HUG to Launch Villa Market Price Data Service, Enhance Fraud Prevention Measures

The Housing & Urban Guarantee Corporation (HUG) is set to launch a groundbreaking villa market price data service by year's end, a move poised to significantly alleviate information asymmetry in the non-apartment housing sector. HUG President Choi In-ho announced this initiative during his 100-day press conference, emphasizing its role in supporting citizens and protecting vulnerable housing occupants.

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We aim to provide experiential services by offering villa market prices, which have been in an information blind spot.

For too long, the market for villas, multi-family homes, and row houses has been a blind spot for reliable price information, unlike the more transparent apartment market. HUG's new service will combine its appraisal data with real transaction information to provide real-time, regularly updated estimates of appropriate market prices based on region and building age. This data-driven approach is expected to empower consumers and foster a healthier market environment.

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We will provide villa, multi-family, and row house prices, which are difficult to confirm with reliable statistics unlike apartments, to protect low-income individuals and the vulnerable.

Beyond price transparency, HUG is doubling down on its efforts to combat 'Jeonse' (lump-sum key money) fraud. The 'Ansim Jeonse App' will be upgraded to offer integrated information from six institutions, utilizing AI to assess the safety of rental properties and provide comprehensive data to tenants before they sign contracts. Furthermore, HUG is pushing for a crucial policy change: shifting the deposit guarantee screening from after the final payment to before the initial deposit is made. This 'pre-rental deposit screening' is anticipated to be a powerful preventative measure against fraudulent transactions.

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The goal is to provide objective indicators through data such as HUG's market price, average deposit amount, and prior lien amount to create a sound market.

From a South Korean perspective, as covered by The Hankyoreh, these initiatives are particularly vital given the recent surge in 'Jeonse' fraud cases that have devastated many households. The lack of accessible, reliable data has been a major contributing factor, leaving many, especially young people and those with limited resources, vulnerable to exploitation. HUG's proactive measures, including the data service and enhanced fraud prevention tools, are seen as essential steps toward restoring trust and stability in the housing market. The commitment to providing 'Dundeun Jeonse Housing' – publicly rented homes acquired by HUG after compensating victims of fraud – further demonstrates a comprehensive approach to addressing the fallout from these scams and supporting those most affected.

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We will provide one-stop information through the connection of six institutions.