2026 Jeonse & Wolse Contract Checklist - Complete Guide to Avoid Rental Scams

Introduction: What You Must Know Before Signing a Lease in the Age of Jeonse Fraud

From 2024 to the present in 2026, Jeonse (lump-sum deposit lease) fraud has become one of the most serious social problems in Korea's real estate market. According to statistics from the Ministry of Land, Infrastructure and Transport, approximately 18,000 Jeonse fraud cases were reported in 2024 alone, with cumulative damages exceeding trillions of Korean won. In 2025, new schemes continued to emerge, including so-called "villa king" cases and scams exploiting trust companies. The damage has not diminished in 2026. A significant number of victims are young professionals entering the workforce, newlyweds, and single-person households who have limited real estate experience, and the tragedy of a single bad contract wiping out a lifetime's savings keeps repeating.

Jeonse and Wolse (monthly rent) contracts are not simple paperwork. They are property transactions involving deposits ranging from tens of millions to hundreds of millions of Korean won, and contracts that involve legally complex webs of rights and obligations. In a Jeonse contract, the tenant entrusts the full deposit to the landlord and lives rent-free, so if the landlord's financial condition or the property's legal status is problematic, the tenant risks losing the entire deposit. Wolse contracts also involve deposits and can lead to various disputes during the contract period, requiring equal caution.

This guide was written for:

• Young professionals preparing to sign their first Jeonse or Wolse contract upon becoming independent
• Newlyweds searching for a new home
• Existing tenants who want to review the contract process before moving
• Parents who want to help their children prepare for independent living
• All tenants who have become anxious after seeing Jeonse fraud news

From here on, we will guide you through every step of the lease contract process without omission: basic knowledge of Jeonse and Wolse, pre-contract verification items, contract-day checklists, what to do immediately after signing, fraud prevention by type, and deposit recovery. If you read this guide through to the end and follow its advice, you can minimize the risk of Jeonse fraud and start a safe housing arrangement.

1. Jeonse & Wolse Basics

1.1 Jeonse vs. Wolse vs. Semi-Jeonse: What's the Difference?

Korea's rental market is broadly divided into three types: Jeonse, Wolse, and Semi-Jeonse (Ban-jeonse). Understanding the characteristics, advantages, and disadvantages of each type is the first step to a safe contract.

Category	Jeonse (Lump-Sum Deposit Lease)	Wolse (Monthly Rent)	Semi-Jeonse
Definition	Full deposit paid upfront, no monthly rent	Small deposit + monthly rental payments	Mid-sized deposit + small monthly rent
Deposit Size	Very high (hundreds of millions of KRW)	Low (millions to tens of millions of KRW)	Medium (tens of millions to hundreds of millions of KRW)
Monthly Cost	None (only maintenance fees)	Yes (monthly rent payments)	Yes (small monthly rent)
Advantages	No monthly housing costs, capital preservation	Low initial capital requirement	Compromise between Jeonse and Wolse
Disadvantages	Deposit return risk, fraud risk	Monthly expenses, difficulty accumulating assets	Combines disadvantages of both Jeonse and Wolse
Fraud Risk Level	Very high	Relatively low	High

Jeonse is a uniquely Korean lease system where the tenant deposits a large sum, typically 60-80% of the property's value, and lives rent-free. At the end of the contract, the full deposit is returned. However, the core of Jeonse fraud lies in cases where the landlord cannot or deliberately refuses to return the deposit. Wolse involves a relatively small deposit plus monthly rent payments, with lower upfront costs but ongoing monthly expenses. Semi-Jeonse is a hybrid between Jeonse and Wolse, combining a moderate deposit with small monthly rent payments.

1.2 Key Points of the Housing Lease Protection Act

The Housing Lease Protection Act is the key legislation designed to protect tenants' housing stability. You must familiarize yourself with its main provisions.

Right of Opposing Force (Daehangnyeok) means that once a tenant takes possession of the property and completes move-in registration, from the next day onward they can assert their lease contract against third parties (new owners, auction buyers, etc.). Even if the property is sold or goes to auction, a tenant with the Right of Opposing Force can continue to reside until the contract ends and their deposit is also protected.

Priority Repayment Right (Useon Byeonjegwon) means that when a tenant has met the requirements for the Right of Opposing Force (property possession + move-in registration) and has obtained a fixed-date confirmation on the lease contract, they can receive their deposit back before lower-priority creditors if the property goes to auction. This is precisely why you must obtain the fixed-date confirmation.

