Hello, this is attorney Kim Kwang-sik of Cheongchul Law Firm.

On August 31, 2026, the Seoul Central District Court ruled partially in favor of the plaintiffs in both of two damages suits brought by tenants who suffered jeonse (lump-sum deposit lease) fraud against licensed real estate agents, real estate brokerage corporations, the Korea Association of Realtors (한국공인중개사협회), and others. Until now, jeonse fraud litigation has mainly been pursued against landlords or so-called 'straw landlords,' but these rulings are significant in that they recognized the liability of the licensed real estate agents who brokered the contracts at the high ratios of 60% and 70%, respectively.

The first case concerned a lease of a multi-household house in Gwanak-gu, Seoul, where the issue was that the licensed real estate agent gave an explanation that differed from the facts regarding information central to assessing the recoverability of the deposit, such as the value of the building and the senior tenants' deposits. The court of first instance found the agent 40% liable, but the appellate panel raised this to 60%. The second case involved a building in Sillim-dong, Gwanak-gu, that had been registered in trust in the name of an asset trust company (the trustee); although the trust company's consent documents for the lease had been forged, the licensed real estate agent provided them to the tenant as they were without verifying their authenticity. In this case, the appellate court, like the court of first instance, maintained the agent side's liability at 70%.

Taking these rulings as an occasion, today we will review what legal duties a licensed real estate agent bears, what specific breaches of duty the rulings relied on, what a victimized tenant must do to obtain damages, and what tenants and licensed real estate agents should each check before entering into a contract.

[Question]

I was the victim of jeonse fraud. Can I also hold the licensed real estate agent who brokered the contract liable? I heard that a court recently recognized agents' liability of up to 60–70%; in what circumstances is such liability recognized?

[Answer]

1. Background of the Cases — Seoul Central District Court Finds Agents 60% and 70% Liable

Both cases involved typical jeonse fraud harm in which the tenants could not fully recover their jeonse deposits, but the points the court focused on differed. In the first case, the crux was that the licensed real estate agent gave an explanation that differed from the facts about the value of the building and the senior tenants' deposits, the most important information for a tenant in assessing whether the deposit can be recovered. The appellate panel recognized liability of 60%, higher than the 40% found at first instance, reversing the first-instance judgment and rendering its own judgment.

The second case had the distinctive feature of involving trust property. Because the building was registered in trust with an asset trust company, the consent of the trust company as trustee was required to enter into a lease, yet the consent documents had been forged. The licensed real estate agent provided these forged documents to the tenant as they were without verifying their authenticity, and in the end the tenant failed to secure opposing power (대항력) and lost the deposit. Following the court of first instance, the appellate court likewise maintained the agent side's liability at 70%.

▶ Card News Summary The Seoul Central District Court recognized licensed real estate agents' liability at 60% and 70%, respectively, in two jeonse fraud damages suits. The issues were a false explanation (Case 1) and failure to verify forged documents (Case 2), respectively.

2. What Legal Duties Does a Licensed Real Estate Agent Bear?

Licensed Real Estate Agents Act Article 25 (공인중개사법 제25조) imposes on practicing licensed real estate agents a duty to verify, before the brokerage is completed, the condition of and legal relations over the brokered property, restrictions on use under laws and regulations, and the like, and to explain them faithfully and accurately to the client (the duty to verify and explain). This duty is interpreted as not stopping at merely showing a certified copy of the register, but as extending to the substantive information a tenant needs to judge whether the deposit can be safely recovered.

In addition, Licensed Real Estate Agents Act Article 30 (공인중개사법 제30조) provides that where a practicing licensed real estate agent, in the course of brokerage, causes property damage to a transacting party intentionally or negligently, the agent is liable to compensate for that damage. To effectively secure this liability for damages, a licensed real estate agent must, before commencing business, take out guarantee insurance or a mutual aid policy, or make a statutory deposit, and the coverage amount is set at KRW 200 million or more for a practicing licensed real estate agent that is a corporation and KRW 100 million or more for an individual.

▶ Card News Summary Licensed Real Estate Agents Act Article 25 (공인중개사법 제25조) provides for the duty to verify and explain the brokered property, and Article 30 (제30조) provides for liability for damages caused intentionally or negligently. To secure this, enrollment in guarantee insurance or mutual aid of at least KRW 200 million for corporations and KRW 100 million for individuals is mandatory.

3. The Specific Breaches of Duty Recognized in These Rulings

These two rulings are meaningful in that they confirmed the specific content of the duty to verify and explain in a more robust way. The court held that a licensed real estate agent must not stop at merely informing the tenant of the legal relations shown on the register, but must accurately investigate and explain even the information decisive for judging 'whether the tenant can recover the deposit,' such as the value of the building and the senior tenants' deposits. In particular, the rulings suggest that where a landlord owns multiple multi-unit or multi-household houses and runs a rental business through so-called 'no-capital gap investment,' an agent who recognized such warning signs yet failed to properly explain them may be held heavily liable.

