South KoreaI was a victim of jeonse fraud. How do I respond?
Report the fraud to police immediately, file a civil claim for restitution, and apply for emergency protection of your jeonse deposit under the Jeonse Protection Act.
What the Law Says
South Korean law provides specific protections for victims of jeonse fraud, including criminal penalties for fraudsters and mechanisms to recover or safeguard deposits.
Jeonse fraud occurs when a landlord collects a large lump-sum deposit (jeonse) but fails to return it upon lease termination—or disappears without fulfilling obligations. Under the Act on the Protection of Jeonse Deposits, tenants may petition the court to freeze or prioritize their deposit over other creditors’ claims.
The Criminal Act criminalizes fraud involving jeonse deposits. Anyone who obtains property or financial benefit by deceit—including false promises about lease terms or deposit repayment—commits fraud punishable by imprisonment or fines.
The Jeonse Protection Act also establishes a government-backed deposit protection system for eligible tenants, administered by the Korea Housing Finance Corporation (KHFC), up to ₩50 million per household.
Statutory TextWhere a tenant has paid a jeonse deposit and the lessor refuses to return it without just cause, the tenant may apply to the court for an order to prohibit disposition of the leased property or to secure priority repayment.
— Act on the Protection of Jeonse Deposits, s. 12 — Measures for Securing Repayment of Jeonse Deposit
Statutory TextAny person who, by means of deception, induces another to deliver property or to make a payment shall be punished by imprisonment with labor for not more than ten years or by a fine not exceeding twenty million won.
— Criminal Act, s. 347 — Fraud
What to Do
File a police report immediately at your local police station — fraud must be reported within 30 days to preserve evidence and investigative options.
Submit a petition to the district court under the Jeonse Protection Act (s. 12) to freeze the landlord’s assets or secure priority repayment rights.
Apply to the Korea Housing Finance Corporation (KHFC) for deposit protection coverage — requires proof of lease registration and fraud documentation.
File a civil lawsuit for restitution and damages within 5 years from the date the fraud was discovered.
Register your lease with the local Legal Affairs Bureau (if not already done) — unregistered leases limit legal remedies.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.