Prevent risk of lease fraud by managing jeonse deposits publicly... Operating profits are paid to the lessor

Prevent risk of lease fraud by managing jeonse deposits publicly... Operating profits are paid to the lessor

(Sejong = Yonhap News) Reporter Oh Jin-song = The Jeonse and Monthly Rent Safe Trust Center has opened to provide support from consultation to contract and follow-up management to landlords and tenants who want to participate in the Jeonse and Monthly Rent Safe Trust projects.

The Ministry of Land, Infrastructure and Transport announced that First Vice Minister Kim Lee-tak held a launch ceremony for the 'HUG Jeonse and Monthly Rent Safe Trust Center' in Yeouido, Seoul on the afternoon of the 22nd with Choi In-ho, President of Housing and Urban Guarantee Corporation (HUG), President of Korea Real Estate Association, President of Korea Housing Construction Association, and Director of Korea Financial Investment Association, and inspected the progress of the project.

The jeonse and monthly rent relief trust project is a project in which the public manages and supplies jeonse and monthly rent houses on the market.

Unlike the existing method where the tenant pays the deposit directly to the landlord, the public manages the deposit to prevent the risk of lease fraud.

Tenants can live with housing costs that are relatively lower than monthly rent, and landlords can receive regular income without the risk of rent arrears by receiving operating profits earned by investing the public rent every month.

The public sector creates a ‘housing supply revitalization fund’ using managed deposits and invests in HUG guarantee project financing (PF) businesses. The Ministry of Land, Infrastructure and Transport believes that this will contribute to not only stabilizing the rental market but also promoting housing supply.

The Safe Trust Center, which opened on this day, provides information on business details to landlords and tenants interested in the business and supports the entire process from consultation and application reception, contract support, and follow-up management.

Vice Minister Kim said, "The monthly rent relief trust project is a virtuous housing cycle business model that can promote housing supply while providing a stable rental environment for both landlords and tenants. Today will be the starting point."