Ruling and Opposition Aim for August National Assembly Plenary Passage
Final Coordination on Government Proposal Utilizing Auction Profits
The ruling and opposition parties are making final adjustments this month with the goal of passing the amendment to the "Special Act on Support for Jeonse Fraud Victims and Housing Stability (hereinafter Jeonse Fraud Special Act)" in the National Assembly plenary session. A government proposal is being discussed in which the Korea Land and Housing Corporation (LH) supports the rent of Jeonse fraud victims using the profits gained from auctioning off houses affected by Jeonse fraud. Positive evaluations have also come from the major opposition party, the Democratic Party of Korea, increasing the possibility of amendment after one year.
According to the National Assembly and the Ministry of Land, Infrastructure and Transport on the 20th, the Land, Infrastructure and Transport Committee held a subcommittee meeting on land-related bills and discussed nine proposed amendments to the Jeonse Fraud Special Act. After the full committee meeting the next day, they plan to pass the bill in the plenary session on the 28th.
The ruling and opposition parties had shown differences regarding the support methods for Jeonse fraud victims, but as the damage continues unabated, they judged that the bill could no longer be delayed. Since the enforcement of the Jeonse Fraud Special Act in July last year, the number of victims recognized by the government has reached 20,000. There have also been eight victims who took their own lives.
In May, the Democratic Party of Korea unilaterally passed an amendment to the Jeonse Fraud Special Act based on a "prior relief, later recovery" method. This method involves public institutions such as the Housing and Urban Guarantee Corporation (HUG) purchasing the deposit return claims first to refund part of the deposit, then claiming indemnity from the landlord or recovering funds by selling (auction or public sale) the Jeonse fraud-affected house. However, President Yoon Suk-yeol exercised his veto power, and the bill was discarded.
In response to the opposition party's push, the government proposed that LH purchase Jeonse fraud-affected houses at auction and supply them as public rental housing, supporting the rent. The supply target prioritizes the Jeonse fraud victims of the respective houses, and the key point is to pay the rent using the auction profits, allowing victims to live rent-free for up to 10 years. The Democratic Party, which has argued for cash support for victims, views this rent support as a form of similar assistance.
With increased chances of compromise between the ruling party, government, and opposition, the Ministry of Land, Infrastructure and Transport, the responsible ministry, is also making efforts to persuade Jeonse fraud victims covered by the law. Victims have demanded prior relief and later recovery since the enactment of the special law, but the government has drawn a line, stating that there is no precedent for compensating losses arising from private contracts. A ministry official said, "Minister Park Sang-woo personally held two online briefings to build consensus on the government proposal."
Meanwhile, the land-related bill subcommittee is also scheduled to discuss amendments to the "Act on Acquisition and Compensation of Land for Public Projects" and the "Special Act on Public Housing." On the previous day, Choo Kyung-ho, floor leader of the People Power Party, said at the supreme council meeting held at the Yeouido party headquarters, "I hope the ruling and opposition parties can come together and agree to pass as many urgent livelihood and economic bills as possible, including the Guha Law and the Jeonse Fraud Special Act."
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