Super-Priority Repayment Right is a special protection for small-sum tenants. Tenants whose deposit is below a certain threshold can recover a portion of their deposit with the highest priority at auction, ahead of all other creditors. As of 2026, in Seoul, tenants with deposits of 165 million KRW or less can receive up to 55 million KRW in super-priority repayment (amounts vary by region).

Lease Renewal Request Right (2+2 Years): Tenants can request a contract renewal between 6 months and 2 months before the contract expires, and the landlord cannot refuse without legitimate grounds. This ensures residence for a total of 4 years: the initial 2-year contract plus an additional 2 years. However, this right can only be exercised once, and there is an exception when the landlord intends to move in personally.

Rent Increase Cap (5%): When renewing a contract, the rent increase (Jeonse deposit or monthly rent) cannot exceed 5% of the previous contract amount. This system prevents tenants' housing costs from increasing sharply.

2. Essential Pre-Contract Verification

2.1 How to Read the Property Registry (Deunggibu Deungbon)

The property registry is the most important official document for verifying a property's legal rights. Anyone can view it on the Internet Registry Office (iros.go.kr), and the cost is 1,000 KRW per copy (700 KRW for viewing only). You must obtain it yourself before signing a contract; relying solely on what the real estate agent shows you is not enough.

The property registry consists of three main sections: the Title Section (Pyojebu), Section A (Gapgu), and Section B (Eulgu).

• Title Section (Pyojebu): Records the property's location, area, structure, and usage. Always verify that the address matches the property you actually visited.
• Section A (Gapgu - Ownership): Confirms who the current owner is and whether there are any provisional seizures, provisional dispositions, or preliminary registrations on the ownership. Verify that the owner is the same person as the contracting party (landlord) by checking their ID. If there is a provisional seizure (gaapryu), it means the landlord has debt issues, and you should exercise extreme caution. If there is a trust registration, the contract may be void without the trust company's consent, so you must verify with the trust company.
• Section B (Eulgu - Other Rights): Records rights other than ownership, such as mortgage rights and Jeonse rights. Mortgage rights (geunjeoданg) are collateral set by financial institutions for loans. The larger the mortgage amount, the lower the chance of recovering your deposit in an auction.

2.2 Checking the Building Registry (Geonchukmul Daejang)

The Building Registry is an official document that records a building's construction permit, usage, area, and structure. It can be viewed free of charge on the Government 24 portal (gov.kr). Though as important as the property registry, it is a document many tenants overlook.

• Checking for Illegal Construction: If the registered usage differs from the actual use (e.g., a commercial facility being used as residential), it may constitute an illegal building. If you register your move-in at an illegal building, your Right of Opposing Force may not be recognized, making deposit protection impossible.
• Checking for Violation Markings: If the Building Registry shows "violation building," it means there has been unauthorized expansion or change of use. Such buildings may not qualify for Jeonse deposit return insurance, so they must be avoided.
• Verifying Area: Confirm that the area on the Building Registry, the actual area, and the area stated in the contract all match. Discrepancies may indicate illegal expansion.

2.3 Verifying the Landlord

After confirming the owner on the property registry, you must thoroughly verify that the actual contracting party is indeed that owner.

• ID Verification: Always cross-reference the owner's name and resident registration number (including the last digits) from the property registry with the contracting party's ID. Ideally, you should also verify whether the ID is authentic (using the Government 24 ID verification service).
• Precautions for Contracts via Representative: When contracting with a representative rather than the owner, you must verify the following documents: (1) The owner's certified seal certificate (issued within the last 3 months), (2) A power of attorney bearing the certified seal, (3) A copy of the owner's ID, (4) The representative's original ID. If possible, the safest approach is to call the owner directly to confirm the representative arrangement.
• Caution with Corporate-Owned Properties: If the owner is a corporation rather than an individual, verify the representative through the corporate registry, and request the corporate seal certificate and business registration. Be especially cautious if a recently established corporation owns multiple properties, as it may be a shell company for gap investment or Jeonse fraud.

2.4 Market Price Research

Verifying whether the Jeonse deposit is appropriate relative to the actual market value is the most basic way to avoid shell Jeonse. Use the following authoritative price-checking resources.

• Ministry of Land, Infrastructure and Transport Real Transaction Price System (rt.molit.go.kr): The official government system where you can check actual sale prices and Jeonse prices. Always check recent transactions for the same complex and same area.
• KB Real Estate Prices (kbland.kr): Price information provided by Kookmin Bank, highly reliable especially for apartments. You can check the Jeonse-to-sale price ratio (Jeonse price ratio).
• Naver Real Estate (land.naver.com): Useful for checking current listing prices. However, these are asking prices and may differ from actual transaction prices.
• Korea Real Estate Board - Real Estate Tech (www.reb.or.kr): Check regional Jeonse price indexes and market trends.

