Six Months Since Enforcement of Special Jeonse Fraud Act, Support and Supplementary Measures Prepared
Targeting Jeonse Fraud Houses Unavailable for Purchase Such as Geunsaeng and Trust
The government is promoting a plan to sign lease contracts with homeowners who have won bids on houses involved in jeonse fraud and then sublease these houses to victims of jeonse fraud. This measure is aimed at victims who fall into support blind spots, such as illegal commercial villas, multi-family houses, and trust jeonse fraud houses.
On the 5th, the Ministry of Land, Infrastructure and Transport announced that it reported the progress of the Special Act on Support for Jeonse Fraud Victims and Housing Stability (hereinafter referred to as the Special Act) and reviewed supplementary support measures at the National Assembly, marking six months since the enforcement of the Special Act.
Won Hee-ryong, Minister of Land, Infrastructure and Transport, briefing on support measures for victims of jeonse fraud at the Government Seoul Office in Jongno-gu, Seoul, at the end of April. Photo by Dongju Yoon doso7@
According to the supplementary measures, the government classified housing support plans for jeonse fraud victims into three major stages. First, Stage 1 involves purchasing existing houses and renting them to victims.
To this end, for multi-family houses where bulk purchase is inevitable, the government plans to ease purchase requirements so that the purchase can be made with the consent of all victims rather than the consent of all tenants.
Stage 2 involves the public sector (LH) signing individual lease contracts with each household and subleasing to victims if purchase is not feasible. If residence in the existing house is difficult, Stage 3, the final stage, plans to provide public rental housing secured nearby.
Legal support for victims will also be strengthened. Initially, lawyers were connected and costs supported for legal actions newly conducted after victims were designated, but going forward, costs used to secure execution titles (payment orders? deposit return claims) before victim designation will be supported retroactively.
Support for attorney fees for legal experts handling auction and public sale procedures is also under review to be expanded from the current 70% to 100%.
Meanwhile, the Special Act was enforced on June 1. The Ministry of Land, Infrastructure and Transport has designated about 9,000 people as victims so far and supported about 3,800 cases including auction and public sale suspensions and low-interest financial loans. LH is also actively supporting jeonse fraud victims. There have been 150 cases where urgent housing support was needed due to forced eviction or where priority admission qualifications were granted for public rental housing. Recently, LH announced that it will reflect jeonse fraud victim houses in the ‘Acquisition Rental Work Processing Guidelines’ and purchase about 5,000 jeonse fraud houses.
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