Visited Hwagog1-dong Real Estate Agency to Listen to On-site Voices and Propose System Improvements
Gangseo-gu Conducts Comprehensive Investigation of Multi-Household Rental Business Operators to Prevent ‘Villa King’ Victims
[Asia Economy Reporter Park Jong-il] Seoul Gangseo-gu (District Mayor Kim Tae-woo) has taken decisive action to prevent further damage by launching an internal investigation targeting multi-household rental business operators amid the nationwide issue of jeonse fraud caused by so-called ‘Villa Kings’.
Mayor Kim Tae-woo has instructed an internal investigation by the end of March on 10 multi-household rental business operators owning 100 or more units in Gangseo-gu. The total number of units owned by these operators in the area amounts to approximately 1,300.
The inspection covers obligations under the Special Act on Private Rental Housing, including ▲compliance with the mandatory rental period ▲reporting of lease contracts ▲subscription to rental deposit guarantee insurance.
The district imposes fines of 30 million KRW for violations of the mandatory rental period, 5 million KRW for failure to report lease contracts, and a penalty amounting to 5-10% of the deposit for failure to subscribe to guarantee insurance.
Repeated non-compliance with rental business obligations may result in cancellation of rental business registration and recovery of tax benefits, with strong enforcement measures applied.
In this regard, Minister of Land, Infrastructure and Transport Won Hee-ryong and Mayor Kim Tae-woo visited a real estate agency in Hwagog1-dong on the 29th to listen to on-site voices and discuss countermeasures against jeonse fraud.
At the meeting, Mayor Kim emphasized the need for ‘active information sharing’ to support victims, highlighting the reality that private guarantee companies refuse to submit data to local governments after guarantee contracts citing personal information protection.
He also proposed revising current laws to support ‘professional lawyers and personnel’ for establishing and operating legal support centers for jeonse fraud victims and to apply restrictions on subscription for rental business operators whose registration is canceled ex officio due to obligation violations, which currently do not apply to those without guarantee insurance.
Mayor Kim Tae-woo stated, “Gangseo-gu will take a leading role in preventing jeonse fraud damage through thorough fact-finding and countermeasure preparation,” adding, “We will regularize ‘monthly comprehensive meetings with related agencies’ and continuously promote ‘strengthened management of registered rentals’ to fully commit to preventing jeonse fraud.”
Last year, the district formed a ‘Real Estate Empty Jeonse Damage Prevention TF Team’ with Gangseo Police Station, the Gangseo branch of the Korea Association of Realtors, appraisers, and other experts to prevent jeonse fraud. To date, it has recorded 57 consultations on jeonse fraud prevention and established cooperative systems with various institutions to eradicate empty jeonse fraud and protect residents’ valuable assets.
For more details, inquiries related to registered rental businesses can be directed to the Housing Division of Gangseo-gu Office, and matters related to jeonse fraud damage and real estate brokerage can be addressed to the Real Estate Information Division.
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