The jeonse deposit return guarantee — insurance that pays a tenant back if a landlord fails to return a lump-sum lease deposit — accepts deposits of up to 700 million won in the capital region (Seoul, Gyeonggi, Incheon) and 500 million won elsewhere. Even inside those caps, the application fails if prior secured claims plus the deposit exceed 90% of the home's appraised value. Of the two conditions, the second is almost always the binding one.
The premium is deposit amount × premium rate × lease term ÷ 365. Rates published by the Korea Housing and Urban Guarantee Corporation (HUG) run from 0.097% to 0.211% per year, varying with deposit size, housing type and debt ratio. For a 300 million won deposit on a two-year lease that means 580,000 to 1,270,000 won in total, or 24,000 to 53,000 won a month.
How large a deposit qualifies — reversing the 90% rule
Screening works on ratios to home value, not on the absolute deposit. As Bankmall summarises, there are two tests: prior secured claims plus the deposit must come to 90% or less of home value, and prior claims alone must be 60% or less. Home value is recognised from a combination of KB market price, Korea Real Estate Board price, the official assessed value and recent transaction prices.
Invert the 90% test and you get the maximum qualifying deposit. The table below multiplies home value by 0.9 and subtracts the mortgage lien registered on the title.
| Home value (100mn won) | No lien (100mn won) | 50mn won lien | 100mn won lien | 60% lien ceiling |
|---|---|---|---|---|
| 3.0 | 2.70 | 2.20 | 1.70 | 1.80 |
| 5.0 | 4.50 | 4.00 | 3.50 | 3.00 |
| 7.0 | 6.30 | 5.80 | 5.30 | 4.20 |
| 10.0 | 7.00 (cap applies) | 7.00 (cap applies) | 7.00 (cap applies) | 6.00 |
The point to read is that a 100 million won lien cuts the qualifying deposit by exactly 100 million won. Because the ratio is additive, a mortgage eats into the deposit ceiling one for one. On a home valued at 500 million won carrying a 100 million won lien, the ceiling is 350 million won — and a tenant who has already signed at 360 million won is not looking at a guarantee problem but at a contract problem. That is why the mortgage figure on the title deed matters before signing.
The 10 billion won row shows the other constraint. The ratio test allows 900 million won, but the capital-region cap of 700 million won binds first. Whichever figure is lower applies.
Approval is decided less by how large the deposit is than by how much money already stands in front of it.
What the premium actually costs over two years
The formula is simple: deposit × rate × days ÷ 365, so a two-year lease costs twice the annual rate. Below, the bottom (0.097%), middle (0.146%) and top (0.211%) of the band are applied to a two-year term.
| Deposit | At 0.097% (won) | At 0.146% (won) | At 0.211% (won) | Middle rate, per month (won) |
|---|---|---|---|---|
| 150mn won | 291,000 | 438,000 | 633,000 | 18,250 |
| 300mn won | 582,000 | 876,000 | 1,266,000 | 36,500 |
| 500mn won | 970,000 | 1,460,000 | 2,110,000 | 60,833 |
| 700mn won | 1,358,000 | 2,044,000 | 2,954,000 | 85,167 |
Rate structures differ by provider. According to Zippoom's three-way comparison, HUG applies roughly 0.115–0.146% for apartments with discounts of up to 60% for priority groups; SGI Seoul Guarantee charges 0.138–0.183% a year for apartments and 0.208% for other housing types; and Korea Housing Finance Corporation (HF) tops out at 0.04% a year, falling to 0.02% where preferential conditions are met. On an 80 million won deposit over two years that works out to about 7,600 won a month with HUG and 2,600 won with HF. HF is cheaper but its product is tied to loan arrangements, so it is not a route open to everyone.
Adding Seoul's premium subsidy
The subsidy described by the Seoul Housing Portal covers Seoul residents who own no home and whose deposit is 300 million won or less. Income limits are 50 million won a year for young adults aged 19 to 39, 75 million won for newlyweds and 60 million won for other adults. Premiums already paid are refunded in full for young adults and newlyweds (up to 400,000 won) and at 90% for other adults (same cap).
A young household paying 876,000 won for two years on a 300 million won deposit at the middle rate and receiving 400,000 won ends up bearing 476,000 won, or 19,833 won a month. On a 150 million won deposit, the two-year premium of 438,000 won drops to 38,000 won after the refund. Because the subsidy is a flat cap, the smaller the deposit the larger the relief. Applications go through Gov24, the Ansimjeonse portal, or the district office, and the premium must already be paid.
The filing deadline
Applications must be filed before half the lease term has elapsed. For a new contract the clock starts on the later of the final payment date and the resident registration date; for a renewal it runs from the start of the renewed term. On a two-year lease that means filing within the first year — miss it and the route closes even if every other condition is met. Separately from the guarantee, securing opposing power and priority repayment rights through a fixed date stamp and resident registration remains the basic line of defence. The guarantee does not create priority; it pays out when the deposit is not returned.
Grounds for rejection
- Homes with auction commencement decisions, seizures or provisional attachments recorded on the title
- Homes registered as illegal structures in the building ledger
- Non-residential buildings such as factories or neighbourhood facilities, even where used as housing
- Prior secured claims alone exceeding 60% of home value
- Deposit-to-home-value ratio above 90%
What to check
- Read the mortgage amount off the title deed before signing, then compute home value × 0.9 − lien to get your own qualifying ceiling
- Confirm which price basis will be recognised — KB market price or official assessed value shifts where the 90% line falls
- In a multi-household building, check whether other tenants' prior deposits are counted in the ratio
- Mark the filing deadline (half the lease term from the later of final payment or registration) on a calendar
- Compare total premiums across HUG, SGI and HF, checking eligibility for each separately
- Check whether you fall inside a local subsidy scheme such as Seoul's (deposit 300mn won or less, income limits)
