Agreement on Amendment at the National Land Committee Subcommittee on the 20th
Six-Month Survey to Improve Inadequate Areas
Double Contracts Recognized as Victims... Deposit Limit Raised
Through bipartisan agreement, victims of jeonse fraud can now recover their deposit losses through auction profits or reside in public rental housing for homes purchased by the Korea Land and Housing Corporation (LH). If victims choose to receive auction profits, they can move out immediately, and if they do not wish to live in public rental housing, they can reside in private housing through the 'jeonse rental' method.
On the 20th, the ruling and opposition parties agreed to pass the amendment to the Special Act on Jeonse Fraud at the Land, Infrastructure and Transport Committee’s bill review subcommittee. The opposition’s views on addressing blind spots in the government and ruling party’s plan to support victims through auction profits and public rental housing were partially reflected. Although the opposition saw issues with fairness and practicality in the government and ruling party’s proposal, they agreed to prioritize faster victim relief. Both parties will conduct a fact-finding survey during the six months following the law’s implementation to improve any shortcomings.
The scope of victims has also been expanded through this agreement. Cases previously unrecognized as victims due to double contracts are now acknowledged and eligible for relief. The maximum limit for recognizing jeonse fraud victims based on the jeonse deposit has been raised from 500 million KRW to 700 million KRW. Victims with jeonse contracts up to 700 million KRW can now be protected under the special law.
To guarantee victims’ housing rights, the plan to provide homes purchased by LH as public rental housing now includes the jeonse rental method. This is because victims may not want public rental housing or there may be a shortage of public rental housing units in certain regions.
Even in cases where jeonse fraud victims receive auction profits and move out, their options have increased. Previously, moving out was only allowed for specific reasons such as job relocation or illness. The amended bill removes restrictions on reasons for moving out during the review process.
The bill also considers changes in victims’ housing needs. Since a high proportion of jeonse fraud victims are young people who may require larger homes due to marriage or childbirth, provisions have been added to supply public rental housing larger than their previous homes.
Although the ruling and opposition parties have reached an agreement, the amendment has not yet been fully passed. It will go through the full Land, Infrastructure and Transport Committee meeting on the 21st, followed by procedures such as a plenary session vote at the National Assembly by the end of this month.
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