Do You Need Jeonse Deposit Return Guarantee Insurance?
Jeonse is a uniquely Korean rental system where tenants pay a large lump-sum deposit instead of monthly rent, and get the full deposit back when the lease ends. Jeonse deposit return guarantee insurance protects you if the landlord can't repay that deposit — an agency like HUG, HF, or SGI Seoul Guarantee steps in and pays it back on the landlord's behalf. Demand for this insurance has grown as jeonse fraud and non-return incidents have made headlines in recent years.
The key metric for deciding whether you need it is the jeonse-to-value ratio — your deposit divided by the home's market value. The higher this ratio, the smaller a price decline it takes for the sale price to fall below your deposit, a scenario known as a "deposit trap" (kkangtong jeonse). If there's also an existing mortgage or lien on the property, the real risk is higher still, so it's worth looking at your deposit plus any senior liens as a share of market value.
This calculator takes your deposit, the home's market value, any senior liens, and your lease term to compute your ratio and risk level, along with an estimated premium based on a typical 0.128% annual rate. Actual premium rates vary by housing type and guarantee agency, so check HUG's or SGI Seoul Guarantee's website for the exact figure before applying.
Frequently Asked Questions
It's a Korean insurance product where an agency such as HUG, HF, or SGI pays back your jeonse deposit if your landlord fails to return it when the lease ends.
The higher your deposit is relative to the home's market value, the smaller a price drop it takes for the sale price to fall below your deposit — raising the risk you won't get it all back even at auction.
It's typically paid by the tenant. Some local governments offer partial subsidies depending on your situation, so it's worth checking local support programs too.