Special Act on Jeonse Fraud Submitted to National Assembly Plenary Session... 176 Votes in Favor

Plenary Vote Scheduled for 27th and 28th
Ruling Party: "There Are Financial Issues"

The 'Special Act on Jeonse Fraud,' which supports victims by first providing relief and then seeking reimbursement, has been submitted to the plenary session of the National Assembly. With a vote scheduled for the end of this month, it has emerged as a contentious bill with sharply divided positions between the ruling and opposition parties.

On the 2nd, at the plenary session held in the National Assembly, the amendment to the "Special Act on Support for Jeonse Fraud Victims and Housing Stability" (Jeonse Fraud Special Act) was submitted to the plenary session, led by the opposition parties, causing victims to breathe a sigh of relief.
[Image source=Yonhap News]

On the afternoon of the 2nd, the National Assembly held a plenary session and presented the 'Partial Amendment to the Special Act on Support for Jeonse Fraud Victims and Housing Stability (Alternative Bill)' for plenary submission. The vote resulted in approval with 176 votes in favor, 90 against, and 2 invalid out of 268 members present.

The Special Act on Jeonse Fraud aims to provide prompt support to victims through a relief-first, reimbursement-later approach. Additionally, it designates the Housing and Urban Guarantee Corporation or an institution prescribed by Presidential Decree as the bond purchasing agency. The purchase price for the tenant deposit return claims by the bond purchasing agency is set at a rate equal to or higher than the priority repayment ratio of the deposit under Article 8 of the Housing Lease Protection Act. Among the conditions for victims of jeonse fraud, the tenant deposit limit is raised from the current maximum of 500 million KRW to 700 million KRW. For trust jeonse fraud rental housing, the court may suspend or stay housing delivery lawsuits, and special provisions such as temporary suspension of compulsory execution are newly introduced.

Kim Min-ki, a member of the Democratic Party and the standing chairman of the National Assembly Land, Infrastructure and Transport Committee (LITC), stated before the vote, "This bill was approved by the LITC in December last year but was not reviewed for 60 days without any reason by the Legislation and Judiciary Committee. The Special Act on Jeonse Fraud is a livelihood bill that provides practical help to suffering tenants by promptly returning part of the deposit through a relief-first, reimbursement-later method."

The ruling and opposition parties must vote on the passage of the Special Act on Jeonse Fraud at the next plenary session. The Democratic Party insists that the bill must be passed at the plenary session at the end of this month. Hong Ik-pyo, the floor leader of the Democratic Party, said on CBS Radio's 'Kim Hyun-jung's News Show' that morning, "If we want to handle the Special Act on Jeonse Fraud at the plenary session scheduled around the 27th or 28th, we must process the submission agenda at today's plenary session."

On the other hand, the People Power Party maintains that the Special Act on Jeonse Fraud should not be passed unilaterally. Yoon Jae-ok, the floor leader of the People Power Party and acting party leader, told reporters in front of the National Assembly plenary hall in Yeouido, Seoul, "The bill includes provisions that could cause various other problems, such as how to support victims of other fraud crimes. There is also a financial issue as it requires a significant budget investment."