{"id":2201202,"date":"2023-05-30T19:33:58","date_gmt":"2023-05-30T10:33:58","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201202"},"modified":"2023-05-31T20:50:35","modified_gmt":"2023-05-31T11:50:35","slug":"how-sophisticated-scams-are-jeopardizing-south-koreas-unique-housing-system","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/05\/how-sophisticated-scams-are-jeopardizing-south-koreas-unique-housing-system\/","title":{"rendered":"How sophisticated scams are jeopardizing South Korea\u2019s unique housing system"},"content":{"rendered":"
South Korea uses a real estate system found nowhere else, in which tenants typically deposit between 60 to 80% of the property\u2019s value as part of a two-year contract. This so-called jeonse system has the benefit of allowing tenants to live rent-free, while landlords can use the large deposits to engage in various financial activities.<\/span><\/p>\n But despite these advantages, a wave of fraud cases that have swept the country have underscored major flaws in jeonse practices, demonstrating tenants\u2019 vulnerability to scammers and threatening to undermine a system that millions rely on for housing.<\/span><\/p>\n The issue has become a focal point of political wrangling, and while the South Korean government has proposed various solutions, each risks creating new problems that could put the state on the hook, harm creditors\u2019 bottom line, or leave victims out in the cold.<\/span><\/p>\n