The number of dwellings purchased to aid victims of the jeonse fraud crisis is nearing 5,000. The total number of victims recognized as eligible for support under the special jeonse fraud law has surpassed 35,000.
The Ministry of Land, Infrastructure and Transport said on the 1st that, as of Dec. 23 last year, the Korea Land & Housing Corporation (LH) had purchased 4,898 dwellings tied to jeonse fraud cases.
LH's purchase program for victimized dwellings allows LH to acquire the right of first refusal from victims, win the properties through auctions or public sales, and provide them as public rentals to support housing stability. LH converts the auction profit—generated by purchasing below the normal acquisition price—into a deposit so that victims of jeonse fraud can live there for up to 10 years without rent burden. Upon move-out, the auction profit is paid immediately to help recover as much of the deposit loss as possible.
The Ministry of Land, Infrastructure and Transport (MOLIT) and LH are operating purchase review meetings and a fast-track process to quickly acquire dwellings tied to jeonse fraud. They continue consultations with district courts on proceeding with auctions to facilitate smooth acquisitions and support housing stability.
In addition, MOLIT convened plenary meetings of the "committee for support to jeonse fraud victims" throughout December last year, reviewing 1,375 cases and finally approving 664 cases as jeonse fraud victims or equivalent.
Of the 664 approvals, 613 were new applications (including reapplications), and 51 were cases in which objections to prior decisions were filed and additional confirmation found they met the requirements for jeonse fraud victims under Article 3 of the Jeonse Fraud Victim Act, leading to decisions as victims or equivalent.
Of the remaining 711 cases, 427 were rejected for failing to meet the requirements. In 158 cases, the full deposit could be returned through guarantee insurance and preferential repayment, so they were excluded from application. Of the 126 objection cases, the committee determined they still failed to meet the requirements and dismissed them.
Accordingly, the total number of cases finally determined by the committee as jeonse fraud victims or equivalent stands at 35,909 (cumulative), and decisions requesting cooperation to defer urgent auctions and public sales total 1,086 (cumulative). For the determined victims or equivalent, a total of 54,760 cases (cumulative) of support have been provided across housing, finance, and legal procedures.