MoneyLog｜부동산·경제 인사이트

Recently, the term “jeonse fraud” frequently appears in the news in Korea.

Many tenants have lost hundreds of thousands of dollars in security deposits, which raises a simple question:
Why did this keep happening?

In many cases, the problem came from a very small time gap in the law.
Even if a tenant reported their move-in on the same day, their legal protection (opposability) only started at midnight the next day.

However, a mortgage registered by a bank becomes effective immediately upon registration.
Some landlords exploited this loophole by taking out loans on the same day the tenant moved in.

As a result, the tenant’s deposit suddenly became a lower-priority claim.

To close this loophole, the government recently announced new anti-jeonse-fraud measures.
The key change is simple:

Tenant protection will start immediately after move-in registration.

In addition, the government plans to strengthen the Safe Jeonse App information service and enhance the disclosure obligations of real estate agents.

In this article, we will explain what these policy changes mean and how they affect real jeonse contracts.

The most important change in the new anti-jeonse-fraud policy is that tenant protection will begin immediately after move-in registration.

Previously, tenants did not receive legal protection right away. The protection only started at midnight of the next day after the move-in report.

Because of this one-day gap, some landlords exploited the situation by taking out loans or registering mortgages on the same day.

Under the new rule, the protection will start instantly once the move-in registration is completed.

This change significantly reduces the risk of sudden mortgage registrations that could push the tenant’s deposit into a lower priority position.

Many jeonse fraud cases occurred because of a legal timing gap between move-in registration and mortgage registration.

A tenant’s legal protection only began at midnight of the next day after the move-in report.
However, a mortgage registered by a bank becomes effective immediately.

Some landlords exploited this timing gap.

Example scenario:

① Morning – Tenant signs a lease and moves in
② Afternoon – Tenant completes move-in registration
③ Evening – Landlord secretly takes out a loan
④ Mortgage is registered immediately
⑤ Midnight – Tenant protection finally begins

In this case, the bank’s mortgage becomes a higher priority claim, and the tenant’s deposit may be at risk if the property goes to auction.

This loophole is exactly what the government aims to eliminate with the new policy allowing immediate tenant protection.

Before signing a jeonse contract, tenants often worry about whether the property is financially safe.

Checking property records can be complicated, and information about prior deposits or tax arrears is not always easy to obtain.

To address this issue, the Korean government and the Housing & Urban Guarantee Corporation (HUG) launched the Safe Jeonse App.

This app allows tenants to check essential housing information directly on their smartphone before signing a lease.

Information available through the app may include:

• Key information from the property registry
• Status of confirmed dates
• Resident registration data
• Prior tenant deposit amounts
• Tax arrears of the landlord

Using this information in advance can significantly reduce the risk of jeonse fraud.

The new anti-jeonse-fraud measures also strengthen the disclosure duties of licensed real estate agents.

In the past, many tenants signed contracts without fully understanding important information about the property.
Some details were difficult for tenants to verify on their own.

These include:

• The size of prior tenant deposits
• Confirmed date status of other tenants
• Existing mortgage loans on the property
• Possible tax arrears of the landlord

Under the strengthened rules, real estate agents are expected to check these details and clearly explain them to tenants before the contract is signed.

This change aims to improve transparency in the rental market and reduce the risk of jeonse fraud.

On March 10, 2026, the Korean government announced new anti-jeonse fraud measures aimed at strengthening tenant protection.

One of the key proposals is to allow tenant protection (opposability) to start immediately after move-in registration.

However, this change requires an amendment to the Housing Lease Protection Act.
Under the current law, tenant protection begins at midnight of the day after registration.

Because legal revision is required, the exact implementation date has not yet been finalized and will depend on the legislative process.

Until the law is changed, tenants should still secure protection by completing move-in registration and obtaining a confirmed date as quickly as possible.

Even with stronger anti-fraud measures, the most important step is still checking the property carefully before signing a lease.

Here are key things tenants should verify:

• Check the property registry for mortgages or liens
• Confirm the amount of prior tenant deposits
• Review resident registration information
• Check confirmed date status
• Use the Safe Jeonse App to assess risks
• Confirm eligibility for deposit guarantee insurance

For multi-unit houses, the amount of prior deposits can significantly affect the possibility of recovering your deposit if the property is auctioned.

The new anti-jeonse-fraud policy focuses on improving transparency and strengthening protection for tenants.

Three key points to remember:

1. Immediate tenant protection after move-in registration is being introduced.
2. The Safe Jeonse App helps tenants check important housing information before signing a lease.
3. Real estate agents will have stronger obligations to disclose key information.

Although these measures strengthen tenant protection, careful verification before signing a contract remains the most effective way to protect your deposit.