Safe Jeonse Price Ratio Guidelines: A Jeonse deposit at 60% or less of market value is relatively safe, above 70% requires caution, and 80% or above indicates a very high risk of shell Jeonse. Villas, multi-family housing, and officetels in particular are harder to appraise than apartments and carry greater risk of price decline, so even more conservative judgment is needed.

3. Contract Day Checklist

3.1 Essential Contract Entries

The contract is the most important evidence in case of disputes. Make sure the following 10 items are included completely and accurately.

1. Property Description: Verify that the address, area, structure, and usage match the property registry and building registry
2. Landlord Information: Name, resident registration number, address, contact - verify it matches the property registry owner
3. Tenant Information: Your name, resident registration number, current address, contact
4. Total Deposit Amount: Exact Jeonse or Wolse deposit amount (written in both numbers and words)
5. Monthly Rent Amount: For Wolse contracts, the monthly rent amount and payment date
6. Down Payment, Interim Payment, and Balance Amounts and Payment Dates: Amounts and exact dates for each stage
7. Lease Period: Start date and end date (minimum 2 years recommended)
8. Move-in Date: The actual date when move-in is possible
9. Special Terms: All additionally agreed-upon items
10. Real Estate Agent Information: Agent name, office name, registration number, contact, official seal

3.2 How to Write Special Terms

The special terms section is where additional agreements not covered by the standard contract are recorded, and it plays a crucial role in preventing disputes. The following 5 special terms must be included.

• Special Term 1 - Regarding Mortgages: "The landlord shall discharge all mortgage rights on this property before the balance payment date. If the landlord fails to do so, the tenant may cancel the contract and claim double the down payment."
• Special Term 2 - Deposit Return: "Upon termination of the lease, the landlord shall return the full deposit to the tenant on the day the contract ends. If the return is delayed, late interest at an annual rate of 12% shall be added."
• Special Term 3 - Defect Repairs: "Pre-existing defects (leaks, mold, boiler malfunctions, wallpaper and flooring conditions, etc.) shall be repaired at the landlord's expense before handover. Hidden defects discovered after move-in shall also be the landlord's responsibility."
• Special Term 4 - Deposit Return Insurance Enrollment: "The landlord shall provide necessary documents (confirmations, etc.) and cooperate so the tenant can enroll in Jeonse deposit return insurance."
• Special Term 5 - Prohibition of Rights Changes: "The landlord shall not create additional mortgages, provisional seizures, Jeonse rights, or any other rights changes that would be disadvantageous to the tenant's deposit recovery during the lease period."

3.3 Down Payment, Interim Payment, and Balance Payment

Proper handling of financial transactions is the core of fraud prevention. You must follow these principles.

• Down Payment: Typically 5-10% of the deposit. Always transfer to a bank account in the property registry owner's name. Never transfer to an account in the name of the agent, representative, or any third party.
• Interim Payment: Interim payments are often not required in Jeonse contracts, but if they are, transfer only to the owner's account.
• Balance: On the balance payment day, you must re-obtain the property registry dated that same day to confirm no new encumbrances (additional mortgages, seizures, etc.) were added after the contract was signed. This is the most critical step.
• Keep Receipts: Always keep transfer confirmations and receipts for all financial transactions. Never pay in cash. All transactions should be done via bank transfer to maintain a record.

4. Three Things to Do Immediately After Signing

After signing the contract and paying the balance, there are 3 things you must do immediately. Delaying even one day creates a gap in your deposit protection.

4.1 Move-in Registration (Same Day!)

Move-in registration (Jeonip Singo) is the most fundamental requirement for obtaining the Right of Opposing Force. It must be completed on the day you move in.

• Offline Method: Visit the local community center (dong office) to fill out and submit the move-in registration form. Bring your ID and lease contract. Processing is immediate.
• Online Method: Search for "move-in registration" on Government 24 (gov.kr) and apply online. A digital certificate or simplified authentication is required. Since online processing may take 1-2 days, visiting in person is faster when possible.
• Important Note: The Right of Opposing Force from move-in registration takes effect from midnight of the following day. Therefore, it is crucial to align the balance payment date and move-in registration date on the same day, and you must verify that no new rights changes appear on the property registry before the balance date.

