Government, Support Loan Criteria for Jeonse Fraud Vary... "No Permanent Meeting Body in Operation"

On the 25th, during a hearing of the National Assembly's Land, Infrastructure and Transport Committee regarding support measures for victims of Jeonse fraud, the differing support requirements among lending institutions were pointed out.

The problem began when the government introduced a support measure that provides low-interest loans covering 100% of the auction funds to Jeonse fraud victims who win the auction for the damaged property.

For example, the Korea Housing Finance Corporation (HF) applies a Debt-to-Income ratio (DTI) of 100% for housing purchase loans. However, the Housing and Urban Guarantee Corporation (HUG) applies a DTI of 60% for its Didimdol loan, causing some Jeonse fraud victims to be unable to receive auction fund loans.

Minister of Land, Infrastructure and Transport Park Sang-woo is listening to questions from lawmakers at the hearing on support measures for victims of Jeonse fraud held by the National Assembly Land, Infrastructure and Transport Committee on the 25th. Photo by Kim Hyun-min kimhyun81@

At the hearing, Ahn Sang-mi, chairperson of the National Countermeasures Committee for Jeonse Fraud and Empty House Victims, who attended, was reported to have 'self-auctioned' the damaged property but was unable to receive auction fund loans. She gave up her job and engaged in victim advocacy activities, resulting in insufficient income to meet the 60% DTI requirement.

Chairperson Ahn stated, "Even though there are no other loans and this loan is targeted at Jeonse fraud victims using the house as collateral, the DTI regulation was applied, and the auction fund loan was not granted."

In response, criticism arose during the hearing, questioning whether "at least coordination or progress checks among related agencies should be conducted." When Justice Party lawmaker Yoon Jong-oh asked, "I believe a government cooperation system related to Jeonse fraud victim support is very important. Is there currently a meeting system in place?" Minister of Land, Infrastructure and Transport Park Sang-woo replied, "We do not operate a separate standing meeting body."

Minister Park stated, "We will consult with related agencies to apply the same DTI standards as HF to HUG's Didimdol loans for Jeonse fraud victims."