Overextended landlords are failing to return deposits, hitting younger tenants especially hard and threatening to undermine trust in the system.
"I thought I would be just fine as long as I could get a jeonse deposit loan from the bank," Yoo told Reuters. Jeonse deposit loans more than quadrupled in less than six years through October to 172 trillion won , according to the central bank. That equals 17% of South Korea's outstanding mortgages and 10% of household debt.Still, almost all jeonse loans have guarantees from public enterprises, leaving little credit risk for commercial lenders.
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