4.2 Obtaining the Fixed-Date Confirmation

The fixed-date confirmation (Hwakjeongil-ja) is an official date stamp placed on the lease contract, and it is an essential requirement for obtaining the Priority Repayment Right.

• Method: Present the original lease contract at a community center, registry office, or court to receive the fixed-date stamp. The cost is 600 KRW.
• Online: You can also obtain the fixed-date confirmation online through the Supreme Court Internet Registry Office.
• Effect: When you have both move-in registration and fixed-date confirmation, you can receive your deposit in priority over lower-priority creditors at auction.
• Key Point: Move-in registration and fixed-date confirmation must be done on the same day. You can get the fixed-date confirmation at the community center simultaneously with your move-in registration.

4.3 Enrolling in Jeonse Deposit Return Insurance

Jeonse Deposit Return Insurance is an insurance product where, if the landlord cannot return the deposit, the guaranteeing institution pays the deposit on behalf of the landlord. As of 2026, enrollment is strongly recommended for all tenants signing Jeonse contracts.

Category	HUG (Housing & Urban Guarantee Corporation)	SGI Seoul Guarantee	HF (Korea Housing Finance Corporation)
Coverage Limit	700M KRW (capital area), 500M KRW (other)	700M KRW (capital area), 500M KRW (other)	700M KRW (capital area), 500M KRW (other)
Premium Rate (Annual)	0.115-0.154% of deposit	0.183-0.321% of deposit	0.02-0.04% of deposit (linked to Jeonse loan)
Eligibility	Jeonse ratio 90% or less, move-in + fixed-date completed	Jeonse ratio 100% or less, move-in + fixed-date completed	Jeonse loan borrowers
Coverage Scope	Full deposit amount	Full deposit amount	Within loan principal range
Enrollment Timing	After move-in registration, before half of lease period has passed	After move-in registration, before half of lease period has passed	At time of loan execution
Features	Most common, relatively strict screening	Alternative when HUG enrollment is not possible	Loan-linked product, low premiums

Key Checkpoints for Deposit Insurance Enrollment:

• Enroll as early as possible. Enrollment becomes impossible after half the lease period has passed.
• Premiums are very low relative to the deposit. For example, for a 300 million KRW deposit, the annual premium under HUG is approximately 340,000-460,000 KRW, which is negligible compared to losing the entire deposit.
• Villas, multi-family housing, and officetels may face stricter insurance screening compared to apartments. It is advisable to confirm insurance eligibility before signing the contract.
• Even with deposit insurance enrolled, it may take several months to receive the deposit in the event of an insurance claim, so keep this in mind.

5. Types of Jeonse Fraud and Prevention

5.1 Shell Jeonse (Kkangtongjeonse) Fraud

Shell Jeonse refers to a situation where the sum of the Jeonse deposit and the mortgage (secured loan) exceeds the property's market value. In this state, if the landlord fails to repay the loan and the property goes to auction, the bank recovers its loan first, leaving little to nothing for the tenant to recover their deposit.

• Prevention: Check the mortgage amounts on the property registry and calculate whether the mortgage plus Jeonse deposit exceeds 70% of market value. Use KB Real Estate prices or actual transaction prices as the reference.
• High-Risk Type: Most common with newly built villas and multi-family housing. Do not fall for the temptation of "Jeonse cheaper than market price." A Jeonse price significantly below market value is a classic sign of shell Jeonse.

5.2 Double Contract Fraud

Double contract fraud involves signing lease contracts with multiple tenants for the same property, collecting deposits multiple times. This can involve signing additional contracts for a property where another tenant already lives, or collecting down payments from multiple people simultaneously and then disappearing.

• Prevention: Before signing, always visit the property in person to check if there are current occupants. Through a household inquiry at the community center, you can verify whether there are currently registered households. Always pay the balance on the day you move in and complete move-in registration immediately.

5.3 Impersonation Fraud

Impersonation fraud involves someone who is not the actual landlord posing as the landlord, or using forged powers of attorney to act as a representative during the contract. Forged IDs and forged certified seal certificates may also be used.

• Prevention: Thoroughly cross-reference the property registry owner with the contracting party's ID. For representative contracts, call the owner directly to verify, and check the authenticity of the certified seal certificate on Government 24. If possible, the safest approach is to require the owner to be present on the contract day.

5.4 "Villa King" / Gap Investment Fraud

"Villa king" fraud occurs when one person or corporation purchases dozens to hundreds of villas, using Jeonse deposits to fund additional purchases in a Ponzi-like scheme. When real estate prices fall or funds run out, deposit returns become impossible, resulting in massive fraud. Between 2022 and 2024, large-scale damage occurred in Incheon, Busan, and other areas, causing significant social shock.

