Large-Scale Damage from 'Jeonse Fraud'... Prosecution Considers Direct Investigation

Submission of the Amendment to the Housing Lease Protection Act to the National Assembly
Extension of the Government-wide Special Crackdown
Government to Announce Measures Against Jeonse Fraud Within This Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The government has decided to promptly submit a revision bill of the 'Housing Lease Protection Act' to the National Assembly to strengthen safety measures before and after lease contracts. Additionally, it plans to extend the special government-wide crackdown to detect jeonse fraud and is considering having the prosecution directly investigate cases involving large-scale damages. The government intends to announce measures to minimize jeonse fraud damages within this month.

The government discussed these measures to respond to jeonse fraud damages at the 'State Affairs Related Ministers' Meeting' chaired by Prime Minister Han Deok-soo.

First, to prevent jeonse fraud that may occur before and after lease contracts, the government plans to promptly submit the revised Housing Lease Protection Act, for which legislative notice was completed on the 2nd, to the National Assembly. The revision includes provisions allowing tenants to request information such as the landlord's tax payment certificate before the contract, and obligates landlords to present such information unless there is a justifiable reason when requested by the tenant.

Support for victims will also be strengthened. The government will consider establishing regional jeonse damage support centers with personnel support, and securing financial resources to stably supply jeonse deposit return guarantees.

To prevent recurrence of jeonse fraud, the government will extend the special government-wide crackdown, refer suspected cases of jeonse fraud for investigation monthly, and consider having the prosecution directly investigate cases involving organized crimes or large-scale damages.

The government plans to announce measures to minimize jeonse fraud damages within this month after gathering opinions from academia, industry, private experts, and consulting related agencies.

Meanwhile, the Ministry of Land, Infrastructure and Transport announced the 'Jeonse Fraud Damage Prevention Plan' on September 1 last year and is implementing follow-up measures. It has established jeonse damage support centers and provides tenants with loans, emergency housing, and free legal consultations. It also plans to launch the Safe Jeonse application this month, which allows users to check the market price of newly built villas. From this month, a pilot project is underway to enable banks to verify lease contracts during the mortgage loan screening process.

The government is also intensively cracking down on jeonse fraud crimes in cooperation with the National Police Agency. In addition, following the results of the state affairs task inspection meeting in December last year, it is collaborating with related agencies to ensure tenants can promptly recover their deposits. Specifically, to resolve complex legal issues when landlords die or inheritance procedures are incomplete, the Ministry of Land, Infrastructure and Transport operates a 'Joint Legal Support TF' with the Ministry of Justice and others. To expedite deposit returns, a dedicated organization has been formed and is operating within the Ministry and the Housing and Urban Guarantee Corporation (HUG).