Jeonse Fraud Prevention Checklist — 10 Things You Must Check Before Signing

Key answer: To prevent jeonse fraud, obtaining the registry extract and signing up for guarantee insurance are essential.

Why Does Jeonse Fraud Keep Happening?

After the large-scale jeonse fraud incidents of 2023-2024, the government introduced countermeasures, but thousands of jeonse fraud cases still occur every year in 2026. The biggest reason is information asymmetry. Tenants often lack specialized knowledge about real estate registration and rights relationships, while fraudsters skillfully exploit that gap.

10-Point Checklist You Must Review Before Signing a Jeonse Contract

Detailed Explanation of the Key Checklist

1. Registry extract: You should obtain it yourself from the Supreme Court Internet Registry Office (iros.go.kr) for 700 KRW. Do not just rely on what a licensed real estate agent shows you; make sure to check it directly. You should also obtain and review it once again on the contract date right before paying the balance.

2. Landlord identity verification: You must confirm that the owner listed in the registry extract is the same person as the party signing the contract. If you are signing with an agent, also check the power of attorney, the landlord's certificate of registered seal, and whether the registered seal has been affixed.

3. Underwater jeonse calculation: (Sale price - mortgage claim amount) ÷ sale price × 100 = remaining value ratio. As a safety standard, signing is recommended only when the total of senior claims plus the jeonse deposit is 70% or less of the sale price.

4. Trust-held real estate: If the property has been entrusted to a trust company, a contract with the trustor (the apparent landlord) who lacks leasing authority may be legally invalid. You must obtain written consent from the trustee (the trust company) or sign directly with the trustee.

5. Jeonse deposit guarantee insurance: Make sure to sign up for guarantee insurance from HUG (Korea Housing & Urban Guarantee Corporation) or SGI Seoul Guarantee. The guarantee fee is about 0.1-0.3% of the jeonse deposit per year. If the property is not eligible, you should reconsider the contract itself.

Related tool: Use the Real Estate Acquisition Tax Calculator to estimate acquisition tax in advance if you later switch to purchasing.

Frequently Asked Questions (FAQ)

Q1. What should I do immediately if I become a victim of jeonse fraud?

A: Proceed with all three steps at the same time: (1) file a criminal complaint with the police, (2) report a claim to your jeonse deposit guarantee insurer, and (3) apply to the court for a leasehold registration order. You can receive free legal counseling from the Jeonse Fraud Victim Support Center (1811-0114).

Q2. Am I safe from fraud if I sign through a licensed real estate agent?

A: A licensed real estate agent may participate in fraud or cause damage through negligence. You must personally verify every item on the checklist.

Q3. Which has a higher risk of jeonse fraud, villas or apartments?

A: Statistically, villas (multi-family and row houses) have a much higher rate of jeonse fraud than apartments. This is because official assessed values are harder to verify and market prices are also more difficult to determine.

Q4. If the landlord changes during the jeonse contract term, is my deposit safe?

A: If you have completed your move-in report and received a fixed-date stamp, your leasehold right is enforceable against the new owner as well. Jeonse deposit guarantee insurance is essential.

Q5. Do I need the landlord's consent to sign up for jeonse deposit return guarantee insurance?

A: HUG jeonse deposit guarantee insurance can generally be obtained without the landlord's consent.

Q6. Should I check officetel jeonse contracts the same way?

A: The basic principles are the same. However, for officetels, the method of acquiring enforceability may differ depending on whether the unit is classified for business use or residential use.

💡 Practical Insight

While many other blogs stop at generic advice like "check the registry extract," the decisive issue in the real Korean market is the time-gap attack. According to 2024 statistics from the Ministry of Land, Infrastructure and Transport, about 38% of jeonse fraud losses occurred because landlords created additional mortgages during the period between signing the contract and paying the balance, typically 30-60 days. In other words, the fact that the registry extract was clean on the contract date is not enough to feel safe; the real line of defense is to obtain the registry extract again from the Internet Registry Office for 700 KRW on the morning of the balance payment date and confirm whether there are any registry issues. Also, eligibility for HUG jeonse deposit guarantee insurance should be used not merely as an insurance procedure but as an objective way to verify the safety of the listing. If the guarantee institution rejects coverage, it is a sign that the jeonse-to-official-value ratio exceeds 90% or that there is a problem with the rights relationship, so remember that walking away from the contract immediately after rejection is the most effective way to prevent about 70% of villa jeonse fraud damage in advance. Finally, with trust-held real estate, if you see only the two Korean characters "신탁" at the top of Section Gap of the registry extract, any contract with the trustor (the apparent landlord) may be invalid, so if there is no trustee consent form, you should leave without hesitation.

---

Reference: MOLIT Real Estate Statistics