The death of a landlord renting out over one-thousand units of multiplex housing and studio apartments in the Seoul metropolitan area has caused a major setback in the return of lump-sum rental deposits to tenants.

According to the Korea Housing and Urban Guarantee Corporation on Monday, there has been a delay in subrogated payments of lump-sum “jeonse” deposits to tenants subscribed to the deposit-return guarantee insurance following the landlord's death in October.

Subrogated payments involve the return of a rental deposit by the public company in place of the landlord after the tenant notifies the landlord of their intention to end the lease. The company then later exercises the right to indemnity.

However, because the landlord, surnamed Kim, has died, many of the tenants are struggling to follow the notice procedure, with at least 200 of Kim's tenants yet to receive their deposits.

It is also unlikely that any of his family members will inherit his assets after his properties were seized following his failure to pay six-point-two billion won in comprehensive real estate taxes last year.

On social media, land minister Won Hee-ryong assured the tenants that they are not required to move out of their current homes during the related legal proceedings and that their loan guarantees will be extended.