HF Alleviates Eligibility criteria for its Jeonse Deposit Return Guarantee

- Guarantee limit : KRW500M → KRW700M (Seoul and metropolitan)  KRW300M → KRW500M (Local Areas)

- Guarantee application : before 1/4 of the lease period passes →before 1/2 of the lease period passes.

From application made on Jan 27 and afterward, Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) provides Jeonse deposit return guarantee for up to KRW 700M deposit.

HF announced on Jan 26 that for better tenants protection and residential stability of the low-to-moderate income households, it expands the guarantee limit and application period of its Jeonse deposit return guarantee product*, Jeonse Jikim Guarantee.

* Under the Guarantee, HF pays the deposit to a tenant where a lessor fails to do so deposit when the lease contract expires; in return, HF has an indemnity right and seeks the repayment from the lessor.

From Jan 27, HF increases the guarantee limit from KRW500M to KRW700M in Seoul and metropolitan areas and from KRW300M to KRW500M in local areas. In addition, tenants can apply for the guarantee product before the lease period passes half of the contract period. Previously, the application had to be made before a quarter of the contract period passes.

Accordingly, those who were unable to use the Jeonse deposit return guarantee as their deposit exceeds the previous guarantee limit can now apply for the product, if a half of their lease contract period has not passed. 

CEO Choi said,”We have lowered the threshold of the Jeonse deposit return guarantee for financial inclusion and better protection of low-to-moderate income households and end users. Going forward, HF will continue to take measures for residential stability of low-to-moderate income households with non-homeownership. “

Users of HF Jeonse Guarantee or those plan to use the product can apply for the HF Jeonse deposit return guarantee(Jeonse Jikim Guarantee) at commercial banks.