The expiration of the special law to support victims of charter fraud will be extended by two years. Just 45 days before the law was set to expire, both ruling and opposition parties agreed to the extension of the bill.
On the morning of the 16th, the National Assembly's Land, Infrastructure and Transport Committee passed an amendment to the 'Special Act on Support for Charter Fraud Victims and Housing Stability' that extends the sunset provision of the special law to May 31, 2027.
The amendment to the special law must go through the full meetings of the Land Committee and the Legislative and Judicial Committee, as well as the plenary session of the National Assembly. Given that both ruling and opposition parties have agreed to the extension, it is highly likely to pass without issues.
The special law on charter fraud is a two-year temporary law that took effect on June 1, 2023. This bill includes provisions for the Korea Land and Housing Corporation (LH) to purchase homes affected by charter fraud through facilitated public auction and to support victims with the auction profits, as well as finance and housing support measures.
This special law was set to expire on May 31. However, as the number of applications for acknowledgment of charter fraud victims reached 1,500 each month, the need for an extension of the law was raised. As of this day, the number of victims recognized by the Charter Fraud Damage Support Committee is 28,899.
Nine amendments were proposed in the National Assembly to extend the special law for a minimum of one year up to a maximum of four years, but opinions converged on a two-year extension considering the renewal cycle of charter contracts.
However, the amendment stipulates that only tenants who signed their first contracts before June 1 of this year (by May 31) will be recognized as victims of charter fraud eligible for the application of the special law. This criterion was established considering the original intent of the special law to temporarily remedy collective fraud damage.