Foreigner Center: practice area

Deposits, Contracts and Fraud

Once a foreigner completes alien registration and reports any change of residence, this has the same effect as a Korean move-in report (전입신고), so they are protected by the Housing Lease Protection Act. If your lease has ended and you have not received your deposit back, check an order for registration of lease rights (임차권등기명령) before you move out.

When you should get advice

  • My lease has ended, but the landlord says he will return my deposit only after a new tenant moves in
  • I have to leave Korea soon, but I have not received my deposit
  • I received documents saying the house I live in is going to auction
  • There were clauses in the Korean-language contract that I did not understand
  • I paid for an item online, but the seller disappeared
  • Someone from my own country took my money for an investment and then stopped responding

Relevant laws

Immigration Act Article 88-2(2) (Relationship Between Residence Cards and Resident Registration Cards, etc.)

Alien registration and reports of change of residence under the Immigration Act replace resident registration and move-in reports.

Housing Lease Protection Act Articles 3 and 3-2 (Opposability; Recovery of Deposit)

Once you take possession of the house and complete resident registration, you can assert your lease against third parties from the next day. If you also have a fixed date stamp (확정일자) on the lease contract, you can recover your deposit in an auction or public sale before lower-ranking right holders.

Housing Lease Protection Act Article 3-3 (Order for Registration of Lease Rights)

If you do not get your deposit back after the lease ends, you can apply to the court where the house is located for an order for registration of lease rights.

Statutes are summarized. The official Korean text is available at the Korea Law Information Center (law.go.kr).

Foreign tenants are protected too

The Housing Lease Protection Act protects tenants from the day after they move into the house and complete resident registration. Foreigners complete alien registration instead of resident registration, and when they move, they report the change of residence within 15 days. The Immigration Act provides that this alien registration and report of change of residence replace resident registration and move-in reports.

If you delay reporting your change of residence after moving, you may not be protected during that period. If you get a fixed date stamp on your lease contract, you can recover your deposit ahead of others, according to priority, if the house goes to auction.

What to check before moving out if you have not received your deposit

If your lease has ended and you move your registered residence elsewhere without getting your deposit back, you may lose protection for your current home. So it is safer to apply for an order for registration of lease rights before moving or leaving Korea, and move only after confirming that the registration has been made.

If the landlord still does not return the deposit, we demand its return by certified letter (내용증명) and bring a lawsuit for return of the deposit or seek a payment order. Once you obtain a judgment, you can put the house up for auction to recover your deposit.

If you have to leave Korea

If your period of stay ends and you have to leave Korea while the deposit issue remains, you can appoint a representative and continue the proceedings after you leave. Before leaving, organize the lease registration, your bank account information and a power of attorney.

If a plaintiff with no address in Korea files a lawsuit, they may be ordered, at the other party's request, to provide security for litigation costs (Civil Procedure Act Article 117). If the amount is KRW 30 million or less, the case often proceeds relatively quickly under the small claims procedure.

Contract disputes and fraud

Even if you signed a contract written in Korean, the contract does not become void simply because you did not understand its contents. However, if the other party deceived you about important terms, you can cancel the contract for fraud or claim damages. Keep conversations, advertisements and explanatory materials from before and after the contract.

If you sent money for a secondhand trade or an investment and the other person disappeared, you can file a criminal complaint for fraud. Fraud is punishable by imprisonment of up to 20 years or a fine of up to KRW 50 million (Criminal Act Article 347). To get your money back, we combine a criminal complaint with a provisional attachment on the other person's bank account or assets, and an application for a compensation order in the criminal trial.

If the house has gone to auction

If you received documents saying an auction has started on the house you live in, first check the deadline for demanding distribution (배당요구 종기). People with priority rights to repayment, such as tenants with a fixed date stamp, must file a demand for distribution with the court to receive a distribution (Civil Execution Act Article 88). If you miss this date, you may not get your deposit back.

To receive the distribution, you must hand over the house to the person who bought it at auction (Housing Lease Protection Act Article 3-2(3)). If you are about to leave Korea, consider the auction schedule together with your stay schedule and appoint a representative.

How the Jisan Law Foreigner Center handles your case

  1. 1

    Checking the status of your rights

    We check your registered address, the date you reported your change of residence, the fixed date stamp and the property register to confirm where your deposit stands in priority.

  2. 2

    Lease registration and certified letter

    Before you move or leave Korea, we apply for an order for registration of lease rights and send a certified letter demanding return of the deposit.

  3. 3

    Lawsuit and enforcement

    We proceed with a lawsuit for return of the deposit or a payment order, up to applying for an auction. After you leave, we continue as your representative.

  4. 4

    Responding to fraud

    We write the criminal complaint and pursue a provisional attachment and an application for a compensation order at the same time.

Lawyers handling these cases

  • Hansol Kim

    Hansol Kim Managing Partner

    Former prosecutor (Incheon, Ansan, Hongseong) · University of Toronto

    View profile →
  • Miso Kim

    Miso Kim Partner

    Studied English interpretation and translation (Hankuk University of Foreign Studies) · Former in-house counsel, Wemade

    View profile →

Frequently asked questions

Can foreigners get a fixed date stamp?

Yes. You can take your lease contract to a community service center (주민센터) or use the Internet Registry Office. It only has effect together with alien registration or a report of change of residence.

The landlord says he will return my deposit only after the next tenant moves in.

When the lease ends, the landlord is obliged to return the deposit, and finding a new tenant is the landlord's own matter. However, you should first check whether the lease was properly ended (for example, by giving notice that you will not renew).

If the lawsuit is decided after I leave Korea, how do I get the money?

Your representative can enforce the judgment and send the money received to your overseas bank account. Arrange a power of attorney and your overseas account information before leaving.

Other practice areas at the Foreigner Center

See all 14 practice areas →

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