‘Accident amount’ in the first half of the year: 340.7 billion won
Warning of ‘Kang Tong Charter’ in the outskirts of the metropolitan area
In the first half of this year, it was found that the deposit for jeonse, which the landlord did not return to the tenant even after the contract expired, exceeded 340 billion won. This is an all-time high for the first half of the year. As the so-called ‘Kang-tong Jeonse’ phenomenon, in which the price of jeonse exceeds the sale price, is intensifying, it is pointed out that it is necessary to pay attention to the accident of the deposit.
According to the Housing and Urban Guarantee Corporation (HUG) on the 5th, the total amount of Jeonse deposit return guarantee accidents in the first half of this year (January to June) totaled 340.7 billion won. Based on the amount of accidents in the first half of the year, it is the largest ever.
Jeonse Deposit Return Guarantee refers to a system in which HUG pays a deposit to the tenant and then claims the landlord by exercising the right to indemnify when the landlord does not return the deposit after the contract expires. It was first released in September 2013.
The amount of deposits for Jeonse deposits is hitting an all-time high every year. It increased from 344.2 billion won in 2019 to 468.2 billion won in 2020 and 579 billion won last year. It is predicted that the first half of this year will also break the record high again as it accounted for 58.8% of the total accidents last year.
If you subscribe to HUG’s Jeonse Deposit Return Guarantee product, HUG will return the Jeonse Deposit to the tenant instead of the landlord in case of an accident. Generally, when a guarantee accident is received, subrogation is made through a guarantee performance review, so there is a slight difference between the amount of the accident and the amount of subrogation.
The amount of subrogation payments in the first half of this year was estimated at 294.6 billion won. As the number of accidents increases, the amount of subrogation reimbursement is also increasing every year to 283.6 billion won in 2019, 441.5 billion won in 2020, and 504 billion won last year.
A HUG official said, “During a period of decline in house prices, it is recommended that you subscribe to the rental contract because there is a possibility that the house price will fall below the jeonse price. You have to check the conditions for joining,” he said.
Reporter Eunji Shim summit@hankyung.com
