damage. As a result, the ⁢number of incidents of non-return of deposits has accumulated, and ⁢the amount of return guarantee insurance reimbursement has increased significantly.

The stability of the jeonse system is crucial for the housing⁤ stability of the people. To address these issues, the Citizens’ Coalition for Economic Justice and Representatives Yeom Tae-young, Jeong Jun-ho, Kim Woo-young, and Son Myung-soo are co-hosting a ⁢policy debate to seek ways to protect victims of jeonse fraud and improve the jeonse system, focusing on the return guarantee insurance system.