Introduction: The Reality of Deposit Refunds in the Era of Jeonse Fraud and the Jeonse Crisis

The jeonse fraud wave that began in earnest in 2022, combined with the reverse-jeonse crunch and the jeonse crisis that deepened through 2025, has pushed countless tenants into the danger of not recovering their deposits. According to statistics from the Ministry of Land, Infrastructure and Transport and HUG (Korea Housing & Urban Guarantee Corporation), the total amount paid out on jeonse deposit guarantees exceeded 4 trillion KRW in 2025 alone, and the trend has shown no sign of slowing in the first half of 2026.

Even after the contract expires, it has become commonplace for landlords to delay refunding deposits with excuses like "I can only return it once the next tenant is found" or "I don't have the funds." As a result, tenants are increasingly suffering damages such as being unable to secure a new home because their deposit is tied up, or watching loan interest snowball. In these circumstances, tenants can no longer protect their rights through "goodwill patience" alone.

This article systematically lays out, step by step, the legal procedures for reclaiming a jeonse deposit. From applying for an imchagwon-deunggi-myeongryeong (lease registration order) to sending certified mail (naeyong-jeungmyeong), filing a jigeupmyeongryeong (payment order), pursuing the main lawsuit, and finally moving to compulsory execution, this guide provides an A-to-Z reference that can actually be used in practice. It comprehensively covers the cost and duration of each step based on 2026 standards, as well as how to leverage HUG guarantee insurance.

1. Preparation Steps Before Demanding the Deposit Refund

There are essential preparations that must be completed before litigation. Skipping or neglecting this step can cost you your opposing power (daehangryeok) and priority repayment right (usunbyeonjegwon), leaving you at a legal disadvantage.

1.1 Notice Six Months Before Contract Termination

Under Article 6 of the Housing Lease Protection Act, the tenant must clearly notify the landlord of the intent to refuse renewal between six months and two months before the end of the lease term. Missing this window triggers an "implied renewal" (mukshijeok gaengshin), which automatically extends the lease by two years under the same conditions.

  • Notice timing: Between 6 and 2 months before contract expiry (expanded from the previous 6-1 month window by the December 2023 amendment)
  • Notice methods: Text message, KakaoTalk, and email are possible, but certified mail (naeyong-jeungmyeong) provides the most solid evidence
  • Required wording: You must state "I refuse to renew the contract and request the full return of my deposit on the expiry date"
  • Preserving evidence: Keep the mailing receipt, delivery confirmation, screenshots of replies, and so on in a dedicated folder

1.2 Applying for an Imchagwon-Deunggi-Myeongryeong (Lease Registration Order) to Preserve Opposing Power

If you must move out before recovering your deposit after the contract has ended, you must apply for an imchagwon-deunggi-myeongryeong (lease registration order) and confirm that it has been recorded on the real estate registry before moving. Without this, transferring your resident registration will wipe out both your opposing power and your priority repayment right.

  • Court with jurisdiction: The district court or branch court having jurisdiction over the location of the leased residence
  • Required documents: Copy of the lease agreement, certificate of resident registration (jumindeungnok deungbon), proof of the landlord's address, and certificate of the building's registered items
  • Processing time: Typically 2-4 weeks after filing (including registration on the registry)
  • Cost: Approximately 50,000-100,000 KRW including stamp fees, registration license tax, and service fees (registration costs are separate)
  • Caution: If you move before registration is complete, your opposing power is extinguished. Always verify that "housing lease right" is recorded on the registry before relocating

1.3 Sending Certified Mail (Naeyong-Jeungmyeong)

Certified mail itself has no legal coercive force, but it serves as powerful evidence in any future lawsuit that "the tenant formally demanded the return of the deposit." It also applies psychological pressure on the landlord, often encouraging voluntary payment.

  • Contents to include: Summary of the contract, expiry date, amount to be refunded, refund deadline (typically within 14 days), and a warning of legal action if not paid
  • Sending method: Visit a post office or use the internet post office (e-Post) to send electronic certified mail
  • Cost: Approximately 5,000-7,000 KRW for a 3-page document (including registered mail fees)
  • Storage: Always keep one original copy of the certified mail for your own records

2. Filing a Jigeupmyeongryeong (Payment Order) - The Simplified Procedure

A jigeupmyeongryeong (payment order) is a simplified procedure that allows a creditor to pursue collection without filing a full lawsuit. It is the most efficient first option when, as with a deposit refund, both the amount and the creditor-debtor relationship are clear.

2.1 Filing Method and Required Documents

A payment order can also be filed remotely through the Electronic Litigation System (ecfs.scourt.go.kr), making it highly accessible.

