Korean Housing Terms Every International Student Should Know (Part 3: Rights & Safety)
Korean Housing Terms Every International Student Should Know (Part 3: Rights & Safety)
A FindHouse Korea Settling-In Guide
In Part 1 and Part 2, we covered rental types and the paperwork that protects your security deposit. Now let’s take it a step further—the terms that come up when things get complicated: existing loans on a property, ownership structures, and your rights as a tenant.
These are the terms that matter most when you’re trying to distinguish a safe deal from a risky one.
1. Geun-jeodang — Existing Mortgage / Collateral Loan
In a nutshell: A loan the landlord has already taken out using the property as collateral — listed on the property registry.
Why it matters: A property with a large existing loan is riskier. If the landlord cannot repay the loan, the property could be seized—and depending on the amount, your security deposit may not be fully protected if you are not the first in line.
What to check: Compare the amount of the Geun-jeodang to the property’s value. As a rule of thumb, the lower the existing loan relative to the property price, the safer your deposit.
Related terms: Property Registry, Deposit Return Guarantee Insurance
2. Trust Property
In a nutshell: A property where legal ownership has been transferred to a trust company—meaning the person renting it to you may not be the actual legal owner.
Why it matters: If a property is held in trust, you may need separate written consent from the trust company, not just the person showing you the apartment. Skipping this step is a common reason tenants lose their entire deposit. If you see “신탁” on a property registry, ask specifically about this before signing anything.
Related terms: Property Registry, Lease Contract
3. Jeonse Bojeunggeum Banhwan Bojeung Boheom (Deposit Return Guarantee Insurance)
In a nutshell: Insurance that guarantees you’ll get your deposit back—even if your landlord refuses or is unable to return it.
Why it matters: This is one of the strongest safety nets available to tenants. If your landlord doesn’t return your deposit when your lease ends, the insurance provider pays you directly and then recovers the money from the landlord—so you’re not the one left chasing payment.
Good to know: This is generally available to foreign residents as well, though the exact conditions may depend on your visa type and the specific insurance provider (HUG, SGI, etc.)—always confirm your eligibility before relying on this coverage.
Related terms: Deposit, Existing Mortgage
4. Right to Renew (Gyeyak-gaengsin-cheonggu-gwon) — Right to Renew
In a nutshell: A tenant’s legal right to request a one-time renewal of their lease under the same terms, with rent increases capped by law.
Why it matters: If you want to stay longer, this right limits how much your landlord can raise your rent at renewal—usually capped at 5%. Important: This cap only applies when you’re renewing an existing contract—a brand-new lease (your very first contract) is priced freely by the market, with no cap.
Related terms: Lease Contract, Monthly Rent
Quick Recap
Term Korean What it protects you from Existing Mortgage 근저당 Losing your deposit if the property is seized Trust Property 신탁 Signing with someone who isn’t the real owner Deposit Return Guarantee Insurance 전세보증금 반환보증보험 A landlord who won’t return your deposit Right to Renew 계약갱신Cheonggu권 Unlimited rent increases at renewal
The Golden Rule
Before you sign anything: check the property registry for 근저당 and 신탁, and ask whether 전세보증금 반환보증보험 is available for your contract. These three checks catch the vast majority of rental risks before they become real problems.
FindHouse Korea helps international students find verified housing in Korea—in your own language, without the confusion.