Foreign residents caught in Korea’s jeonse fraud are being left out of some relief measures, even when they are officially recognized as victims. Gyeonggi Province has proposed extending support, including LH purchases of foreclosed homes and financial aid, but the government says some programs are limited by fund rules. Advocates argue local government budgets could still be used, while victims say recovery of lost deposits remains the core problem.
A view of residential neighborhood from the Lotte World Tower in Seoul, Aug. 13 / Yonhap
At the start of 2022, Nan Ming-ji, a 40-year-old with Chinese citizenship, moved with his parents into a home in Ansan, Gyeonggi Province. The family put down a 140 million won ($104,000) deposit — money his parents had saved since arriving in Korea two decades ago.
It was no small sum. But under the country’s distinct “jeonse” system, such large upfront deposits have long been the norm. Instead of paying monthly rent, tenants put down a lump sum that is returned in full when the lease ends. For landlords, the deposits provide access to a large pool of capital they can invest or earn interest on.
In October 2023, Nan’s father found a notice saying their home was being put up for auction. Just weeks later, the family learned that their landlord owned several other buildings in his wife’s and brother-in-law’s names. Those properties, too, had been flagged for auction.
