"Helping Victims at a Level Acceptable to the Public"
Repeated Opposition to Opposition's Proposal of 'Support First, Then Reimbursement'
The government is considering measures to grant priority purchase rights to victims of jeonse fraud who intend to bid on their rented homes, as well as to exempt related taxes and fees such as acquisition tax and property tax.
Minister of Land, Infrastructure and Transport Won Hee-ryong is inspecting the operation status and holding a countermeasure meeting at the Gyeonggi Province Jeonse Damage Support Center on the 24th. / Photo by Noh Kyung-jo
On the 24th, after inspecting the Gyeonggi-do Jeonse Victim Support Center, Won Hee-ryong, Minister of Land, Infrastructure and Transport, told reporters, "Victims are forced to take on houses through public auctions or court auctions, so we want to help as much as possible within a level that the public can accept, except for cases that are truly impossible." He stated that while the government cannot provide money directly, it can exempt taxes collected.
It is reported that the Ministry of the Interior and Safety, the relevant department, also agrees with the acquisition tax exemption. Specific measures are expected to be included in the "Special Act on Support for Jeonse Fraud Victims" (hereinafter referred to as the Special Act).
Minister Won plans to distinguish between cases of jeonse fraud and failed gap investments to avoid complaints. He explained, "The case in Dongtan, Hwaseong City needs to be examined. If the house is not being taken away due to an auction, the cause is a drop in house prices, which is different from the jeonse fraud we are currently discussing."
In Dongtan, a couple named Park who owns more than 200 officetels caused a 'Kkangtong Jeonse' crisis by demanding tenants to transfer ownership of the officetels because they were unable to return deposits due to tax delinquency issues. Minister Won said, "This is a typical case of non-return of deposits, and even if it goes to auction, the outcome is obvious and it takes a long time (so it seems to be like this)."
Meanwhile, the ruling party and the government aim to propose the Special Act this week and have it discussed in the standing committee. However, it is expected to be difficult to narrow the gap in positions as the opposition party insists on a method of providing support first and then claiming reimbursement rights. The Democratic Party of Korea plans to promote a Special Act in which, if victims cannot recover their jeonse deposits, Korea Asset Management Corporation (KAMCO) and others purchase the claims and compensate the tenants first, then recover the invested funds through public or court auctions and sales.
In response, Minister Won reiterated at the Incheon Jeonse Victim Support Center he visited earlier, "The government will not set a precedent of paying the fraud damage amount first and then claiming reimbursement rights later."
Minister Won added, "There are parts that require public consent, and we must not cross the line. If the government tells us to bear the cost regardless of whether the funds are recovered after paying on behalf of victims, the government will ultimately have to cover it. We cannot leave a precedent that the government will solve all fraud crimes in the future."
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