80 People Reported Victims of Jeonse Fraud... 14 Not Recognized, 11 Under Investigation
Fifty-four people in Jeju have been recognized as victims of jeonse fraud. In particular, it was revealed that 36 cases of jeonse fraud occurred in a single officetel building.
Jeju Province announced on the 18th that the Ministry of Land, Infrastructure and Transport reviewed reports of jeonse fraud in the Jeju area from June 1 last year to April 15 this year under the "Special Act on Support for Jeonse Fraud Victims and Housing Stability," and recognized a total of 54 people and approximately 3.8 billion KRW as victims.
The types of housing involved in jeonse fraud in Jeju were mostly officetels with 41 victims, followed by multi-family houses with 5 victims, detached houses with 3 victims, row houses with 3 victims, apartments with 1 victim, and urban lifestyle housing with 1 victim. The age distribution of the victims was 14 people aged 50 and above, 14 people aged 60 and above, 13 people in their 30s, 10 people in their 40s, and 3 people in their 20s.
Among them, 35 people moved into a single officetel building (35 units) owned by landlord A in Jeju city under jeonse but suffered damages by not receiving their deposit back. Another person who moved into this officetel is currently under additional investigation by the Ministry of Land, Infrastructure and Transport. The total amount of money not returned to the 36 tenants by A is about 1.715 billion KRW.
The tenants reportedly could not recover their deposits because the officetel was auctioned off, and their rights were subordinated.
It was found that tenants paid an average jeonse deposit of about 47 million KRW per person to move into the officetel. Although 36 units of the officetel owned by A were auctioned in July 2022, mortgages and other liens were established, pushing the tenants' rights to a lower priority, and the auction proceeds were insufficient to cover the jeonse deposits.
Since the enactment of the special law, a total of 80 people in Jeju reported jeonse fraud from June 1 last year. Among them, 54 were recognized as victims by the Ministry of Land, Infrastructure and Transport's review, 14 were not recognized, 11 are under review, and 1 withdrew the report.
Jeju Province stated that to be recognized as a jeonse fraud victim, the tenant must have taken possession of the house, registered their residence, and obtained a fixed date; the lease deposit must be 300 million KRW or less; multiple tenants must have suffered unrecovered damages; and the landlord must have had the intent to default on the deposit return obligation.
Jeju Province is assisting these victims through emergency housing support, financial and tax support under the special law and the "Jeju Province Ordinance on Support for Jeonse Victims and Housing Stability." Once recognized as a victim, auctions or public sales are suspended, priority purchase rights are granted, and benefits such as housing support, legal assistance, and financial or tax support are provided. The police reportedly have sent landlord A, in his 60s, to the prosecution on fraud charges.
Meanwhile, detailed information on applying for recognition as a jeonse fraud victim and support can be found on the Jeju Province website (https://www.jeju.go.kr) or by contacting the Jeju Province Housing and Land Division (☎ 710-2693, 2695).
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