[xyzzyz]

It does not. The landlord can just invest the deposit, and then return the principal to the tenant when he leaves, keeping the interest.

[JCharante]

At that point how is it better than the tenant investing the jeonse money and using the returns from the investment to pay rent?

[lifthrasiir]

The very existence of Jeonse affects monthly rents, making Jeonse a worthy candidate to consider to tenants.