795 People Apply for Recognition of Damage on the First Day of Jeonse Fraud Special Act Enforcement

Launch of Jeonse Fraud Victim Support Committee
Approval for Cooperation on Postponing 242 Gyeong and Gongmae Cases

On the first day of the enforcement of the special law to support victims of Jeonse fraud, it was reported that 795 tenants nationwide applied for damage recognition. The government plans to recognize the first victims within this month.

On the afternoon of the 1st, the first day of the special law enforcement to support victims of Jeonse fraud, a citizen visiting the Jeonse and Monthly Rent Comprehensive Support Center in the Seosomun Annex of Seoul City Hall is holding an information pamphlet close to their chest. / Photo by Yonhap News

On the 1st, Kwon Hyuk-jin, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, told reporters immediately after the first meeting of the Jeonse Fraud Victim Support Committee (hereinafter referred to as the Committee), "Considering the importance of the matter and the urgency of victim relief, the Committee resolved to request cooperation for the suspension and postponement of auction and public sale for 182 cases in Michuhol-gu, Incheon, and 60 cases in Jin-gu, Busan."

The newly launched Committee consists of a total of 30 members, including ▲8 legal experts such as former judges and prosecutors ▲7 housing lease field experts such as judicial scriveners, appraisers, licensed real estate agents, and tax accountants ▲7 academic experts in housing lease ▲3 individuals with experience in consumer protection public interest activities ▲5 ex officio members at the director level from the Ministry of Economy and Finance, Ministry of Justice, Ministry of the Interior and Safety, Ministry of Land, Infrastructure and Transport, and Financial Services Commission. The chairperson is Choi Wan-joo, former President of the Seoul High Court.

The Committee's role is to decide on Jeonse fraud victims through (re)examination and to request the court for suspension or postponement of auction and public sale for tenants whose auction dates are imminent. Requests can be made in three-month intervals, which is shorter than the maximum one-year period that recognized victims can request.

Director Kwon said, "Until now, the suspension of auction and public sale has been administratively guided by financial authorities to creditors such as banks," adding, "Direct cooperation requests to the court can have a more direct effect." He further added, "From a social public interest perspective, it is better for the court to suspend auctions and public sales." However, in preparation for the possibility that the court may not accept the request, the Committee plans to prepare sufficient materials and persuasive arguments.

The first case of victim recognition by the Committee is expected to be announced within this month. Regarding the controversial criterion of the landlord's intention to default on debt among the recognition requirements, the Committee decided to base it on the "time of contract." Director Kwon explained, "The Committee agreed not to view it more strictly than criminal fraud," and added, "Cases where the landlord was aware from the time of contract that they would be unable to repay the deposit but repeatedly entered into Jeonse contracts will be included."

Meanwhile, including pre-registrations received by local governments, the total number of damage recognition applications received on the first day reached 795. Director Kwon said, "It was the first day of the special law enforcement, and many victims had already been recognized," adding, "We need to observe the trend a little longer." The full meetings to review victim recognition will be held at least once a month, and the three subcommittees will meet at least once a week.