charter scams and who's affected
the charter scam is spreading across the country, and many people are worried. as of last month, the total number of victims nationwide was 35,246. what's worse is that about 76% of the victims are young people under the age of 40. this means that people who have difficulty saving money, such as newlyweds, are being hit hard.
however, experts say you can significantly reduce your risk of being a victim of charter fraud by doing a few things before you travel. here's a step-by-step guide to the key information you need to check to avoid charter scams.
pre-contract checks
the first step in preventing rental fraud is to do your homework before signing a contract.
check the housing market price
if the security deposit on the home you're looking at is too low compared to the market value of the neighborhood, you should be suspicious. a listing that's much lower than the market value could be a red flag. be sure to check the market value of the home in your area, either through the Multiple Listing Service or a rental app.
you can even look up the real estate agent and the landlord's history of tax delinquencies on the app. It's also a good idea to take advantage of deed change alerts.
checkpoints at signing
on the day of signing, you need to be more thorough.
required access to the land register
you must read the deed before and after you pay the balance. if you see any of the following terms, it's a safe bet to avoid the contract
a lis pendens means that the sale is prohibited due to pending litigation. sold at auction means the house has gone to auction. if it's labeled as a neighborhood living facility, it's not residential and you can't get renters insurance. If there's a lien on the property, it's secured by a loan. if there is a deed of trust, the contract is void without the trust company's consent. if you're in foreclosure or repossession, your rights are restricted due to a debt. if there's an injunction against the property, it means that the previous tenant has a history of not getting their security deposit back.
verify the landlord's identity
make sure that the person on the other end of the contract is the actual owner on the public registry. if it's a proxy agreement, you'll need to see a power of attorney, proof of seal, and even ID.
write the terms and conditions
if you promised to sign a security deposit return guarantee with the landlord, make sure to include it in the terms and conditions. It's a good idea to add that if you don't honor your promise, you can cancel the contract and return the security deposit in full.
required post-contract actions
don't rest easy just because you've signed a contract. post-contract actions are key to preventing charter fraud.
confirmation date and move-in report
immediately after signing the contract, get the confirmation date from the community center or court registry, and report your move-in to secure your right of first refusal. the right of first refusal is the right to get your deposit back first, even if the house goes to auction. you can register to move in at your local civic center or online at GOV.KOREA24.
sign up for a security deposit return guarantee
if you sign up for a rental deposit return guarantee, you can get your deposit back from a guarantee organization such as HUG, HF, or SGI even if the landlord does not return it after the contract ends. if you're a young adult, you can get up to 400,000 won in security deposit assistance, so be sure to take advantage of it.
apply for an order to register the tenancy
if you move out without getting your security deposit back from your landlord, you will lose your right of defense and priority. if you've been a victim of subletting fraud, be sure to apply for a tenancy registration order before moving out.
the Rental Fraud Prevention Act of 2026
the government will provide more support to prevent rental scams.
you can get safe contract consulting services from the Rental Fraud Victim Support Center. this is a service that reviews the registration certificate and contract with prospective tenants before signing a lease.
the center also offers on-site youth housing counseling. they provide personalized information on youth housing policies and support projects, as well as rental fraud prevention education.
frequently Asked Questions
Q. what is the first thing I should do to prevent charter fraud?
A. The first thing to do is to check the market price of a home before signing a contract, either through a safe rental app or a real estate listing system. be suspicious of any listing that is too cheap compared to the market price.
Q. What items should I check in the land registry?
A. Check for injunctions, auction decisions, liens, foreclosures, and orders to register tenancies. If there are any of these, it's safe to avoid the property.
Q. where do I sign up for a security deposit return guarantee?
A. You can get it from HUG Housing and Urban Guarantee Corporation, HF Korea Housing Finance Corporation, and SGI Seoul Guarantee Insurance. young adults can also get support for the deposit.
Q. which should I do first, the confirmation date or the move-in report?
A. It is recommended to get the confirmation date first and complete the move-in notification afterward. Both must be completed to secure priority reimbursement rights.
Q. what should I do if I've already been scammed?
A. Before you move out, make sure to apply for an order to register the tenancy so that you can maintain your rights of defense and priority.
wrapping Up
the key to preventing rental fraud is to check the market price before signing a contract, read the land registry when signing a contract, and purchase a confirmation date and rental guarantee insurance after signing a contract. By following these three points, you can greatly reduce the risk of being a victim.
if you found this article helpful, please let us know in the comments. if you know someone who is about to sign a rental contract, please share this article with them.