Zigbang Introduces New Brokerage Service, Including Jeonse Fraud Protection

South Korean proptech ZigBang has introduced a brokerage service that guards tenants against jeonse fraud and facilitates property transactions.

Jeonse is a secure lump sum deposit that renters in South Korea pay to landlords in lieu of monthly rent. The lump sum constitutes between 50%-80% of the rental property's market value—but it is a scheme that has been widely used for fraud at the expense of renters. It has been identified as the reason behind three tenant suicides in the Korean city of Incheon this year.

ZigBang's 'guardian' service will offer insurance tenants against jeonse fraud whereby "the real estate agent will bear the responsibility for incidents that may occur due to intention or negligence through a specialized brokerage subsidiary", according to the company.

The brokerage service will also handle the property transaction process from property search to signing contracts, with professional on-site verifications, connecting clients with certified agents, risk analysis, and contract signing.

ZigBang operates property verticals Realty.Daum.net and Hogangnono.com in South Korea, but recently expanded to Saudi Arabia as part of a "Smart City" project.

Meanwhile, a ZigBang IPO has been mooted to be on the cards within the next three years.