[English Translations for Global Clients – Success Case]

1. Case Overview

The client (tenant) had been living in an apartment under a jeonse lease arrangement after paying a substantial security deposit.

However, once ownership of the property changed hands, the new landlord (the debtor) was discovered to have debts exceeding 6.4 billion KRW, placing the property at imminent risk of seizure.

The landlord then informed the client that he might not be able to return the deposit and asked the client to move out.

Concerned, the client attempted to apply for deposit reimbursement through the Korea Housing & Urban Guarantee Corporation (HUG), but the claim was rejected due to insufficient documentation.

When the landlord ultimately refused to return the deposit, the client sought legal help from Taelim.

2. Taelim’s Assistance

Taelim’s attorneys first confirmed that the landlord had a clear legal obligation to return the security deposit to the client.

Instead of initiating a full lawsuit—which would require considerable time—Taelim utilized a faster legal remedy known as a “payment order,” taking advantage of the fact that the client’s claim for the deposit was indisputable.

This procedure grants a court order with the same effect as a judgment but in a significantly shorter timeframe.

3. Case Outcome

The court accepted Taelim’s application and issued an order requiring the landlord to immediately return the deposit to the client. 

As a result, the client secured the right to recover the deposit without undergoing a lengthy or complicated trial process.

4. Significance of the Judgment

When a landlord avoids returning a deposit citing financial difficulty—and especially when efforts through HUG or other complicated procedures fail—swift and accurate legal action is crucial.

This case highlights how effective and timely the “payment order” system can be for recovering jeonse deposits.

**

If you’re facing a similar situation,

don’t hesitate to reach out to Taelim Law Firm for legal assistance.