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.
Frequently Asked Questions
Is this insurance mandatory?
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.
Who pays the premium?
The tenant (lessee) pays the insurance premium. In some cases, landlords may cover premiums under special HUG landlord guarantee programs.