Ruling Party and Government "Considering Exemption of Acquisition and Property Taxes for Jeonse Fraud Victims When Purchasing Homes"

Ruling Party and Government Consider Tax Reduction for Tax Relief When Exercising Priority Purchase Rights on Housing

The People Power Party and the government are considering a plan to exempt the acquisition tax up to the full amount when victims of jeonse fraud purchase the house they are currently residing in.

A representative of the People Power Party stated on the 24th, "The party and government are reviewing measures to provide tax reduction benefits such as acquisition tax and property tax only to victims of jeonse fraud who wish to exercise the priority purchase right for housing."

On the 24th, victims of jeonse fraud visited the Jeonse Damage Support Counseling Center in Bupyeong-gu, Incheon, to receive consultations. Photo by Dongju Yoon doso7@

Generally, when acquiring a house, an acquisition tax of 1-3% of the house price is applied, but it has been reported that the party and government are considering exempting this tax from half to the full amount. Exemption of property tax after acquiring the house is also being reviewed as one of the support measures for victims.

The party and government decided at a meeting the day before to promote the enactment of a special law to support victims of jeonse fraud. Through this, victims will be able to directly exercise the priority purchase right or transfer the priority purchase right to the Korea Land and Housing Corporation (LH) to continue living in the house they currently reside in. Additionally, if the victim directly exercises the priority purchase right, low-interest loans will be supported, and related taxes will also be reduced. Detailed matters such as the criteria and scope of houses subject to jeonse fraud will be decided through a review committee established within the Ministry of Land, Infrastructure and Transport.

Yoon Jae-ok, floor leader of the People Power Party, said at the highest-level meeting held at the National Assembly on the same day regarding the enactment of the special law, "I think this is the most realistic measure to protect the housing rights of victims in that it provides an opportunity to own a home to those who want to bid on rental housing and allows long-term residence if they wish to continue living there." He added, "I hope that the ruling and opposition parties will engage in consultations with a responsible attitude, considering fairness and the feasibility of securing resources." He further said, "Above all, since the time given to victims is limited, I ask for cooperation so that legislation can be completed within this week at the National Assembly."