South Korea to Launch 'Safe Jeonse' App in September to Combat Rental Scams

South Korean renters will soon have a new tool to navigate the complex world of housing leases. Starting in September, the 'Ansim Jeonse' (Safe Jeonse) smartphone application will allow prospective tenants to check the risk of rental scams before signing a contract.

The Ministry of Land, Infrastructure and Transport announced that the app will consolidate over 50 types of scattered information related to jeonse (lump-sum deposit) contracts. This integrated data will enable users to assess a property's "housing risk" and the "landlord's risk" on a three-tier scale: safe, caution, or danger. The housing risk assessment will compare market prices with the deposit, while the landlord's risk will evaluate their eligibility for deposit insurance, the number of existing policies, tax arrears, and loan delinquency.

Previously, renters had to visit multiple government offices and obtain the landlord's consent to gather information about prior claims on a property, a process often complicated by complex legal jargon. The new app aims to simplify this by providing a comprehensive risk diagnosis based on public records like the property register and confirmed lease dates. The government is also exploring ways to offer this service through popular private real estate platforms.

Furthermore, the Ministry plans to amend the Housing Lease Protection Act to enhance tenant security. A key proposed change is to shift the timing of when tenants gain legal standing to claim their deposit back, from the day after registration to immediately upon contract signing. This, coupled with a system to compare registration and legal standing times down to the second, aims to provide greater protection against deposit loss.

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In September, it will be possible to check the risk of jeonse scams on a smartphone app before signing a jeonse contract by checking information such as the priority deposit, whether collateral is set, and the landlord's tax arrears.