What is Jeonse?

Jeonse (전세) is a lease structure where the tenant (lessee) pays a large lump-sum deposit to the landlord at the start of the contract. There is usually little or no monthly rent. At the end of the lease (commonly 2 years), the landlord returns the full deposit, assuming no damage or unpaid utilities.

In practice, the landlord uses the deposit as financing (e.g., to pay down a mortgage) and expects to return it at renewal or when a new tenant’s deposit arrives. Because the deposit can be very large relative to the property value, Jeonse carries different risks than typical rent.

How Jeonse works (timeline)

1. Search & due diligence: identify candidate homes and obtain the property register (등기부등본) to check ownership and existing liens.
2. Offer & contract: agree on deposit amount, term (often 2 years), move-in date, and responsibilities (repairs, appliances).
3. Protection steps (critical):
   • Fixed-date stamp (확정일자) on the lease at a community center or court.
   • Move-in report (전입신고) after you take possession.
   • Optionally, register a jeonse right (전세권 설정) on the property for stronger priority in case of foreclosure.
4. Deposit transfer: transfer the agreed amount; keep receipts and ensure it matches the contract.
5. During tenancy: no (or minimal) monthly rent; follow maintenance terms and keep proofs of payments.
6. End/renewal: schedule handover; the landlord returns the deposit. If there’s difficulty, protections or insurance (if enrolled) may apply.

Note: Procedures and documents vary by city/district and by property type. Always verify locally.

Typical deposits & what drives them

Jeonse deposits are commonly a large share of the market value of the unit. The exact level depends on:

• City/district, school district, and transit access
• Unit size, age/condition, and floor
• Housing market cycle (jeonse-price ratio) and interest rates
• Landlord financing—existing loans reduce safe headroom for your deposit

Rule of thumb: deposits can be a substantial fraction of the property’s price; always assess whether the landlord’s equity covers your deposit after all liens. Ask the agent for written confirmation of existing loans and calculate remaining equity.

Key risks & how to reduce them

• Charter fraud / over-leveraged owner: the landlord cannot repay your deposit. Reduce: check the property register for mortgages and legal claims; prefer properties where owner equity comfortably exceeds your deposit.
• Priority in foreclosure: if the home is sold due to default, your recovery depends on priority. Reduce: obtain a fixed-date stamp and file your move-in report promptly; consider registering a jeonse right.
• Sub-leases / unauthorized sales: ensure contract is with the registered owner or an authorized representative.
• Deposit split / staged transfers: clearly record each transfer; avoid paying to third parties not named in the contract.
• Contract ambiguity: spell out appliances, minor repairs, early termination, and handover conditions.

Jeonse deposit insurance (HUG) — overview

The Jeonse deposit return guarantee (commonly via the Housing & Urban Guarantee Corporation, “HUG”) is a program that can reimburse your deposit if the landlord fails to return it, subject to eligibility, limits, and fees.

• What it covers: non-return of the deposit at legal end of tenancy, after required notices/actions.
• Eligibility: depends on tenant status, property type/value, and existing liens/loan-to-value.
• Costs: a premium (fee) paid by the tenant, landlord, or split—varies by risk factors.
• Claims: file within the program’s timelines with required documents; recovery actions are handled by the guarantor.

See our focused guide: Jeonse Deposit Insurance (HUG): Coverage, Limits & How to Apply.

Jeonse vs Wolse (monthly rent)

Checklist for expats

1. Get the property register (ownership, liens, seizure notices) for the specific unit.
2. Confirm the owner’s ID matches the register; if using a proxy, verify the power of attorney.
3. Ask for written disclosure of existing loans and unpaid taxes/fees.
4. Include fixed-date stamp and move-in report steps in your plan.
5. Consider jeonse right registration and/or deposit insurance where eligible.
6. Keep transfer receipts and a copy of the stamped contract.
7. Schedule exit early; align handover and deposit return dates in writing.

Further reading: Jeonse Meaning (simple definition) · Jeonse Deposit Insurance

FAQ

What is Jeonse in one sentence?

A lease where you pay a large refundable deposit instead of monthly rent; the landlord returns it at the end of the term if conditions are met.

How big are Jeonse deposits?

They’re a substantial share of the property value and vary by area, size, and market conditions. Always check the owner’s equity and liens before committing.

What is HUG/Jeonse deposit insurance?

A guarantee program that may reimburse your deposit if it isn’t returned, subject to eligibility, property limits, fees, and proper procedure.

Jeonse vs Wolse — which is better?

Jeonse suits longer stays with available cash; Wolse suits shorter stays or those who prefer lower upfront cost. Compare total cost, risk, and flexibility.

Can foreigners use Jeonse?

Yes in many cases, but requirements vary. You’ll need identification, visa status, and financial documentation; some programs or properties may have restrictions.

Glossary

Fixed-date stamp (확정일자)

Official date stamp on the contract that helps establish priority for deposit recovery.

Move-in report (전입신고)

Address registration after you take possession; required for certain protections.

Jeonse right registration (전세권 설정)

Optional registration of a real right on the property that can enhance your priority.

Property register (등기부등본)

Official record of ownership and liens for a property.