Landlords can apply now, but tenants cannot move in immediately
South Korea's Ministry of Land, Infrastructure and Transport and the Korea Housing & Urban Guarantee Corporation (HUG) announced the first landlord recruitment notice for their rent security trust on November 4, 2026. Landlord applications are open on an ongoing basis from that date. That is not a promise that an applicant's home is approved or that a tenant can move in now. HUG plans to verify homes, arrange a three-party contract and collect the required funds before staggered move-ins beginning in January 2027. The cover is an AI-generated concept image, not a picture of a real property or contract.
Where the deposit-equivalent payment goes
The agreement involves the landlord, HUG and the tenant. The tenant deposits an amount equivalent to a tenancy deposit with HUG, not with the landlord. HUG manages that money, pays the landlord an agreed monthly return and returns the amount to the tenant when the term ends. The government describes the landlord–tenant lease as a form of rent without a legal deposit, because the landlord does not receive or owe the return of the deposit-equivalent amount. That wording does not mean the tenant needs no cash at the outset.
Under the announced procedure, the tenant pays 10% of the deposit-equivalent amount at contract signing and the other 90% at move-in into a designated HUG account. A tenant should identify the official HUG process and account from the contract before transferring any funds. A text message, listing or third-party bank account cannot be authenticated by this article. According to the ministry, the underlying lease remains subject to the Housing Lease Protection Act, including applicable renewal, rent-increase and occupancy protections.
The home has to pass screening
The HUG notice imposes no general income or age limit on landlords and accepts both individuals and companies, but tenants must be individuals. A landlord's spouse or direct ascendants or descendants cannot participate as tenants. An individual landlord must use a licensed real-estate broker for the lease. The property and rental terms are restricted. The home's price must be KRW 2 billion or less, and existing senior debt must be no more than 80% of the home's price. Tax arrears or other conditions that threaten residential stability can disqualify a property. The deposit-equivalent amount must also be within the assessed market jeonse level. HUG will examine the conditions after an application; a landlord's submission is not a screening result.
The lease must run for at least two years, and the HUG deposit period follows the same lease term. There is a full-jeonse-style option with no additional monthly payment by the tenant. A limited deposit-plus-rent form is also allowed. The announcement describes the latter as permitting tenant-paid monthly rent of less than 1/240 of the deposit-equivalent amount, subject to checks of the converted jeonse price. Any such additional rent is paid directly to the landlord, separately from the money held by HUG. A property described as participating in the trust therefore need not have zero monthly cash outflow for the tenant; compare the actual contract terms.
Where landlords apply, and what is still only a plan
Landlords may apply from November 4. The live HUG recruitment notice and application page permits online applications by individual landlords; both individuals and companies may apply in person at the Rent Security Trust Centre or HUG branches. The branch need not be in the property's area, and a tenant need not already be identified. If no lease is signed within six months of application, the landlord must apply again. Submission is followed by screening and does not itself establish a contract or move-in date. HUG says the dedicated contract form is planned for portal publication later in November.
The announced 4.35% annual pre-tax return is the rate stated for this recruitment round's landlord agreement. The rate for a contract is the most recently announced rate when that contract is signed; later rate announcements may change the rate for later new contracts. Proposed landlord tax relief, including a 50% income-tax or corporate-tax credit and rural special-tax exemption, requires legislative changes and is not an automatically available benefit on announcement day. Dedicated financing for tenants and access to other loans depend on future implementation and the applicant's separate eligibility. Do not base a financing or tax decision on a proposed benefit alone.
A practical check before signing
Tenants should confirm the official property listing and HUG process, the amount due at signing and at move-in, whether the contract has additional rent, and the expected move-in date. Landlords should check the home valuation, senior debt, tax status and any existing tenancy before applying. The ministry's Q&A says a home with an existing lease can enter only after that lease has ended or been terminated by agreement and the original deposit has been returned. It is not a mechanism for instantly replacing an existing tenant's contract.
HUG says it will return the tenant's deposited amount at the end of the agreement. The same release also allows HUG to withhold part temporarily if a landlord raises a reasonable objection, such as a claim concerning damage. The separate dispute process and release conditions therefore matter; a blanket promise of immediate full payment in every scenario would overstate the announcement. Read HUG's current recruitment notice and the dedicated contract before sending money or advertising a home as approved.
The key distinction is timing: landlord intake began on November 4, 2026; tenant move-ins are planned in stages from January 2027. The exact conditions for a particular home and tenant have to be established through HUG, not inferred from the policy announcement.
About the Author
The Life Mokcha editorial team reviews official announcements and primary sources to explain practical information. Check the linked original sources for applicable terms and later updates.
