The Ministry of Land, Infrastructure and Transport is speeding up the purchase of dwellings involved in jeonse fraud and the relief process to help stabilize housing for tenants suffering from scams.
The Ministry of Land, Infrastructure and Transport said on the 9th that over the course of three full meetings of the jeonse fraud damage support committee in May, it ultimately recognized 618 of the 1,609 cases filed as victims or equivalent.
Of the cases recognized for relief this time, 579 were newly filed or reapplied. The remaining 39 were cases where objections were raised to earlier decisions and the requirements were revalidated. In contrast, 599 cases that did not meet the requirements were not accepted, and 198 cases that could recover the entire deposit through guarantee insurance or the super-priority repayment amount were excluded from support. Among the objections, 194 cases that fell short of the relief requirements were also dismissed.
Since a special law was enacted in June 2023, the committee has recognized a total of 39,121 cases of damage to date. In addition, 1,182 cases were counted where urgent requests to temporarily suspend auctions or public sales were granted.
Specifically, of the 39,121 cases, Korean nationals accounted for 38,590 (98.6%) and foreigners 531 (1.4%). Most lease deposits were 300 million won or less (97.6%). By region, cases were concentrated mainly in the greater Seoul area (60.6%), with many also in Daejeon (11.2%) and Busan (10.3%).
By housing type, jeonse fraud victims mostly live in multi-family dwellings (28.9%), officetels (20.8%), and multi-household buildings (18.3%). A substantial number also live in apartments (13.4%). Of these, 75.95% were young people under 40.
The government is continuing tailor-made support across several areas, including securing housing, financing, and legal defense, totaling 66,417 cases. Even tenants who fail screening or are not fully recognized as victims may file objections, and if circumstances change, they can reapply at any time to receive relief.
In particular, as of May 26, the number of fraud-affected dwellings purchased by Korea Land & Housing Corporation (LH) reached 9,033 units. So far this year, the average monthly purchase volume is 807 units, showing a markedly faster acquisition process than in previous years. The Ministry of Land, Infrastructure and Transport (MOLIT) and LH have introduced a rapid processing system by streamlining the dwelling purchase process and clarifying timelines, and they are closely communicating with the courts to smoothly coordinate auction procedures.
Tenants living in publicly purchased dwellings can have gains from the auction process returned and applied to their deposits, allowing them to remain in their current homes for up to 10 years with stability. Being able to receive back the auction gains, which become a valuable asset when moving, is seen as helping materially restore losses.
Tenants seeking assistance can submit an application to the metropolitan or provincial government where they live. Once designated as eligible, they can receive detailed one-stop guidance on financial programs and legal representation through the jeonse damage support center or local branches of the Korea Housing & Urban Guarantee Corporation (HUG).