Special guarantee for tenants unable to move out as landlords fail to find new tenant

- Tenants who register right of lease may get additional loan funds using a special guarantee

Measures have been established to support tenants who are unable to move out into a new home as their lessors fail to return their security deposit even though the lease contract has expired.

On August 6, 2012, the Korea Housing Finance Corporation (KHFC, CEO Seo Jong-dae) announced that it would extend a special guarantee from August 7, 2012 for tenants who are unable to move out into a new home as their landlord fails to return their security deposit after their lease contract has expired.

To be eligible for the special guarantee, tenants must have 50 million won or less in combined annual income with their spouse and have plans to move to another home under a jeonse lease after completing the process for an order of lease registration following termination of the lease contract. Applications for a guarantee can be made after completing lease registration within three months from the end of the lease period. Those who have a reference from the relevant local government can apply for a guarantee after one month has passed.

“We expect that the special guarantee will greatly benefit those who are unable to move to a new home because their security deposit is locked with their landlord,” said a KHFC official.