60% of Jeonse Fraud Victims Suffer Losses of 200 to 300 Million Won, 56% Are in Their 30s

Gangseo-gu Announces Results of Full Survey on Jeonse Fraud Victims on the 5th
64.1% Currently Purchasing Affected Homes by Exercising Priority Purchase Rights

Regarding the large-scale Jeonse fraud, Gangseo-gu, Seoul (District Mayor Jin Gyo-hoon) will announce the results of the "Jeonse Fraud Victims Comprehensive Survey" on the 5th.

According to the preliminary survey results disclosed by Gangseo-gu on the 4th, among the respondents, victims in their 30s accounted for the largest proportion at 56.3%, and the highest proportion of damage amount was between 200 million and 300 million KRW at 58.1%. When asked about future housing plans, 64.1% of respondents answered that they plan to purchase the current damaged housing by exercising preemptive purchase rights or similar options.

There were 168 respondents who said they had exercised or planned to exercise the preemptive purchase rights for the damaged housing, but in most cases, they did so because they had no other choice, and they expressed economic difficulties such as paying acquisition tax after winning the bid and repaying Jeonse loans.

Regarding building maintenance issues caused by the absence of landlords, a significant number of victims, 225 people (70.3%), reported experiencing difficulties, and many victims are still living in the damaged buildings without resolving issues such as leaks, power outages, and water outages.

Additionally, victims are undergoing various legal procedures to recover their deposits, and the burden of litigation costs and economic losses resulting from this is also significant.

More than half of the victims received legal consultation support, but they responded that the quality of the consultations was insufficient, and most victims did not use psychological support services. In particular, 89% of the victims reported experiencing health deterioration such as sleep disorders, gastrointestinal disorders, and nervous breakdowns.

Victims presented various demands for system improvements and support measures, including stronger punishment for malicious landlords and real estate agents, clear guidelines for the special law, prioritizing relief before recovery, easing income criteria for victims, and government purchase of damaged housing.

Gangseo-gu stated that this survey was conducted as a follow-up measure to the "Jeonse Fraud and Jeonse Fraud Victims Support Ordinance," the first of its kind enacted by a local government nationwide, aiming to supplement the special Jeonse fraud law, rescue victims in blind spots, and enhance the effectiveness of government support policies.

The survey was conducted from the 20th to the 24th of last month, using online and telephone consultations after preliminary interviews with victim representatives. The survey targeted a total of 550 people, including 489 victims approved by the Ministry of Land, Infrastructure and Transport and 61 people excluded from the special law who were not recognized as victims, with 355 respondents, showing a response rate of 64.5%.

The survey items included a total of 11 categories and 60 questions, such as ▲exercise of preemptive purchase rights ▲transfer of preemptive purchase rights ▲relocation to new Jeonse housing ▲status of common support policies ▲building maintenance issues ▲litigation cost status ▲improvement plans for legal consultation support ▲improvement plans for psychological counseling support ▲formation of victim groups (meetings) ▲and other suggestions.

The district will hold a "Jeonse Fraud Victims Comprehensive Survey Results Announcement Meeting" at 7:30 PM on the 5th in the basement situation room of the district office to supplement the special law and establish effective government measures. In addition to announcing the survey results, the meeting will discuss current issues and improvement plans for victim support and directions for amending the special law together with the victims.

Jin Gyo-hoon, Mayor of Gangseo-gu, said, "As shown in the survey, the current system is far from sufficient to rescue victims of Jeonse fraud, which is a social disaster," adding, "We strongly urge the government to prepare effective measures, the National Assembly to supplement the special law, and budget support. Meanwhile, our district will also do its best to support victims and prevent such incidents by mobilizing all available administrative power."