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“What if my landlord can’t return the deposit?” Even with insurance, many tenants still wonder if they’ll really be protected when problems arise. And sometimes, tenants move out early or change houses, meaning they’ll need a refund of unused premiums.

In this article, updated as of September 2025, we’ll cover the actual scope of coverage, how disputes are resolved in practice, and how to handle cancellations and refunds — all with real-life examples. By the end, you’ll feel reassured knowing exactly how your deposit can be protected in any situation.

1. Detailed Coverage Explanation
2. Dispute Resolution Process
3. Real Dispute Case Studies
4. Early Termination Conditions
5. Refund Procedures
6. Frequently Asked Questions (Q&A)
7. Quick Summary

Jeonse Deposit Insurance protects tenants when the landlord fails to return the deposit. The institution reimburses the tenant, but not all situations are covered.

Covered

• ① Landlord fails to return deposit at lease end
• ② Landlord bankruptcy or rehabilitation
• ③ Property foreclosure or auction makes repayment impossible
• ④ Court ruling confirms tenant’s right to repayment

Not Covered

• ① Tenant without resident registration or fixed-date stamp
• ② Living in unauthorized buildings not eligible for coverage
• ③ Deposit exceeding limits (e.g., over ₩700M in Seoul metro)
• ④ Late interest, penalties, or special clauses outside principal

If the landlord refuses to return the deposit after the lease ends, the tenant can file a claim with the insurance provider. The process typically follows these steps:

1. ① File a claim – report non-return to HUG, HF, or SGI
2. ② Submit documents – lease, resident register, fixed-date proof, property registry
3. ③ Review – provider checks landlord’s default
4. ④ Payout – tenant receives deposit principal
5. ⑤ Recovery – provider pursues reimbursement from landlord

In short, tenants only need to report and provide documents. The provider handles the rest, including recovery from the landlord.

Case ① Landlord Disappearance

Tenant A’s landlord vanished after lease expiration without returning the deposit. HUG paid the full deposit within 2 months. 👉 Lesson: Insurance protects even if landlord disappears.

Case ② Senior Mortgage Issue

Tenant B’s property had a senior mortgage from a bank. At auction, the bank was repaid first, leaving the tenant exposed. HUG reimbursed over 80% of the deposit. 👉 Lesson: Check the registry, insurance is the safety net.

Case ③ Early Termination Refund

Tenant C moved out halfway through a 1-year lease. By canceling the insurance, they received a refund for the remaining 6 months. 👉 Lesson: Refund is possible on early cancellation.

Jeonse Deposit Insurance can be canceled mid-term if it’s no longer needed — such as moving out, early termination of the lease, or landlord returning the deposit.

Reasons for Cancellation

• ① Tenant moves out before lease ends
• ② Lease ends early due to property sale, etc.
• ③ Landlord returns deposit early
• ④ Any other case where purpose of insurance ends

Important Notes

• - Must provide the certificate (original or number) when canceling
• - Early cancellation soon after policy start may reduce refund
• - Cannot cancel while lease is still valid and active

If you cancel mid-term, you can receive a refund for the unused portion of the premium. The refund is usually processed within 2 weeks.

Steps

1. ① Request cancellation – via HUG, HF, or SGI website/branch
2. ② Submit documents – lease termination proof, move-out confirmation, certificate number
3. ③ Calculate refund – total paid minus used months
4. ④ Payment – transferred to tenant’s account (7–14 days)

Calculation Example

• Total premium ₩240,000 for 1 year
• Cancel after 6 months → refund ₩120,000

보증기관은 사고 신고 후 평균 1~3개월 내에 보증금을 지급합니다. 임대인과의 소송은 세입자가 아닌 보증기관이 이어가기 때문에, 세입자는 지급 절차만 마치면 안심할 수 있습니다.

네, 사용하지 않은 기간에 해당하는 보증료는 환급됩니다. 단, 지자체 보조금으로 납부한 금액은 환급 대상에서 제외될 수 있습니다.

네, 보증금이 보증 한도(수도권 7억, 지방 5억)를 초과하거나, 선순위 채권이 많을 경우 일부만 지급될 수 있습니다.

해지 신청일 기준으로 환급액이 계산되며, 보통 7~14일 내 본인 계좌로 지급됩니다.

네, HUG는 가입자가 많아 상대적으로 시간이 더 걸릴 수 있고, HF·SGI는 처리 속도가 조금 더 빠른 편입니다.

Through this Jeonse Deposit Insurance 4-part series, we’ve covered everything from why it’s needed, to provider comparison, application process, coverage, disputes, and even cancellation/refunds. Step by step, it becomes clear that this insurance is the strongest safety net for tenants.

👉 If this guide was helpful, please share it with others. Your support motivates me to keep preparing more practical real estate and finance tips. Thank you, and see you in the next guide! 🙏