Jeonse Fraud Victims Remain Eligible as Homeless Applicants Despite Winning Auction for Residence

Legislative Notice of Amendment to the 'Housing Supply Regulations' Starting from the 7th

From now on, even if victims of Jeonse fraud acquire the house they are residing in through auction, they will be considered as non-homeowners when applying for housing subscription.

The Ministry of Land, Infrastructure and Transport announced on the 6th that it will publicly notify the amendment to the 'Housing Supply Regulations' starting from the 7th, which mainly maintains the non-homeowner status for Jeonse fraud victims who inevitably acquire their rented house through auction. This is a follow-up measure to the Jeonse fraud prevention and victim support plan announced last February.

The recognition of non-homeowner status for auctioned houses was a major suggestion raised at the Jeonse fraud victim briefing session held in January. Most victims are non-homeowners, but despite inevitably acquiring the leased house through auction, they were classified as homeowners, resulting in the loss of benefits for non-homeowner housing subscription. Therefore, the system improvement was pursued.

The non-homeowner recognition for auctioned houses applies to tenants who have not received their lease deposit back and acquire the leased house through auction or public sale. The exclusive area of the leased house must be 85㎡ or less, and the publicly announced price must be 300 million KRW or less in the metropolitan area (150 million KRW or less in other regions) to be recognized. The price is based on the publicly announced price closest to the date of the resident recruitment announcement (the house for which the subscription is intended). Unlike sale houses, public rental housing such as permanent rental, national rental, and Happy Housing (including sale conversion), which allow residence with a low rental deposit, are excluded from non-homeowner recognition.

Currently, if a tenant acquires the leased house through auction, they are classified as homeowners and cannot receive points (up to 32 points) based on the non-homeowner period nor apply for special supply. However, with the amendment of the regulations, they will be recognized as non-homeowners and be able to apply for housing subscription. Additionally, even those who acquired leased houses through auction before the enforcement of the regulations will be recognized as non-homeowners, enabling broader relief for Jeonse fraud victims.

After the amendment, to be recognized as a non-homeowner, Jeonse fraud victims must submit documents such as the Jeonse contract, proof of auction or public sale acquisition (auction approval decision notice, sale decision notice), and certificate of registered matters to the project entity after applying for housing subscription.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, said, "We expect this amendment to help victims who have inevitably acquired houses through auction," adding, "We will continue to faithfully implement measures to support Jeonse fraud victims."