Summary
A jeonse tenant in South Korea pays a large lump-sum deposit instead of monthly rent and gets it back when the lease ends. The Housing Lease Protection Act gives the tenant rights against a new owner from the day after they take possession and complete resident registration, which counts as made when the move-in report is filed. With a fixed date (확정일자) on the contract as well, the tenant can be repaid from an auction ahead of later creditors, according to the government's English translation of the Act.
Tenants can also buy a deposit return guarantee from the Korea Housing & Urban Guarantee Corporation (HUG), which pays the deposit if the landlord does not. HUG accepts deposits of up to KRW 700 million in the capital region and KRW 500 million elsewhere.
What this means for tenants in South Korea
Three steps that protect the deposit
| Step | What it gives you | Legal basis |
|---|---|---|
| Move in and file the move-in report | The lease binds a new owner from the next day | Act, Article 3 |
| Get a fixed date on the contract | Priority repayment from an auction or public sale over junior creditors | Act, Article 3-2 |
| Take out a deposit return guarantee | HUG repays the deposit if the landlord does not | HUG product terms |
Sources: Housing Lease Protection Act (English translation); HUG.
A new owner of the home steps into the landlord's position, so the lease and the deposit obligation pass with the sale, Article 3 says. A lease with no fixed term, or a term under two years, is treated as two years, and the lease continues until the deposit is repaid (Article 4).
Small deposits
Tenants with smaller deposits can recover a set amount ahead of even secured creditors, provided they moved in and filed the move-in report before an auction was registered, under Article 8. The qualifying deposits and amounts are set by Presidential Decree and are capped at half the value of the home.
HUG's deposit return guarantee
HUG's guarantee covers apartments, residential officetels, multi-family and row houses, detached and multi-household houses, and senior welfare housing, HUG says. You can guarantee all or part of the deposit, within the caps above. The fee is the guaranteed amount × a rate of 0.115% to 0.154% a year, depending on the deposit, home type and debt ratio, pro-rated for the lease term. Applying online or paying in one lump sum each earns a 3% discount.
You must apply before half the lease term has passed, counted from the later of the balance payment date and the move-in report. HUG asks for the contract with its fixed date, a record of households registered at the address, proof that you paid the deposit, and your resident registration. The guarantee runs until one month after the lease ends. As of October 2026, HUG says applications for apartments and officetels are temporarily suspended because of a surge in demand, except where the landlord is a company.
Illustration: a KRW 300 million deposit
Illustration only. A tenant guarantees a KRW 300 million deposit on a two-year lease. At the lowest rate of 0.115% a year, the fee is about KRW 690,000 for the two years before discounts; at 0.154% it is about KRW 924,000.
FAQ
When does a jeonse tenant's protection start? From the day after the tenant moves in and files the move-in report. What does the fixed date add? Priority repayment of the deposit from an auction or public sale ahead of junior creditors. How much can HUG guarantee? Up to KRW 700 million in the capital region and KRW 500 million elsewhere.
Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Check the property register for mortgages and seizures before you sign, and compare the debts with the home's value.
- File the move-in report and get the fixed date on the day you move in.
- Apply for a deposit return guarantee well before half the lease term has passed.
- Ask a verified lawyer to review the lease: proprkey.com/en/pros?segment=legalFinance
- Compare homes to rent: proprkey.com/en/properties