[Housing Talk] Requirements, support measures for jeonse fraud victims
Social affairsAug 23, 2023
Jeonse refers to a system unique to Korea in which a lessee gives a lessor a large refundable deposit instead of paying monthly rent. Under a typical two-year jeonse contract, a lessor would return the deposit upon expiration of the contract. If the expected interest on the deposit is less than the monthly rent, as is often the case, a jeonse contract can be financially advantageous to the lessee. However, there are many cases of jeonse fraud, where scammers usually buy houses with money from th