South KoreaWhat is the maximum priority repayment for small-deposit?
Small-deposit tenants in South Korea are entitled to priority repayment of up to ₩5 million for deposits under the Housing Lease Protection Act.
What the Law Says
South Korean law grants small-deposit tenants special priority repayment rights when a landlord becomes insolvent or the property is auctioned. This protection applies only to qualifying registered leases with modest deposits.
Under the Housing Lease Protection Act, a tenant who has registered their lease and paid a deposit of ₩5 million or less may claim priority repayment — ahead of most creditors — if the leased dwelling is sold at auction or the landlord files for bankruptcy.
The priority right applies only to leases with a term of three years or less, and the lease registration must have been completed before the auction commencement date or insolvency proceedings.
The tenant must file a written claim for priority repayment with the court handling the auction or insolvency within one month after the auction notice is posted or the insolvency petition is filed.
Statutory TextWhere a tenant has registered a housing lease contract and the deposit amount is not more than five million won, the tenant shall be entitled to priority repayment of the deposit up to five million won.
— Housing Lease Protection Act, s. 12 — Priority Repayment Right for Small-Deposit Tenants
Statutory TextThe priority repayment right under Article 12 shall apply only to lease contracts with a term of three years or less.
— Housing Lease Protection Act, s. 12(2)
What to Do
Register your lease agreement at the local Legal Affairs Bureau before moving in.
Confirm your deposit is ₩5,000,000 or less and your lease term is ≤3 years.
If the property is auctioned or landlord becomes insolvent, file a priority repayment claim with the competent court within 1 month.
Attach proof: registered lease certificate, deposit receipt, and identification.
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.