548 Additional Jeonse Fraud Victims Recognized

The Ministry of Land, Infrastructure and Transport announced on July 8 that it held three full meetings of the Jeonse Fraud Victim Support Committee last month, reviewing 1,409 cases and designating 548 of them as jeonse fraud victims or related parties.

Of the 548 approved cases, 505 were new applications (including reapplications). In 43 cases, applicants filed objections to previous decisions, and after further reviewing whether they met the requirements, they were newly recognized as jeonse fraud victims or related parties. The remaining cases were excluded because the requirements were not met or because the full deposit amount could be returned. There were also objection cases that were dismissed due to failure to meet the requirements.

To date, the committee has designated a cumulative total of 39,669 cases as jeonse fraud victims or related parties, and has approved 1,201 requests for urgent suspension of foreclosure and auction proceedings. The total number of victim support cases stands at 68,415. As of the end of last month, Korea Land & Housing Corporation (LH) had purchased 9,707 jeonse fraud-affected homes. So far this year, the average number of homes purchased per month is 784, which is more than 100 homes higher than the average for the second half of last year.

Counseling session in progress at the Jeonse Fraud Victim Support Center installed on the first floor of the district office.jpg

To accelerate the purchase of affected homes, the Ministry and LH are holding purchase review meetings and operating a fast-track process that simplifies related procedures. In addition, the Ministry announced that, starting this month, it will implement a plan to provide advance payments of a portion of auction surplus proceeds to victims with joint collateral. Until now, for homes with joint collateral, all auction or foreclosure proceedings for all properties had to be completed before calculating and paying out the auction surplus. Going forward, a portion of the surplus will be paid as soon as the auction or foreclosure for each affected home is completed.

This system was developed in February this year as part of measures to support jeonse fraud victims. To provide faster support to victims with joint collateral before the implementation in November of the minimum guarantee system for victims and advance payment/later settlement for unauthorized contract victims such as trust fraud, it will be launched this month. Tenants facing difficulties due to jeonse fraud can apply for victim designation at the city or province office with jurisdiction over their residence. Those designated as victims through the committee's decision can receive guidance on support measures at the Jeonse Fraud Victim Support Center or branch offices of the Housing and Urban Guarantee Corporation (HUG).

This content was produced with the assistance of AI translation services.