What is JeonSafe?

We are a Seoul-based startup and international team of entrepreneurs aware of the current Jeonse fraud issue hurting Koreans and the looming housing crisis in South Korea. Out of necessity we have created a viable solution to completely prevent Jeonse (전세) fraud, and to help stabilize the broader housing market. Since June 2023 it has been concluded that there have been over 17,000 Jeonse fraud victims, with the first 10,000 losing over 1.2 trillion Korean won. JeonSafe provides a safe way for tenants to partake in Jeonse contracts without risk of losing housing deposits and life savings, and also protect landlords by ensuring they won’t be left with a ‘tin can Jeonse’ and a liquidity crisis if their property value decreases. We provide landlords consistent monthly rent payments from a Jeonse deposit in a first of its kind hybrid lease contract.

How does it work? Our company connects landlords and tenants using traditional channels such as the real estate office of their choosing. The contracts and all negotiations or disputes will still be handled by the real estate agent where the contract is made, so nothing changes from the current system. JeonSafe allows rent-seeking landlords to match with Jeonse tenants for the first time ever. When the deposit money or Jeonse loan is received by the real estate office they will work with us to place the money into a secure high yield savings account which will then pay rent to the landlord on a monthly basis. The percentage yield on the savings account is locked for the same duration as the lease, 1-2 years, so the rental payment will always be guaranteed and falling interest rates will not impact landlords or tenants. If the yield has excess interest then JeonSafe will collect this as profit when the contract expires and we use this to cover our administrative costs to assist customers. A certain predetermined agreed upon amount of the Jeonse deposit equal to 1-3 months of rent will be designated as the security deposit to be used in the case of various infractions only if deemed necessary.

This new system will soon become the industry standard lease type, and we aim to have JeonSafe be a widely used term and a household name. Our new lease type will reverse the recent decline in popularity of Jeonse contracts, and it will also prevent landlords from going bankrupt and tenants from losing their large deposits.