In the trust property case, the court went a step further, finding that an agent should not be reassured merely because the trustee's consent documents required for the lease were submitted, but owes a duty of care to verify the authenticity of those documents themselves. Because real estate subject to a trust registration involves more complex legal relations than an ordinary lease and the requirements for a tenant to secure opposing power are more demanding, the ruling is interpreted as requiring a higher level of care from licensed real estate agents.

▶ Card News Summary The court extended the scope of the duty to verify and explain to materials for judging recoverability, such as building value and senior deposits, and, for trust property, required verification of the authenticity of consent documents, further raising the level of care owed by agents.

4. How, and How Much, Can You Recover in Damages?

If a breach of the licensed real estate agent's duty to verify and explain is recognized, the tenant may claim damages not only against the agent personally but also against the guarantee insurer or mutual aid association (such as the Korea Association of Realtors (한국공인중개사협회)) with which the agent is enrolled. However, as noted above, the coverage amount is capped, so that mutual aid payments are guaranteed only up to KRW 200 million for a practicing licensed real estate agent that is a corporation and KRW 100 million for an individual. Where the loss exceeds this limit, it may be necessary to consider compulsory execution against the agent's personal assets for the excess.

It should also be noted that, as in these rulings, the licensed real estate agent's liability ratio was limited to 60% and 70% rather than 100%. The court sets the liability ratio by way of comparative negligence, considering together whether the tenant also had an opportunity to check the contract terms or senior rights, and to what extent the tenant could have recognized the risks of the transaction. Accordingly, from the tenant's perspective, carefully keeping the materials personally checked before signing the contract (the certified copy of the register, the fixed date, the move-in report, etc.) can work in the tenant's favor in later litigation.

▶ Card News Summary A tenant may claim damages against the guarantee insurer or mutual aid association in addition to the agent personally, but there is a coverage limit (KRW 200 million for corporations, KRW 100 million for individuals), and the liability ratio is adjusted through comparative negligence depending on the tenant's own efforts to verify.

5. Significance of These Rulings — Expanding Relief for Jeonse Fraud Victims

Until now, discussion of relief for jeonse fraud victims has focused mainly on criminal punishment of landlords for fraud or on public support under the Special Act on Jeonse Fraud (전세사기 특별법). However, in a considerable number of jeonse fraud cases the landlord is insolvent or has already disappeared, making it difficult to obtain meaningful compensation, and it has been consistently pointed out that this undermines the effectiveness of victims' recovery. These rulings are meaningful in that, by holding licensed real estate agents, who played the role of the substantive provider of information in the course of concluding the contract, substantially liable as well, they widened the path to securing another source of compensation besides the landlord.

That said, this is strictly limited to cases where a specific breach of duty by the licensed real estate agent was proven in the individual case, and an agent's liability is not automatically recognized in every jeonse fraud case. In similar cases going forward, the key issues are expected to be whether the agent knew or could have known of the warning signs and nevertheless failed to explain them.

▶ Card News Summary In jeonse fraud relief, where effective compensation has been difficult because landlords are often insolvent, the rulings are meaningful in securing a new source of compensation in the form of licensed real estate agents. However, this presupposes proof of a breach of duty in the individual case.

6. What Tenants and Licensed Real Estate Agents Should Check

Tenants should, before signing, check not only the legal relations shown on the certified copy of the register but also, without fail, the total amount of senior tenants' deposits across the entire building and the value of the building relative to market price, and it is important to request this from the licensed real estate agent in writing so that it is clearly stated in the verification and explanation statement. If the property is subject to a trust registration, it is safer to obtain the trust ledger (신탁원부) directly and separately confirm whether consent to the lease has been given and whether it is authentic. If harm has occurred, tenants should secure as much material as possible that can prove the content of the agent's explanation, such as the verification and explanation statement received at the time of the contract and text message and call records.

For licensed real estate agents as well, these rulings show that the scope of the duty to verify and explain is expanding beyond simple document checks to substantive risk investigation. When brokering properties where senior tenants' deposits are hard to ascertain, such as multi-household and multi-unit houses, or transactions with complex legal relations, such as trust property, directly verifying the authenticity and currency of the relevant documents and keeping a record of the basis is the way to protect oneself in future disputes.

▶ Card News Summary Tenants should obtain written confirmation of senior deposits and building value and, for trust property, check the trust ledger directly, while licensed real estate agents should, the riskier the property, directly verify the authenticity of documents and keep a record of the basis.

These rulings show that the center of gravity of jeonse fraud relief is expanding beyond landlords to the licensed real estate agents who brokered the contracts. For tenants, carefully going through the pre-contract verification steps remains the surest preventive measure, but if harm has already occurred, it is worth also examining whether the licensed real estate agent breached a duty.

Cheongchul Law Firm provides legal advice across the full range of real estate transactions, from damages suits against landlords and licensed real estate agents on behalf of jeonse fraud victims and handling claims for mutual aid and guarantee insurance payments, to pre-transaction review of and advice on legal relations over real estate and dispute response advice for licensed real estate agents and brokerage corporations. If you need a consultation regarding jeonse fraud, please feel free to contact us at any time.