Apartment complexes in Seoul. (Yonhap)
SEOUL, Dec. 20 (Korea Bizwire) – Starting December 21, real estate registry documents for properties under trust will include precautionary notes to prevent rental scams, particularly jeonse fraud, following amendments to the Real Estate Registration Act, the Supreme Court’s Administration Office announced on December 19.
Jeonse fraud occurs when tenants are defrauded in jeonse transactions—a unique Korean housing practice where tenants pay a large lump-sum deposit, or “key money,” to lease a property. This deposit typically amounts to 50% of the property’s value but can range as high as 60–80%.
For trust-registered properties, tenants must verify both the real estate registry and the trust registry, which contains critical information about the trust’s purpose, beneficiary, and terms for managing and disposing of the property. However, limited public awareness of this process has resulted in numerous cases of rental fraud.
The updated registry system will now include notes reminding tenants to consult the trust registry for these details before entering into a lease agreement.
Starting January 31, 2025, tenants will also be able to access trust registry information online through the Internet Registry Office.
The Supreme Court Administration Office plans to retroactively apply these precautionary notes to approximately 1.47 million existing trust registrations before December 21, pledging continued efforts to protect vulnerable groups and promote transparency in the housing market.
M. H. Lee (mhlee@koreabizwire.com)
