Special Lease Fraud Act Passed by National Assembly... 'LH Public Rental Housing' Provided for Up to 20 Years

The "Act on Support for Jeonse Fraud Victims and Special Measures for Housing Stability Amendment (Jeonse Fraud Special Act)" passed the National Assembly plenary session on the 28th.

The amendment expands the scope of recognition for victims of jeonse fraud and provides for the provision of the affected housing to victims as public rental housing for up to 20 years.

Previously, in the 21st National Assembly, the Democratic Party of Korea unilaterally passed the Jeonse Fraud Special Act based on a "compensation first, recovery later" approach, but it was discarded after President Yoon Seok-yeol exercised his veto power and a re-vote.

The passed amendment allows victims to reside in the affected housing, which the Korea Land and Housing Corporation (LH) acquires through auction and provides as public rental housing, for a basic period of 10 years. If they wish to stay longer, they can pay rent at the level of general public rental housing and reside for an additional 10 years.

[Image source=Yonhap News]

If victims do not wish to live in the affected housing, they can choose to receive the auction profit and vacate, or opt for "jeonse rental," where LH directly signs a jeonse contract and rents private housing.

The limit on the deposit amount for recognizing victims of jeonse fraud has been raised from the previous "up to 300 million KRW" to "up to 500 million KRW," and the local government head of the area where the affected housing is located can manage and supervise the safety of the housing.

The amendment will take effect immediately upon promulgation. However, some provisions, such as those related to the purchase of jeonse fraud victim housing, will have a grace period of two months after the law is promulgated.