In a way, Jeonse tenants occupy a short position in the housing market. If the price of housing falls, the amount of the Jeonse deposit decreases proportionally, although this may not always be the case. In such circumstances, tenants recover the difference if they renew the lease, at least in theory. However, if their landlords don`t settle the difference either with their own money or by borrowing a loan, tenants have difficult options like legal action. On the other hand, if the price of housing increases, the deposit may also increase, and tenants must fill the void if they renew the lease. In times of lower interest rates, the vole (월세) or monthly rent is used. In the case of a Wolse rental agreement, a tenant signs a 1 or 2 year rental agreement and pays a bill on the apartment of up to 10% of the market value. The tenant then pays the monthly rent. However, if you have not registered the lease, you can still set your priority rights over other creditors. Under Korean law, a tenant can prevail over lenders if the tenant can prove that he lived in (1) the property and (2) registered his move with the local government office. However, the tenant cannot claim priority for the total amount of his deposit.
For more information, contact Korea Legal Aid www.klac.or.kr/ or visit lawyers in the korea4Expats Directory. Jeonse (Korean: 전세; Hanja: 傳貰), also known as Chonsei, Key Money Deposit[1] or Key Money,[2] is a unique real estate concept in South Korea, which relates to how apartments are rented. Instead of paying a monthly rent, a tenant pays a lump sum deposit on a rental room of 50% to 80% of the market value. The Wolse system follows the usual monthly rental system with key deposits between 10 and 20 times the monthly rent. The larger the deposit, the smaller the monthly payment. The deposit will be refunded without interest. As with the Jeongsei, the tenant can stay free until the deposit is refunded. Leases usually have a term of two years. Acceptable grounds for termination (for example.
B a diplomatic clause), termination and reimbursement must be indicated in the agreement. The general practice is that tenants should terminate two to three months in advance to terminate the lease. JEONSE/CHONSEI („KEY MONEY DEPOSIT“) is specific to Korea and includes depositing a large sum of money (normally up to 30~60% of the value of the property/price) with the lessor for the duration of the lease (usually 2 years). Once the tenant`s lease expires, the lessor must repay the full amount. This is a very advantageous system for tenants who have the money to make the key contribution which can range from KRW20 million to KRW300 million. Before entering into such an agreement, it is important to check the building register to ensure that there are no lockers or loans on the ground. The tenant is supposed to pay 10% of the total amount when signing the contract and the balance at the time of collection…