[단독] LH also strengthens the standard for charter rental guarantee insurance subscription, to the level of HUG… New standard announced next month

In the future, the subscription standard for jeonse rentals operated by Korea Land and Housing Corporation (LH) will increase. This is to prevent cases of abuse of LH charter rental by some landlords as the standard for subscribing to the rental deposit return guarantee of the Urban Housing Guarantee Corporation (HUG) has recently increased, and to reduce the guarantee accident of non-return of the rental deposit.

As a result of our coverage on the 25th, it was found that LH is preparing a plan to raise the standard for charter rental guarantee insurance to the level of HUG. LH Jeonse Lease is a system in which when a move-in target finds a house to live in, LH signs a global contract with the home owner and re-lease it to the move-in target. Currently, SGI Seoul Guarantee is used as a guarantee insurance company.

An LH official said, “Since HUG’s guarantee insurance subscription standards have recently been raised, we want to raise the LH charter rental and guarantee insurance subscription standards to a level that corresponds to the HUG standards.” It will be announced next month at the earliest.”

As of the 1st of this month, HUG has strengthened the standard for signing up for the jeonse deposit return guarantee from ‘100% or less’ to ‘90% or less’. In addition, the rate of application of the public price when calculating the housing price was also applied from 150% last year to 140% this year. Accordingly, in order to subscribe to guarantee insurance in the future, the deposit must be set within 126% of the official price (140% of the official price application rate X 90% of the jeonse rate).

However, in the case of the current LH jeonse rental, you can join even if the jeonse deposit is set at up to 153% of the officially announced land price. It is okay to set the deposit higher than the HUG standard (publicly announced price X 126%). As a result, cases of choosing LH charter rental as a means to raise the deposit, centering on some landlords, have arisen from various places, raising concerns.

In fact, a 52.46㎡ exclusive area for G Villa in Gyeongseo-dong, Seo-gu, Incheon was advertised as being available for LH charter rental with a charter deposit of 115 million won. The official price of the sale as of this year is 76.9 million won. For general charter loans, in order to sign up for HUG guarantee insurance, the deposit must be set within KRW 96.89 million (76.9 million KRW X 126%), but based on LH charter rental, up to KRW 117.65 million (76.9 million KRW X 153%) is possible. Based on this, the deposit is set as high as possible. In an Internet community that introduces LH charter rental properties, there are numerous listings that are promoted with a deposit in accordance with the LH charter rental standard.

An official from an authorized brokerage agency in Incheon said, “The standard for deposit loan guarantee insurance has been raised due to the issue of charter fraud, and landlords have no choice but to lower the deposit.” There are a lot of inquiries from ,” he hinted. The supply of LH charter rentals from January to April this year was counted at 15,673 households nationwide. It has already reached 41% of the total supply of 38,096 households in the previous year.

The problem is that at the present time when the jeonse price is falling, the larger the jeonse deposit, the greater the damage to the reverse jeonse.

The sales price based on the HUG Safe Charter App for the above listing was found to be at a minimum of 117 million won and a maximum of 143 million won. Based on this sales price, the jeonse rate of the sale reaches 80-98%. Normally, in the industry, if the jeonse rate exceeds 70%, it is judged that there is a risk of jeonse in a can. This means that damages from accidents that do not return the deposit can increase in the future.

In fact, it was found that the number of LH charter rental deposit non-return accidents is increasing every year.

According to Democratic Party lawmaker Hong Ki-won’s office, as of the end of March, there were 1,193 accidents involving non-return of deposit last year, totaling 52.427 billion won. The number of unreturned accidents and amounts is increasing every year, including △ 40 households in 2019, KRW 1.15 billion, △ 175 households in 2020, KRW 3.2 billion, and △ 464 households in 2021, KRW 12.775 billion.

An LH official said, “If the criteria for joining LH charter rental are strengthened this time, it is expected that charter fraud and non-return of deposits will significantly decrease.”