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#HUG 2 posts

Jeonse deposit guarantee: the 126% of official price ceiling

HUG's jeonse (lump-sum deposit lease) return guarantee sets its limit at 90% of assessed house value. Because that value is taken as 140% of the official published price, deposit plus senior debt cannot exceed 126% of it.

Policy & RatesSep 1, 20266 min

Jeonse Deposit Guarantee: The 90% Debt Ratio and Premium Math

Korea's jeonse deposit return guarantee requires a deposit of 700mn won or less in the capital region, and it fails if prior liens plus the deposit exceed 90% of the home's value. Here is the arithmetic.

Policy & RatesJul 31, 20266 min