Jeonse Deposit Return Insurance — HUG vs HF vs SGI Compared

• Deposit cap: KRW 700 million or less in the metropolitan area, KRW 500 million or less in regional areas
• Jeonse-to-sale ratio: 100% or less of the sale price (based on official assessed value)
• Enrollment is denied if senior debt plus deposit exceeds 100% of the property value Coverage and Premium
• Coverage limit: Up to KRW 400 million (combined for married couples)
• Premium: 0.115–0.154% per year (apartments)
• Example: For a KRW 300 million deposit, about KRW 345,000 per year Note: You must enroll before half of the lease term has elapsed. ## HF (Korea Housing Finance Corporation) Eligibility
• Deposit cap: Up to KRW 1 billion (limit can be extended when bundled with MCI/MCG)
• No income requirement Coverage and Premium
• Coverage limit: Up to KRW 1 billion
• Premium: 0.02–0.04% per year (apartments — cheaper than HUG) Note: Some products require a linked bank loan. Premiums are low, but eligibility can be more restrictive. ## SGI (Seoul Guarantee Insurance) Eligibility
• No deposit cap (high-value homes are also eligible)
• More relaxed jeonse-to-sale ratio (up to 90% of sale price) Coverage and Premium
• Premium: 0.183–0.208% per year (highest among the three)
• Processing speed: Fastest (private insurer) Note: Corporate tenants can also enroll. SGI is often the better fit for high-value or special-purpose properties, though officetels may sometimes be excluded. ## Three-Way Comparison Summary | Item | HUG | HF | SGI |

A: You must enroll before half of the lease term has passed (HUG standard). The safest approach is to apply soon after moving in. ### Q2. What happens if the landlord changes after I enroll? A: The new landlord inherits the guarantee obligation. Your enrollment simply remains in place. ### Q3. How do I file a claim if I don't get my deposit back in full? A: You must file a claim with the guarantor within 30 days of the lease end date. The guarantor pays you first, then pursues subrogation against the landlord. ### Q4. Are officetels eligible for jeonse deposit insurance? A: Yes. HUG covers residential officetels, though the premium is higher than it is for apartments. ### Q5. Can I enroll if my lease has already started? A: Yes, as long as at least half of the lease term remains. It is especially important to verify any senior creditor claims before applying. ### Q6. Who pays the premium? A: In principle, the tenant pays. However, the tenant and landlord can split the cost if both parties agree. ## 💡 Practical Insights Many articles simply conclude that "HUG is the safest option," but a real KRW 300 million example shows why the choice is not that simple. HF costs roughly KRW 60,000–120,000 per year, HUG comes in at about KRW 345,000, and SGI is around KRW 540,000–620,000. In other words, SGI can cost 5 to 9 times more than HF. Over a five-year stay, that can mean an extra KRW 2–2.5 million compared with HF. According to the Ministry of Land's 2024 data, jeonse insurance claim payouts total roughly KRW 4.3 trillion per year, while tenants without insurance take an average of 18–24 months to recover their deposits. In my consulting cases, more than 30% of clients could not qualify for HUG alone and had to switch to SGI. The deciding factor was usually whether the jeonse-to-sale ratio exceeded 90% of the official assessed value. A practical workflow is to check the market price first, then confirm the official assessed value through KB Real Estate or the Ministry of Land's actual transaction price disclosure system. If your jeonse-to-sale ratio is above 90%, review HF first and SGI next. Also note that as of May 2024, HUG tightened its jeonse-to-sale ratio threshold from 100% to 90%, so new applicants need to account for that change.