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.