If you’re thinking of renting a house in Korea, you’ll come across the term “jeonse.” This is a unique system of the Korean housing rental market. But did you know that there are frauds that exploit these systems? Here’s what you need to know about charter fraud and how to avoid it.

1 What is a charter fraud?

Charter fraud is a fraudulent method of impersonating the landlord to receive a security deposit from the tenant. Sometimes it is not the person impersonating the landlord, but the real landlord who does the act himself.

It is a serious crime that can cause a lot of financial and emotional damage to the victim.

2. How does it work?

Scammers usually advertise rental properties online or through realtors, claiming that they are very cheap compared to other properties.
They may require a lower than usual deposit to attract more potential tenants.
When someone shows interest, they introduce the house, show the property, and take a cash deposit.
Sometimes they offer fake contracts or receipts to make it look more legit.

3. What are red flags?

Spotting charter scammers isn’t always easy, but there are some warning signs to look out for. for example:

• The landlord seems to be too eager to rent and does not ask questions of the person renting the house and does not properly screen the tenant.
• We ask for a deposit in cash only and do not provide official receipts or documents.
• The property is in a great location or has the desired features, but the rent is too low for similar properties.
• The landlord refuses to provide a copy of the ownership certificate (certified copy) of his or her house or refuses to provide information on tax arrears, etc.

4. How to protect yourself?

To avoid getting caught in a charter scam, you can take the following precautions:

• In Korea, real estate brokers are called certified brokers. We ask for a copy of the license to confirm that the person introducing the house is the person with the license.
• Request official documents such as ownership certificates, lease agreements, tax payment certificates, and confirm with the authorities.
• Thoroughly inspect the property and take photos or videos as evidence.
• Use a reputable real estate agent or a website that provides an escrow service to keep the deposit until the contract is signed and the keys are exchanged.
• Trust your instincts and don’t rush into deals that seem too good to be true.

Charter fraud is a serious problem in Korea, but with awareness and caution, you can protect yourself from becoming a victim.

Always remember that prevention is better than cure and do not hesitate to seek help or report any suspicious activity to the police or consumer protection agencies.