Hana Bank offers free jeonse fraud insurance covering up to W300m for young renters

Hana Bank said Thursday it will provide free insurance covering up to 300 million won ($212,000) in jeonse fraud losses for young customers who use its jeonse home loans.

The bank jointly developed the product with Hana Non-life Insurance, covering customers between the ages of 19 and 34 who apply for a Hana Bank jeonse loan and meet Hana Non-life Insurance's underwriting criteria. Hana Bank will cover the full premium cost.

The insurance compensates up to 300 million won for fraud losses arising during the jeonse and monthly rent contract process and in the early stages of move-in. Covered risks include landlord impersonation, contract fraud involving forgery or deception, falsification of registry documents and title defects, and double-contract schemes.

If a tenant's rights are violated during a lease and a financial loss results, the policy pays out the full deposit or down payment actually lost, up to the coverage limit. A notable feature is that the product extends protection to the period between contract signing and actual move-in — a gap that existing title insurance products had left uncovered.

However, because the product covers losses caused by fraudulent acts, cases in which a landlord fails to return a deposit due to financial deterioration after the contract ends are excluded from coverage. To maintain tenant rights, customers must complete their resident registration on the contract start date, and coverage may be restricted if they move out without authorization before the lease expires.

"This free support service is part of our commitment to inclusive finance and to helping young people achieve residential stability," a Hana Bank official said. "We will continue developing differentiated financial services so that young people struggling with housing insecurity can settle into their homes with peace of mind."