Granting purchase rights first and securing bid funds through loans
Considering applying organized crime charges to groups involved in Jeonse fraud before organization
Opposition proposes 'Advance Support, Then Reimbursement Rights' but lacks effectiveness
The government and ruling party are pushing for a plan to confiscate and preserve all criminal proceeds from organized jeonse fraud. They will also implement an auction suspension measure for houses affected by jeonse fraud, grant tenants priority purchase rights, and provide low-interest loans to help tenants secure funds for purchasing the houses.
On the 20th, Park Dae-chul, the Policy Committee Chairman of the People Power Party, told reporters after a party-government meeting on eradicating jeonse fraud and supporting victims, "We have intensively discussed additional measures to provide practical help to victims of jeonse fraud," revealing these plans.
Chairman Park said, "We will strive to ensure that financial institutions can sufficiently implement auction suspension measures, and swiftly promote measures to suspend auctions even when financial institutions sell claims to third parties." He added, "We will institutionally supplement the system to grant priority purchase rights to tenants meeting certain criteria during the auction of affected houses, and also promote low-interest loan support to help victim tenants secure funds to purchase their residences."
Park Dae-chul, Chairman of the Policy Committee of the People Power Party, is speaking at the party-government consultation meeting on the eradication of jeonse fraud and victim support held at the National Assembly on the 20th. Photo by Kim Hyun-min kimhyun81@
He continued, "Organized jeonse fraud criminal groups will be prosecuted under organized crime laws, and measures will be taken to track and confiscate all criminal proceeds from accomplices." He also announced, "In areas with many victim tenants, booths will be set up on-site and a mobile counseling bus will operate starting tomorrow." The counseling bus will provide professional legal and psychological counseling through the Korean Bar Association, the Psychological Association, and others.
Regarding allegations that a prominent politician in Incheon was involved in the jeonse fraud case committed by Nam Mo, known as the 'Construction King' in Michuhol-gu, Incheon, Chairman Park said a special investigation has been requested from the National Police Agency.
However, he clearly opposed the ruling Democratic Party's proposal for public purchase of jeonse fraud-affected houses by specialized claim purchasing institutions such as the Korea Asset Management Corporation. Chairman Park stated, "Even if purchased at a public loss, only senior creditors benefit, so it cannot be a fundamental solution for victim relief," adding, "It is neither desirable nor appropriate to use public funds to repay debts arising between private parties, especially those of malicious landlords, as it only increases the burden on the public." Minister of Land, Infrastructure and Transport Won Hee-ryong also said, "Since senior mortgages are minimal, the amount that can go to victims is practically zero," and commented, "Discussing this issue itself is futile."
Earlier, in his opening remarks at the party-government meeting, Minister Won pointed out, "During the five years of the previous (Moon Jae-in) administration, housing prices more than doubled, pushing young people and vulnerable residents into housing crises, appearing as housing refugees in villas, single-unit apartments, officetels, and so on." He added, "The unilateral revision of the lease law during the housing price surge shocked the rental market and became the root cause of the current jeonse fraud damages."
Attending the meeting were Chairman Park, who leads the People Power Party's newly launched Jeonse Fraud Task Force (TF), Minister Won, Lee Nogong, Vice Minister of Justice, Bang Gi-seon, First Vice Minister of Strategy and Finance, Han Chang-seop, Vice Minister of the Ministry of the Interior and Safety, Lee Se-hoon, Secretary-General of the Financial Services Commission, and Jo Ji-ho, Deputy Commissioner of the National Police Agency.
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