Jeonse Deposit Return Guarantee: Eligibility, Costs and Why Applications Fail
What the 90% jeonse ratio and 126% of assessed price rules mean, how to check if your deposit is insurable, when to apply, how fees are calculated and the most common reasons for refusal.
Written as of October 2026. Guarantors change their eligibility rules, fee rates and valuation methods often, so always confirm on official sites such as the Korea Housing & Urban Guarantee Corporation (HUG) and the Korea Housing Finance Corporation (HF) before applying. This is general information.
What a deposit return guarantee does
In a jeonse (전세) lease, a tenant hands the landlord a large lump-sum deposit instead of paying monthly rent and expects it back in full at the end. A jeonse deposit return guarantee covers the case where the landlord fails to repay: the guarantor pays your deposit back for the landlord and then pursues the landlord for reimbursement. You recover your money without waiting for an auction or filing a lawsuit, which makes it the single strongest safeguard in a jeonse contract.
There are three main guarantors.
| Guarantor | Type | Notes |
|---|---|---|
| HUG (Korea Housing & Urban Guarantee Corporation) | Public | The most widely used deposit return guarantee |
| HF (Korea Housing Finance Corporation) | Public | Often used alongside its jeonse loan guarantees |
| SGI Seoul Guarantee | Private | Deposit protection insurance with different rules and fee structure |
All three repay your deposit if the landlord defaults, but deposit caps, eligible home types, fees and application windows differ. A refusal from one does not always mean a refusal from all, so compare.
The core rule: within 90% of the home's value
For public guarantees, the key test is that (senior debt + your deposit) must not exceed 90% of the home's value. Our jeonse safety check estimates eligibility on the same principle.
- Jeonse ratio (deposit ÷ home value) of 90% or less
- Senior mortgage maximum amounts + earlier tenants' deposits + your deposit no more than 90% of the home's value
- No encumbrances on the register, such as provisional seizures, injunctions or auction records
- Deposit within the cap: for HUG, up to ₩700 million in the Seoul metropolitan area and ₩500 million elsewhere (our tool simplifies this to a ₩700 million cap)
How the home's value is set
For apartments with market data, guarantors use KB or Korea Real Estate Board prices, or actual sale prices. For villas and multi-unit homes without market data, the value is usually 140% of the official assessed price. Multiply by 90% and the deposit cap becomes 126% of the assessed price. Appraisals are accepted only in limited cases these days.
Example 1: an apartment
An apartment valued at ₩400 million with a ₩60 million maximum-secured mortgage in section B of the register: the largest insurable deposit is ₩400 million × 90% − ₩60 million = ₩300 million. A ₩320 million deposit would push the burden ratio to 95% and is likely to be refused.
Example 2: a villa
A villa with an assessed price of ₩150 million is valued at ₩150 million × 140% = ₩210 million, so the largest insurable deposit is 90% of that, ₩189 million (126% of the assessed price). A ₩190 million deposit could be refused over a mere ₩1 million difference. Look up the assessed price on Realty Price before you sign.
When to apply
Windows differ by guarantor. For HUG, the basic rule is that you can apply until half of the lease term has passed, counted from the later of your final payment date and move-in report date. The practical rule is simpler: apply right after moving in.
- Applications require opposability and a fixed-date stamp (확정일자, an official date stamp on your lease), so complete your move-in report and stamp on moving day. See the move-in report and fixed date guide.
- Over time, prices may fall below the threshold, or a seizure against the landlord may appear and block your application.
- Before signing, add a clause stating the contract is void if the guarantee is refused. It gives you grounds to get your down payment back.
Costs: the fee and the refund program
The fee is roughly deposit × annual fee rate × guarantee period. Annual rates are in the low tenths of a percent and vary with home type, deposit size and debt ratio, so check the exact amount on the guarantor's fee calculator.
For example, assuming an annual rate of 0.13%, a ₩200 million deposit on a two-year lease costs ₩200 million × 0.13% × 2 = about ₩520,000.
The jeonse guarantee fee refund run by local governments and the Ministry of Land can return up to ₩400,000. As of October 2026, our site uses these conditions:
| Group | Annual income limit | Refund |
|---|---|---|
| Youth (ages 19–39) | Up to ₩50 million | Full fee, up to ₩400,000 |
| Newlyweds (married up to 7 years) | Up to ₩75 million | Full fee, up to ₩400,000 |
| Others | Up to ₩60 million | 90% of the fee, up to ₩400,000 |
In all cases you must be a homeless household (owning no home) with a deposit of ₩300 million or less, and you apply for the refund after buying the guarantee. Details vary slightly by local government, so enter your profile on our support finder and apply through Gov24.
Common reasons for refusal
- Jeonse or burden ratio above 90%. The most common reason, especially for new-build villas with unclear prices.
- Commercial-use or illegal buildings. Units approved for non-residential use but rented as studios. Check the building register in advance.
- Encumbrances on the register. Provisional seizures, injunctions, seizures or auction records block applications.
- Missing opposability or fixed date. You did not file the move-in report or moved your registration away.
- Trust-registered homes without consent. Without lease consent from the trust company and priority beneficiary, you will be refused.
- Unverifiable earlier deposits in multi-family houses. If earlier tenants' deposits cannot be documented, screening stalls.
- Landlord problems. A landlord with past guarantee defaults or flagged as high-risk may be refused.
- Missed window or deposit over the cap.
Steps and documents
- Before signing: calculate eligibility from the home's value and senior debt. Our guide on how to read the property register shows where to find the numbers.
- Moving day: file the move-in report and get the fixed date.
- Right after: apply through the guarantor's app, website or partner bank.
- Typical documents: the stamped lease, resident registration record (or residence certificate for foreigners), proof of deposit payment, documents on earlier deposits for multi-family houses, and consents for trust-registered homes.
- After screening, the certificate is issued and you pay the fee; then apply for the fee refund if eligible.
If your deposit is not returned at the end of the lease, follow the guarantor's instructions to file a claim; steps such as a lease registration order may be required. To reduce risk from the very start, also run through our jeonse fraud prevention checklist.
Frequently asked questions
Q. If my deposit exceeds 126% of the assessed price, am I always refused?
That rule applies when a home without market data is valued at 140% of its assessed price. Apartments with market prices use those instead, and rules vary by guarantor and product, so confirm before applying.
Q. How long after signing can I buy the guarantee?
For HUG, the basic window runs until half the lease term has passed, counted from the later of the final payment and move-in report. Price drops or seizures can block you, so apply right after moving in.
Q. How much of the guarantee fee can I get back?
Youth and newlyweds can get the full fee back, others 90%, up to ₩400,000. You must own no home and have a deposit of ₩300 million or less; check on the support finder.
Tools for this topic
This article is general information, not legal or tax advice. Rules change, so confirm with official sources or a professional before you sign or apply.