Victims of Jeonse Fraud Receive First-Time Buyer Benefits Even After Winning Jeonse Lease Auction

Ministry of Land, Infrastructure and Transport Develops Additional Support Measures for Jeonse Fraud Victims
Supports Public Rental Housing for Those Struggling to Return to Daily Life
Conditional Issuance of Jeonse Damage Confirmation and Psychological Counseling Available

From now on, the monthly rent payment for victims of jeonse fraud staying in emergency support housing will change from a 6-month advance payment to monthly payments. After residing for up to 2 years, if income and asset requirements are met, they can also move into public rental housing. Additionally, if a victim wins a jeonse house through auction or public sale and has never owned a house before, they will be able to use the lifetime first-time buyer preferential benefits of policy loans when purchasing a home in the future.

The Ministry of Land, Infrastructure and Transport announced on the 10th that it has prepared additional support measures for victims of jeonse fraud with these details. Through this plan, it explained that the expansion of emergency shelter support, establishment of low-interest refinancing loans, and maintenance of non-homeowner status upon auction winning, which were included in the 'Jeonse Fraud Prevention and Victim Support Measures' announced last month, will be made to have practical effects.

First, the rent payment method for emergency support housing, where victim tenants can temporarily stay, will be changed from a 6-month advance payment to monthly payments. The area will also be allowed to be similar to the previously occupied residence. Emergency support housing is supplied at about 30% of the market price, but complaints have been raised due to regulations allowing entry only with monthly rent payment and area smaller than or equal to the previous residence. Along with this, after residing in emergency support housing for up to 2 years, tenants who find it difficult to return to daily life will be supported to move into public rental housing if they meet income and asset requirements.

In cases where victim tenants inevitably win a jeonse house at auction, the additional support plan includes deferring the lifetime first-time buyer preferential benefits of policy loans such as Didimdol Loan and Bogeumjari Loan. The tenant must have no prior history of home ownership, and can receive the lifetime first-time buyer preferential benefits when purchasing a home in the future.

From a financial support perspective, it will be checked to ensure that frontline workers accurately convey that jeonse loan extensions are possible when landlords cannot be contacted or when the deposit is not returned after the contract period ends. The refinancing product for tenants who must continue living in the existing jeonse house will be launched as planned in May, and consultations with related ministries will be held to allow the use of funds when tenants move to guaranteed monthly rent housing. Victim tenants who received emergency housing support will also be supported to receive low-interest loans at an annual rate of 1-2% when moving into a new jeonse house after moving out. In this case, the deposit limit is 300 million KRW, and the loan limit is 240 million KRW per household.

Currently, the jeonse damage confirmation certificate, which can only be issued after the auction procedure is completed, will be improved to be conditionally issued even before completion if deposit damage is certain, and the validity period will be extended from 3 months to 6 months. This measure reflects complaints from busy victim tenants who find it inconvenient to use loan and housing support programs.

Furthermore, in line with the enforcement date (April 1) of the 'Framework Act on National Taxes,' which prioritizes deposit distribution equal to the amount of subordinate national taxes, it plans to recognize sale decisions due to auction and public sales. If victim tenants wish, up to three psychological counseling sessions per person will also be provided. Both non-face-to-face counseling and visits to affiliated centers are possible.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, said, "We will meticulously and carefully ensure that the support measures for victim tenants prepared by the government are implemented without any inconvenience, and do our best to provide practical help for the recovery of daily life."