The Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH) are accelerating the program to purchase dwellings damaged by jeonse fraud. The average number of purchases per month this year has reached 840 units, up 28.2% from the second half of last year (655 units).
The Ministry of Land, Infrastructure and Transport (MOLIT) said on the 6th that total purchases of dwellings damaged by jeonse fraud came to 3,360 units from January to April this year. That amounts to an average of 840 units a month. Compared with an average of 655 units a month in the second half of last year, the pace of purchases of dwellings damaged by jeonse fraud has quickened. Cumulative purchases of such dwellings total 8,357 units.
Under Article 25 of the Act on the Support for Victims of Jeonse Fraud, the program to purchase dwellings damaged by jeonse fraud allows public housing operators such as LH to receive the transfer of the right of first refusal from victims of jeonse fraud and acquire the dwellings by winning bids through auctions or public auctions. Victims can convert auction proceeds into their deposits and live in the damaged dwellings for up to 10 years, and upon moving out can receive the auction proceeds.
The Ministry of Land, Infrastructure and Transport (MOLIT) and LH are operating purchase review meetings and a fast track to speed up purchases of damaged dwellings. They plan to continue consultations with district courts on proceeding with auctions to support housing stability.
Of the 2,047 cases reviewed at the plenary meeting of the committee for support of victims of jeonse fraud held on the 6th, 855 were finally approved as victims of jeonse fraud, etc. Of the 855 cases, 789 were new applications (including reapplications). The remaining 66 involved objections to existing decisions, and after additional confirmation of whether they met the requirements for victims of jeonse fraud under Article 3 of the Act on the Support for Victims of Jeonse Fraud, they were determined to be victims of jeonse fraud and victims, etc.
Among the 1,192 cases that were rejected, 748 did not meet the requirements. In 250 cases, full return of the deposit was possible through guarantee insurance and preferential repayment amounts, so they were excluded from application. Of the 194 objections filed, they were still deemed to have failed to meet the requirements and were dismissed.
To date, the committee has made final decisions on a cumulative total of 38,503 cases of victims of jeonse fraud, etc., and has decided to request cooperation to defer urgent auctions and public auctions in a cumulative total of 1,167 cases. For the determined victims, etc., a cumulative total of 63,568 cases of support is being provided for housing, finance, legal procedures, and more.
Tenants who were not determined to be victims of jeonse fraud and were denied recognition or determined to be victims of jeonse fraud, etc., may file an objection under Article 15 of the Act on the Support for Victims of Jeonse Fraud, and even if the objection is dismissed, they can reapply if related circumstances change later and be determined as victims of jeonse fraud.
The Ministry of Land, Infrastructure and Transport (MOLIT) is also steadily implementing financial support to ease repayment burdens on jeonse loans for victims of jeonse fraud.
Currently, if repayment of jeonse loans is difficult due to jeonse fraud, for the portion guaranteed by a guarantee institution, the institution first subrogates repayment and then allows the victim to repay in interest-free installments for up to 20 years (special debt adjustment). For the remaining debt excluding the portion guaranteed by the guarantee institution, since Sep. 2024, Kookmin, Shinhan, Hana, Woori, NongHyup, IBK, and KakaoBank have been operating a "long-term installment repayment program."
The "long-term installment repayment program" allows victims who used the Korea Housing Finance Corporation (HF) jeonse guarantee to repay the remaining debt (10%) excluding HF's guaranteed portion in installments over up to 20 years at the bank that handled the jeonse loan.