The Ministry of Land, Infrastructure and Transport additionally recognized 843 people as victims of jeonse fraud, bringing the number of victims recognized as eligible for support under the special law on jeonse fraud to nearly 34,000.
The ministry said on Oct. 1 that it held three full sessions of the Jeonse Fraud Damage Support Committee in September and reviewed 1,709 people, ultimately approving a total of 843 as jeonse fraud victims and the like.
Of the 843 approved, 769 were new applications. Seventy-four filed appeals against the previous decisions, and as additional confirmation was made on whether they met the legal requirements for jeonse fraud victims, they were determined to be jeonse fraud victims and the like.
Of the remaining 866, 522 were rejected for failing to meet the requirements. For 173, the full return of deposits was possible through guarantee insurance and preferential repayment, so they were excluded from application. In addition, among those who filed appeals, 171 were dismissed as they still did not meet the requirements.
Those finally determined by the committee as jeonse fraud victims and the like total 33,978 (cumulative), and decisions requesting cooperation for emergency suspension of court or public auctions total 1,048 (cumulative). The determined victims and the like receive support for housing, finance, and legal procedures, with total performance of 44,181 people (cumulative).
The Korea Land & Housing Corporation (LH) has so far purchased a total of 2,529 dwellings that are jeonse fraud damage properties. Monthly purchases are increasing, from 44 dwellings in January to 108 in March, 262 in May, 381 in July, and 541 in September. LH is also purchasing 403 dwellings that violate the Building Act and is working to support housing stability for jeonse fraud victims.
LH's purchase of jeonse fraud damage dwellings is a project in which LH receives the right of first refusal from the victim, wins bids for the relevant dwellings through court or public auctions, and provides them to the victim as public rentals to support housing stability.
In this process, LH converts the auction profits—realized by purchasing at a bid price lower than the normal acquisition price—into deposits, allowing residents to live (for up to 10 years) without rent burden. Upon move-out, the auction profits are paid immediately to help recover deposit losses as much as possible.