More Damage to Whom?: An Exploratory Examination of Health and Credit Status Changes Among Households at Risk of Losing Rental Deposit in Gangseo-gu, Seoul

Since 2022, there has been a growing concern about massive amount of losing rent deposit, which is called Jeonse fraud in South Korea. In response to the growing risk, a series of policies and institutional improvements have been implemented. While previous studies have focused largely on examining the descriptive patterns of individual losing-rent-deposit cases and potential influencing factors, there is little research on under what conditions households placed at the risk of losing rent deposit are more adversely affected. We examine which household characteristics are likely to exacerbate mental health, physical health, and credit status of households facing the rent deposit crisis, particularly investigating how health and credit status changes differ depending on the different types of situations and different responses to such risk. We analyzed survey data collected from 249 households in Gangseo-gu, Seoul, that are placed at the risk of losing rent deposit. The analysis revealed that households not eligible for emergency livelihood support, with annual incomes not exceeding 70 million won, and with higher percentages of rental deposit loans were likely to indicate deterioration in mental and physical health. Furthermore, households applying for publicly supported loans were found to have experienced more deterioration in mental health or credit status. Particularly, having the rental deposit return guarantee insurance mitigated the deterioration in mental health, suggesting the importance of preventive policy measures to minimize invisible damages to victims.