Jeonse Fraud Countermeasures Committee Urges Further Amendment, Calling Special Law "Half-Measure"

Press Conference in Front of Yongsan Presidential Office

The National Countermeasures Committee for Jeonse Fraud and Empty Jeonse Victims urged additional amendments, calling the Jeonse Fraud Special Act passed by the National Assembly plenary session a 'half measure.'

On the 26th, the committee held a press conference in front of the Presidential Office in Yongsan-gu, Seoul, stating, "The government passively adopted a few measures and completely ignored key measures such as 'relief first, recovery later,' and the National Assembly tolerated this under the name of consensus."

On the 26th, Ahn Sang-mi, Chairperson of the National Countermeasure Committee for Jeonse Fraud and Empty Jeonse Victims, is speaking at a government-level press conference held in front of the War Memorial in Yongsan-gu, Seoul, calling again for additional measures against jeonse fraud and empty jeonse and for a meeting with the President.
[Photo by Yonhap News]

They pointed out, "There are victims who need even this small alternative immediately, so we could not fully oppose the passage of the Special Act," adding, "Many victims, such as those defrauded before moving in, those with deposits over 500 million won, and cases where the start of investigation is unclear, have been left in the blind spots of the Special Act."

They continued, "If complicated enforcement ordinances and rules are created according to the government's convenience and discretion, the effectiveness of the Special Act will further decrease," and demanded, "Prompt additional administrative measures and amendments to the Special Act must be made."

The National Assembly approved the bill on the Special Act on Support for Jeonse Fraud Victims and Housing Stability at the plenary session the day before. The bill focuses on expanding financial support for victims and having the government provide auction and public sale agency services.

Regarding the contentious issue between ruling and opposition parties about compensation for the deposit, the bill includes provisions for the government to provide interest-free loans for 10 years to victims up to the amount of the highest priority repayment. Regardless of the timing of mortgage registration or the number of Jeonse contracts, loans for the highest priority repayment amount at the time of auction or public sale are possible. For amounts exceeding the highest priority repayment, loans up to 240 million won are supported at low interest rates of 1.2 to 2.1%.

The Housing and Urban Guarantee Corporation (HUG) will support a 'one-stop auction and public sale agency service' for Jeonse fraud victims, and the government will cover 70% of the auction and public sale costs. The scope of the Special Act has been expanded to tenants with deposits of 500 million won or less. Victims of landlords' intentional gap investment or double contracts due to trust fraud are also included in the support targets.