A view of apartment complexes in Hwaseong, Gyeonggi Province, June 30 / Yonhap As a wave of scams exploiting Korea’s unique “jeonse” rental system has left tens of thousands of tenants at risk, Gyeonggi Provincial Government is urging the central government to extend state assistance to foreign residents who are living in Korea legally, according to officials Monday.
Under the jeonse system, tenants pay a large lump-sum deposit to their landlord instead of monthly rent.
For decades, it was a relatively low-risk way to secure a home, while giving landlords access to a large pool of capital.
But as the housing market became more volatile, it emerged as a major source of risk.
When landlords fail to return deposits, whether due to fraud or sharp decline in property values, tenants can be left with losses running into hundreds of millions of won.
