Sim Sang-jung and Heo Jong-sik to Hold 'Discussion on Measures Against Empty Lease Damage' on the 8th
Rep. Heo: "Need to Improve Auction and Public Sale Systems Including Auction Delays"
Task Force: "Concentrated Lease Fraud Is a Social Disaster"... Urges Emergency Housing and Financial Support
[Asia Economy Reporter Park Hyesook] It is estimated that 3,107 households in Michuhol-gu, Incheon, have fallen victim to jeonse fraud, with the total damage amounting to 145.8 billion KRW.
Among them, 65% are at risk of auction, highlighting the urgent need for government emergency housing and financial support, along with prompt improvements to the auction and public sale systems.
The "Michuhol-gu Jeonse Fraud Damage Countermeasure Committee" hosted an emergency forum titled "Emergency Discussion for Measures to Address Michuhol-gu Empty Jeonse Damage," co-hosted by Justice Party lawmaker Shim Sang-jung (Gyeonggi Goyang-gap) and Democratic Party lawmaker Heo Jong-sik (Incheon Dong-gu Michuhol-gu-gap), held on the afternoon of the 8th at the National Assembly Members' Office Building, Meeting Room 1.
The forum was organized to share the situation of concentrated jeonse fraud damage affecting over 3,000 households in Michuhol-gu, Incheon, and to seek countermeasures such as emergency housing and financial support.
Presenters included Ahn Sang-mi, Chairperson of the Countermeasure Committee, and Kim Tae-geun, Operating Committee Chair of Tenant114. Panelists included Lee Jang-won, Director of the Housing Lease Protection Division at the Ministry of Land, Infrastructure and Transport; Lee Yang-ho, Director of Housing Policy at Incheon City; Park In-su, Civil Affairs Officer at the Court Administration Office; Lee Kwang-hoon, Senior Secretary to Lawmaker Heo Jong-sik; and Lee Jong-hoon, Senior Secretary to Lawmaker Shim Sang-jung.
According to the Countermeasure Committee, as of the end of last month, out of 3,107 households affected by jeonse fraud in Michuhol-gu, 2,020 households, or 65%, are at risk of going to auction.
Currently, 718 households have either completed or are undergoing auction. Among these, 36 households have completed sales, 59 are in the process of being sold, 601 are awaiting auction, and 22 are under public sale. Once the properties go to auction, there is a high likelihood that the jeonse deposits will not be recovered. Based on an estimated deposit of 70 million KRW per household, the total damage is estimated at 145.8 billion KRW.
The "Emergency Forum for Measures to Address the Kan-tong Jeonse Damage in Michuhol-gu" is being held on the 8th at the National Assembly Members' Office Building, Meeting Room 1. [Photo by Heo Jong-sik's Office]
Ahn Sang-mi, Chairperson of the Countermeasure Committee, criticized, "Jeonse fraud, which victims could not avoid even after thorough investigation or prior knowledge, is a 'social disaster.' This is not due to ignorance but a systemic problem, and no solution can be found by shifting responsibility onto tenants any longer."
Accordingly, the committee's demands include ▲ emergency housing support utilizing vacancies from LH (Korea Land and Housing Corporation) and iH (Incheon Urban Corporation) ▲ granting priority purchase rights to victim tenants during auctions ▲ suspension and delay of auctions ▲ easing regulations on low-interest loans ▲ extension of jeonse loan terms by financial institutions.
Kim Tae-geun, Operating Committee Chair of Tenant114, stated, "Currently, auctions are sequentially proceeding for about 2,000 households, which amounts to approximately 5,000 people including families. At least two years of social support, including emergency housing assistance, is necessary for the victims' families to recover their daily lives."
Lee Jang-won, Director of the Housing Lease Protection Division at the Ministry of Land, Infrastructure and Transport, said, "Currently, 28 houses under forced management by the Housing and Urban Guarantee Corporation (HUG) and 200 emergency housing units from LH have been secured. About 30 residents have applied for emergency housing at the Gangseo and Incheon Jeonse Damage Support Centers. We plan to secure 500 more units by the first half of this year and expand emergency housing units based on additional demand."
Lee Yang-ho, Director of Housing Policy at Incheon City, said, "Two city officials have been dispatched to the Incheon Jeonse Damage Support Center, which is scheduled to officially open in March, handling an average of 25 consultations per day. We will ensure swift support for affected residents in accordance with Ministry of Land policies."
Lawmaker Heo Jong-sik emphasized, "It is urgent to improve the auction and public sale systems, including auction delays, and to establish management measures for mandatory guarantee insurance enrollment and unpaid taxes of individual rental business operators."
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