  • Court with jurisdiction: The district court having jurisdiction over the debtor's (landlord's) address
  • Required documents: Payment order application, copy of the lease agreement, copy of the certified mail, the lease registration order ruling, resident registration certificate, and real estate registration certificate
  • Drafting tip: In the prayer for relief, specify "principal + delay damages (5% per annum; 6% if the debtor is a merchant under the Commercial Act; 12% after the complaint is filed)"
  • Benefits of electronic litigation: No need to visit the court, 10% discount on stamp fees, real-time status tracking

2.2 Stamp Fees and Service Fees (2026 Standards)

The stamp fee for a payment order is about one-tenth that of a full lawsuit, making it extremely cost-effective. As of 2026, the fees are as follows:

  • Stamp fee (payment order): Approximately 1/10 of the case value. For example, for a 100 million KRW deposit, about 45,500 KRW (about 40,000 KRW with the 10% electronic litigation discount)
  • Service fee: 6 rounds × 5,200 KRW per party = 31,200 KRW (2026 standard)
  • Additional stamp fee if converted to a full lawsuit: You must pay 9 times the payment order stamp fee, which ultimately equals the regular full-lawsuit stamp fee
  • Example (100 million KRW deposit): Payment order stage ~70,000 KRW → upon objection, an additional ~400,000 KRW for the full lawsuit stamp

2.3 Conversion to Main Lawsuit Upon Objection

If the landlord files an objection within 2 weeks of receiving the payment order ruling, the case is automatically converted to a main lawsuit (a suit for return of deposit).

  • Objection period: Within 14 days of service
  • If no objection: The payment order becomes final and carries the same enforcement power as a judgment (compulsory execution becomes possible from this point)
  • If there is an objection: The case is automatically transferred to a main lawsuit, and the tenant must pay additional stamp fees and supplement the complaint
  • Practical tip: If the landlord disappears and service becomes impossible, the case switches to service by public notice (gongsisongdal), which can itself take 3-4 months or more, so consider filing the main lawsuit directly from the start

3. The Main Lawsuit for Deposit Refund

If the landlord files an objection to the payment order or you choose to go directly to a full lawsuit, the case proceeds as a formal civil suit. A main lawsuit takes more time and money, but it allows for evidence review and oral arguments, leading to a final, binding judgment. It is the most definitive route.

3.1 How to Draft the Complaint

The complaint (sojang) must clearly state the prayer for relief and the cause of action, and must be submitted together with an evidence list and the means of proof.

  • Prayer for relief: "The defendant shall pay the plaintiff KRW ○○○ and delay interest thereon at 12% per annum from ○ year ○ month ○ day until the day the amount is fully paid"
  • Cause of action: Describe, in chronological order, the conclusion of the lease agreement, expiry of the term, emergence of the refund obligation, the refund demand, and non-performance
  • Attached evidence: Lease agreement, certified mail, real estate registry, lease registration order ruling, text/KakaoTalk chat logs, and bank transfer records
  • Claim for delay interest: 12% per annum (under the Act on Special Cases Concerning the Promotion of Lawsuits) applies from the filing date
  • Hiring an attorney: Recommended for large deposits or cases also involving jeonse fraud allegations. Retainers typically run 3-5 million KRW, with success fees of 10-20%

3.2 Average Duration (6 Months to 1 Year)

The duration of the main lawsuit varies with case complexity and the court's workload, but the typical timeline based on 2026 standards is as follows:

  • Complaint filing to defendant's answer: About 1-2 months
  • First oral argument date: About 2-3 months after filing
  • Additional arguments and evidence examination: 2-3 rounds, with 1-2 months between sessions
  • Judgment date: 2-4 weeks after closing arguments
  • Overall average: Simple cases take 6 months; complex ones (contested landlord, need for service by public notice) can take over a year
  • On appeal: Adds 6 months to 1 year; if it reaches the Supreme Court, over 2 years is possible

3.3 Win Rate and Enforceability

Where evidence such as lease registration, certified mail, and the contract is well-documented, the first-instance win rate for deposit refund suits exceeds 90%, which is very high. However, "winning" and "actually collecting" are two different matters.

  • Win rate: About 92% at the first instance (based on 2024-2025 Seoul Central District Court statistics)
  • Actual recovery rate: Around 55-65%. Recovery is difficult when the landlord lacks assets or deliberately hides them
  • Main reasons for failed recovery: (1) Landlord insolvency or bankruptcy, (2) excessive senior mortgages, (3) repeated failed auctions
  • Countermeasures: Alongside litigation, actively apply for asset searches on the landlord (financial accounts, real estate, vehicles) and make aggressive use of provisional attachment

4. Compulsory Execution (After Judgment)

Once you have secured an enforcement title - either a final judgment or a confirmed payment order - you can launch compulsory execution based on it. This is the key step where the deposit is actually recovered.

