The Ministry of Land, Infrastructure and Transport said on the 8th that over three full committee meetings of the charter fraud victim support committee held throughout June, it reviewed 1,409 cases and newly designated 548 of them as charter fraud victims, among others.
Of the cases recognized this time, 505 were first-time applications or reapplications. The remaining 43 were accepted after filing objections to earlier decisions and having the requirements reverified.
Of the remaining 861 cases, 458 that did not meet the requirements were not accepted, and 207 that could recover the full deposit through charter deposit insurance or the super-priority repayment system were excluded from support. Among the objections filed, 196 that did not meet the requirements were dismissed.
Since June 2023, when the special law was created, the committee has finalized a total of 39,669 charter fraud victim determinations. There were 1,201 accepted emergency requests to temporarily halt auctions or public sales, and a total of 68,415 tailored support services were provided to affected tenants across housing, finance, law, and other areas.
If tenants were not recognized as victims or were excluded for meeting only some requirements and do not agree with the decision, they can file an objection. Even if dismissed once, they can reapply later if circumstances change and obtain victim status.
In line with the government's measures, the number of charter fraud victim dwellings purchased by Korea Land & Housing Corporation (LH) totaled 9,707 as of the end of last month. LH has been proceeding smoothly with acquisitions, buying an average of 784 dwellings per month this year.
The Ministry of Land, Infrastructure and Transport (MOLIT) and LH are holding regular review meetings to speed up purchase procedures and are using a fast-track system that combines the application and request steps. They also plan to work with district courts to ensure auction procedures move quickly and to help stabilize victims' housing.
Meanwhile, the Ministry of Land, Infrastructure and Transport (MOLIT) and LH decided to introduce this month a system to advance a portion of auction gains for victims of "joint collateral," where multiple dwellings are tied to a single collateral and recovery has been delayed. Previously, gains could be calculated and paid only after all dwellings tied by joint collateral finished auction and dividends were completed, but now some funds can be paid in advance once the auction of the affected victim dwelling is finished.
This is a follow-up to the victim support measures released in February, and the implementation has been moved up to this month to quickly assist joint collateral victims ahead of the minimum-guarantee system for charter fraud victims and the advance payment with later settlement system for unauthorized-contract victims such as trust fraud, which take effect in Nov.
As for confirmed damages to date, most deposit losses were concentrated at 300 million won or less (97.6%). By region, the greater Seoul area—Seoul, Gyeonggi, and Incheon—accounted for a large share at 60.6%, followed by Daejeon and Busan. By type of dwellings, multifamily dwellings, officetels, and multiunit dwellings were most common, and there were also many apartment residents. By age group, the under-40 younger generation accounted for 75.95% of all victims.