GH and Korea Bar Association Legal Aid Foundation Collaborate to Recover Court Deposits for Jeonse Fraud Victims

The Jeonse Damage and Prevention Support Center in Gyeonggi Province, operated by Gyeonggi Housing and Urban Corporation (GH), is establishing a cooperative system with the Korea Bar Association Legal Aid Foundation to provide full-scale support for the prompt recovery of court deposit funds by victims of Jeonse fraud.

This collaboration was launched in response to the recent increase in cases where the Korea Association of Realtors makes “uncertain deposits” in court regarding the indemnity insurance payments related to the brokerage activities of licensed realtors. In instances where multiple tenants suffer damages simultaneously due to the wrongdoing of a member realtor, the association has been placing the entire insurance payout for these victims in the court through the uncertain deposit process.

In such cases, victims face significant challenges in swiftly recovering deposit funds, as they must each file individual lawsuits due to the complex relationships regarding their rights.

The Jeonse Damage and Prevention Support Center of Gyeonggi Province held a meeting with the Korea Bar Association Legal Aid Foundation on the 1st to discuss support measures for the prompt recovery of court deposit funds for victims of Jeonse fraud. Provided by Gyeonggi Housing and Urban Corporation

To resolve these issues, the center and the foundation have divided responsibilities to establish— for the first time nationally— a support system for rapid relief of rights. The center collects data to identify victims involved in the same incident, while the foundation proceeds with civil mediation or proportional distribution (distribution according to share) through dedicated lawyers.

After establishing the collaborative framework, the two organizations held a joint council meeting on August 1 in the conference room of the Jeonse Damage Support Center in Suwon, Gyeonggi Province, and initiated the first round of support.

On site, 12 tenants who suffered damages due to the brokerage activities of a realtor based in Suwon attended and participated in discussions on the procedures to recover court deposits and other specific steps necessary to regain their rights. GH and the foundation plan to continuously expand their support to cover future cases of similar fraud.

Yongjin Kim, CEO of GH, stated, "This collaboration is a highly meaningful support system that substantially reduces the legal and economic burden on victims," adding, "We will continue close cooperation with the Korea Bar Association Legal Aid Foundation to ensure victims can recover their deposits as quickly as possible."

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