“Deposit Return Guarantee Insurance on the Rise in Jeju Amidst Growing Housing Concerns”

[한라일보] While damages from charter fraud are spreading across the country, in Jeju, where the share of ‘Yonsei’, which pays a year’s rent in advance, is much higher, group fraud has not occurred, but guarantee accidents in which landlords do not get the deposit back on time are on the rise. As a result, an increasing number of people are taking out deposit return guarantee insurance to protect deposits.

As a result of checking with the Housing and Urban Guarantee Corporation (HUG) on the 16th, the amount of deposit return guarantee insurance (guarantee performance) in the province until April this year was counted as 475 cases and 91.4 billion won. 7 cases in 2016, 1,337.5 billion won, but in 2017, 42 cases, 7,681.25 million won ▷ 2018, 110 cases, 19,516.5 million won 69.8 million won ▷ 897 cases in 2021, 160.3 billion won ▷ 845 cases in 2022, 158 billion won, an increasing trend every year.

Jeonse guarantee insurance is a guarantee product that the lessee subscribes to HUG to keep the deposit. If the deposit is not returned within one month after the end or cancellation of the contract, or if the house goes through an auction or public sale during the contract period, the guarantor, HUG, pays the deposit instead, and later collects it by claiming the right to indemnity from the landlord. In the metropolitan area, less than 700 million won, and in non-metropolitan areas, less than 500 million won.

A tenant who lives in a row house on a jeonse basis said, “For the common people who do not have a house, the jeonse deposit is like all property, but recently, as we have frequently encountered cases of group jeonse fraud in other regions, I am really worried about whether I should subscribe to the jeonse deposit return guarantee, which I had not thought of before. “he said.

As such, the increase in the number of deposit return guarantee insurance subscriptions is largely related to the increase in cases where deposits are not returned on time.

Until April of this year, there were 22 cases of non-return of deposits on deposits in Jeju, with a total of 4.135 billion won. This is a scale that far exceeds the guarantee accident (9 cases, 1.2 billion won) in the first half of last year. Including the cases of those who did not subscribe to the jeonse guarantee insurance, there may be more cases of damages in which the deposit is not returned on time.

Monthly jeonse deposit accidents are ▷January 9 cases, 1.44 billion won ▷February 4 cases, 795 million won ▷March 3 cases, 770 million won ▷April 6 cases, 1.13 billion won. By region, there were 4 and 18 cases in Jeju-si and Seogwipo-si, respectively.

What is as important as the number and amount of guarantee accidents is the guarantee accident rate (the ratio of the guarantee amount to the guarantee amount at which the guarantee period expires at that time), and Jeju has a higher accident rate than the rest of the country. In January, the accident rate was 13.5%, exceeding the national average (5.8%) and the highest among 17 cities and provinces. In February (4.0%) and March (4.9%), it fell to the 6th and 5th levels, respectively, and in April, the accident rate was 8.4%, which was the second highest nationwide after Incheon (15.5%). #Jeju #Charter scam #Cheonse deposit return guarantee insurance