![[HOAM Foreign Law Column] Foreclosure & Auction: Is My Deposit Safe?](/_next/image?url=https%3A%2F%2Fagqdgbuateknhwpocrgu.supabase.co%2Fstorage%2Fv1%2Fobject%2Fpublic%2Fasset-generation%2Fd5640e14-e5b7-41b3-800e-609cb8329013%2Fagent-generated%2F1784525235540_2.jpg&w=3840&q=75)
If a foreign tenant is 'Last in Line' behind heavy bank mortgages, they may feel their deposit is lost in an auction. However, the Korean Housing Lease Protection Act provides a powerful 'Safety Net' called Minimum Deposit Protection (Choe-uso-byeonje-geum). This rule ensures that small tenants receive a portion of their money back before anyone else—even before the bank.
1. What is the 'Minimum Protection'?
This rule is designed to protect the basic living security of low-income tenants. If your deposit falls below a certain legal threshold, the court mandates that a fixed portion of your deposit be paid to you first, regardless of when you signed the contract or if there are massive senior mortgages.
2. Thresholds and Guaranteed Amounts (2024 Standards)
The threshold and the guaranteed refund amount vary significantly by region. For example:
- Seoul: If your deposit is 165 million KRW or less, you are guaranteed up to 55 million KRW first.
- Metropolitan Areas (Incheon, Gyeonggi): If your deposit is 145 million KRW or less, you get up to 48 million KRW.
- Other Cities: Threshold 85 million / Guaranteed 28 million KRW. Note: These amounts change periodically based on government decrees.
3. Mandatory Requirement: The Opposing Power
To receive this 'First Priority' payment, you MUST have established your Opposing Power (Move-in + Residence Report) BEFORE the official 'Auction Registration' is recorded in the register. Unlike the 'Priority Repayment Right,' you do not strictly need a Fixed Date for this specific minimum protection, but it is highly recommended to have it anyway for full coverage.
4. The 1/2 Value Rule
The law limits the total amount of minimum protection payouts to one-half of the property's auction value. If a building has many small-deposit tenants, the guaranteed amount might be reduced proportionally if the total exceeds 50% of the building's sale price.
5. Why Hoam Law Firm?
Many foreign residents in villas or studios (one-rooms) fall within these thresholds but don't know how to claim their money during an auction. Hoam Law Firm helps you identify if you qualify for 'Minimum Protection' and manages the 'Demand for Distribution' (Baedang-yog-gu) process. We ensure that you get your emergency funds back quickly so you can find a new home without becoming homeless.
#MinimumDepositProtection #Choeusobyeonjegeum #KoreaRentalLaw #AuctionProtection #ForeignerHousingSafety #TenantRights #HoamLawFirm