About Jeonse Deposit Guarantee Insurance
Jeonse is a Korean rental model where a tenant pays a large deposit (typically 60โ80% of property value) and lives rent-free. At lease end, the full deposit is returned. Deposit guarantee insurance protects tenants from landlord insolvency.
| Insurer | Housing Type | Annual Rate |
|---|---|---|
| HUG | Apartment | 0.128% |
| HUG | Other | 0.154% |
| SGI | All types | 0.192% |
Actual premiums may vary based on credit profile, deposit-to-value ratio, and insurer eligibility criteria. Confirm current rates with HUG or SGI directly.
HUG's rate is lower than SGI's because HUG is a public agency backed by government policy funding, allowing it to price coverage below pure actuarial cost โ part of the risk is absorbed by public finances. SGI, a private insurer, prices strictly on actuarial risk (the landlord's probability of default). Within HUG itself, apartments carry a lower rate than other housing types because market values are transparent and collateral risk is lower, so the guarantor's estimated loss probability is smaller.
Frequently Asked Questions
It is strongly recommended but not legally required. Following a wave of jeonse fraud cases in Korea, tenants are advised to purchase deposit guarantee insurance before signing a lease.
The tenant (lessee) pays the insurance premium. In some cases, landlords may cover premiums under special HUG landlord guarantee programs.