Yeongju City in Gyeongbuk has launched a ‘Jeonse Fraud Victim Consultation Desk’ to protect households affected by Jeonse fraud.
Yeongju City announced on the 13th that, following the enforcement of the ‘Special Act on Support for Jeonse Fraud Victims and Housing Stability (hereinafter referred to as the Jeonse Fraud Special Act)’ on June 1 of this year, it has been operating the ‘Jeonse Fraud Consultation Desk’ at Yeongju City Hall since the 5th.
Recently, damages caused by Jeonse contracts, including Jeonse fraud, have surged nationwide, and continuous damage is feared as Jeonse fraud has also occurred in multi-family housing in Yeongju City.
Accordingly, as the active role of local governments becomes increasingly important, Yeongju City has established a dedicated Jeonse fraud consultation desk to provide guidance on the prevention of Jeonse fraud, which has become a social issue, and support systems.
The consultation desk is temporarily set up in the Architecture Administration Team of the City Hall’s Architecture Division and operates from 9 a.m. to 6 p.m.
The support targets are tenants who meet all four conditions: having completed the delivery of the house and resident registration (moving-in report) with a confirmed date; having a lease deposit of 300 million KRW or less (adjustable up to 200 million KRW); having suffered or expected to suffer damage from non-payment of lease deposit return claims by multiple tenants; and having reasonable grounds to suspect that the landlord intended not to fulfill the obligation to return the lease deposit. Exceptions apply for contracts with landlords without legal authority, trust fraud, or cases where the lease deposit is 500 million KRW or more.
Tenants who qualify as Jeonse fraud victims can apply for a determination as a Jeonse fraud victim by submitting the relevant documents.
Applicants for victim support will be determined as Jeonse fraud victims within 60 days through investigations by the relevant city or province and deliberations by the Jeonse Fraud Victim Support Committee. However, the review period may be extended by 15 days if additional materials or deliberation are required. If there is an objection to the review result, an appeal can be filed within 30 days, and a re-examination result will be received within 20 days.
Once determined as a Jeonse fraud victim, support includes assistance with auction and public sale procedures, installment repayment of outstanding Jeonse loans and deferral of credit information registration, interest-free Jeonse loans with priority repayment for up to 10 years, housing purchase and Jeonse loan support and refinancing loans, and emergency welfare support (1.62 million KRW for a four-person household).
In addition to the Jeonse Fraud Special Act, existing support such as emergency housing support, financial support, free legal counseling, and psychological support provided through the Korea Housing & Urban Guarantee Corporation (HUG) Jeonse Victim Support Center can also be accessed through the consultation desk.
Furthermore, the city stated that it will actively promote Jeonse fraud prevention and victim support systems through Yeongju newsletters and SNS to do its best in supporting and preventing victimization.
Ha Cheonsu, Director of the Architecture Division, said, “We will actively strive to alleviate housing instability and ensure smooth implementation of victim support through guidance on the support system for Jeonse fraud victims following the enforcement of the Special Act.”
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