4.1 Compulsory Real Estate Auction

A compulsory auction against the leased property owned by the landlord, or another property owned by the landlord, is the most direct and effective means of recovery.

  • Court with jurisdiction: The auction division of the district court having jurisdiction over the real estate
  • Required documents: Original enforcement title (judgment or payment order), service confirmation, execution clause, and real estate registry
  • Costs: Registration license tax and local education tax (0.24% of the claim amount), plus an auction advance deposit of roughly 2-4 million KRW (varies with case size)
  • Distribution priority: Senior claims such as mortgages and tax claims come first; tenants participate in distribution according to their fixed-date priority repayment rank
  • Duration: Typically 8-14 months from filing to distribution
  • Caution: Failed auctions reduce the price to 80%, then 64% of the original appraisal. With heavy senior claims, you may receive nothing and your claim could be extinguished

4.2 Seizure of Deposits and Wages

Beyond real estate, compulsory execution can also target the landlord's bank deposits, wages, business income, and other monetary claims. Deposit seizures, in particular, are quick to process and produce immediate results.

  • Claim seizure and collection order: An order allowing you to demand payment directly from the third-party debtor (bank, etc.). Typically issued within 1-2 weeks of filing
  • Financial search (asset search) application: The court can query all banks on your behalf. Costs around 50,000 KRW per case, using the Korea Federation of Banks' integrated search
  • Wage seizure limits: Half of the portion of monthly wages exceeding 3 million KRW; amounts up to 1.85 million KRW (equivalent to the minimum cost of living) cannot be seized
  • Seizure of business revenues: Card-sale receivables, rental income, and accounts receivable can also be seized
  • Practical tip: Even for small amounts, it is effective to seize deposits at several banks at once. Start with the banks you know the landlord uses

4.3 Using a HUG Jeonse Deposit Return Guarantee

If you enrolled in a "jeonse deposit return guarantee" with HUG (Korea Housing & Urban Guarantee Corporation) or SGI Seoul Guarantee when signing the lease, you can file a claim directly with the guarantee institution without going through a lengthy lawsuit against the landlord. This is the fastest and most reliable recovery method.

  • HUG performance claim requirements: 1 month has passed since the contract expired, the lease registration order is complete, and the move-out is complete (resident-registration transfer is not strictly required)
  • Required documents: Original guarantee certificate, lease agreement, lease registration on the registry, copy of certified mail, and resident registration certificate
  • Payment period: The full deposit is typically paid out within 1-2 months after the claim is filed
  • Subrogation: After paying the tenant, HUG exercises its right of indemnity against the landlord. The tenant is freed from all subsequent procedures
  • Caution: This option is unavailable if you did not enroll in the guarantee. Always enroll with your next contract (the premium is about 0.115-0.154% of the deposit per year)
  • Improvements in 2026: The HUG-eligible property price ceiling has been raised to 1.2 billion KRW (for the Seoul metropolitan area), and the process has been streamlined through electronic guarantee certificates

Conclusion: A 5-Step Strategy for Quick Deposit Recovery

Recovering a jeonse deposit is a fight not of emotion but of procedure. Rather than wasting time on personal negotiations with the landlord, systematically following legal procedures from an early stage ultimately leads to faster, more reliable recovery. Given the state of the 2026 jeonse market, the following 5-step strategy is recommended.

  • Step 1 (6 months before expiry): Send certified mail of your intent to refuse renewal + verify HUG guarantee enrollment
  • Step 2 (2 months before expiry): Send a second certified mail requesting the refund + plan your new home contract and move
  • Step 3 (immediately after expiry): File the lease registration order (always confirm registration before moving) + file a HUG performance claim in parallel
  • Step 4 (1 month after expiry): If not enrolled in HUG, file a payment order (using electronic litigation) or file the main lawsuit
  • Step 5 (after the judgment becomes final): File for a compulsory real estate auction and deposit seizure simultaneously, and use an asset search to find additional targets for execution

The most important principle is to proceed "without delay, with evidence, and on multiple fronts." If handling this alone is difficult, make full use of public support organizations such as the Korea Legal Aid Corporation (dial 132 without an area code), the Housing Lease Dispute Mediation Committee, and the HUG Jeonse Victim Support Center. For most tenants, the deposit amounts to nearly all of their assets, and protecting that right is a legitimate claim guaranteed by law.