• Prevention: After confirming the owner on the property registry, check whether that owner (or corporation) owns multiple properties. If multiple units in the same building have the same owner, there is a high probability of gap investment. Also, be cautious of properties with frequent recent transaction history, as they may be for speculative purposes.
• Checkpoints: If the owner is a corporation, check whether the incorporation date is recent and whether the capital is adequate. If a real estate agency is aggressively recommending specific properties, you should question the relationship between the agency and the landlord.

6. Guide to Getting Your Deposit Back

As the contract expiration approaches, you must begin preparations early to ensure the safe and certain return of your deposit. Waiting until right before expiration may already be too late.

What to Do 2 Months Before Expiration:

• Notify the landlord of your intent to terminate the contract in writing (registered mail or text message). Verbal notice alone may not be legally binding.
• Re-obtain the property registry to verify that no new mortgages or seizures were placed during the contract period.
• Discuss the deposit return schedule and method with the landlord and record the agreement via text or email.
• If you are enrolled in deposit return insurance, check the claim procedures with the guaranteeing institution in advance.

Steps to Take if Deposit is Not Returned (Step by Step):

1. Send a Registered Mail Demand Letter: Send a registered mail letter demanding deposit return via the post office. Registered mail is a legally recognized document that specifies "when and how much deposit to return." The cost is approximately 3,000-5,000 KRW.
2. Apply for Tenant's Lien Registration Order: If you need to move out but haven't received your deposit, apply for a Tenant's Lien Registration Order at the district court. This allows you to maintain your Right of Opposing Force and Priority Repayment Right even after moving out. The application fee is approximately 3,000 KRW, and the court's decision takes 1-2 weeks.
3. File a Small Claims Suit or Payment Order: For deposits of 30 million KRW or less, file a small claims suit (resolved quickly in a single hearing). For larger amounts, file a payment order application. If the opposing party does not object, the payment order becomes immediately enforceable.
4. Compulsory Execution (Auction Application): Once you have a court judgment or confirmed payment order, you can apply for compulsory execution (auction) against the landlord's assets, including the property in question.

Jeonse Deposit Return Insurance Claim Procedure:

• After confirming deposit non-return following contract expiration, file a claim with the guaranteeing institution (HUG, SGI, etc.).
• The guaranteeing institution makes a subrogation claim against the landlord. If the return is not made within a specified period, the institution pays the deposit to the tenant on behalf of the landlord (subrogation payment).
• Required documents: Original lease contract, fixed-date confirmation certificate, copy of registered mail demand, deposit payment records, resident registration certificate, etc.
• Processing time: Approximately 1-3 months after claim filing (may vary depending on the case)

Conclusion: Your Entire Savings Are at Stake in the Contract

A Jeonse or Wolse contract is not mere paperwork; it is the most important decision for protecting assets ranging from tens of millions to hundreds of millions of Korean won. As Jeonse fraud cases from 2024-2026 demonstrate, a single moment of carelessness can result in losing everything saved over years. Always review the final checklist below before signing any contract.

Stage	Check Item	Verified
Pre-Contract	Obtain and review property registry yourself (Section A / Section B)
Pre-Contract	Check building registry (illegal construction, usage)
Pre-Contract	Verify mortgage + deposit is 70% or less of market value
Pre-Contract	Verify landlord identity (confirm property owner)
Pre-Contract	Research market prices (actual transaction prices, KB prices)
Contract Day	Verify 10 essential contract entries
Contract Day	Confirm inclusion of 5 essential special terms
Contract Day	Transfer only to an account in the owner's name
Balance Day	Re-verify property registry dated the same day
Move-in Day	Complete move-in registration
Move-in Day	Obtain fixed-date confirmation
After Move-in	Enroll in Jeonse deposit return insurance

In real estate contracts, the most dangerous thoughts are "it's too much trouble" and "surely that won't happen to me." Obtaining a property registry costs only 1,000 KRW, getting a fixed-date confirmation is 600 KRW, and move-in registration is free. This small cost and modest effort can protect assets worth hundreds of millions of won. Conversely, neglecting these steps can result in losing everything you've saved over years in a single moment.

Your entire savings are at stake in the contract. Follow every procedure outlined in this guide without exception, and if anything seems even slightly suspicious, postpone the contract and consult a professional (lawyer, Legal Aid Corporation, Korea Legal Aid Corporation hotline 132). A safe home starts with thorough verification.