Jeonse Fraud Victims to Live Rent-Free for 10 Years in LH Purchased Housing

'Jeonse Fraud Special Act' Amendment Enforced from the 11th
Support Provided for the Difference Between Appraised and Winning Bid Prices
Additional Funding Planned if Insufficient
Jeonse Fraud Victims Allowed Up to 10 Years of Free Residence

From the 11th, victims of jeonse fraud can effectively live rent-free for up to 10 years in purchase housing managed by the Korea Land and Housing Corporation (LH). The victims' rental fees are supported by the auction profit (LH appraised value - winning bid price) generated when LH acquires the jeonse fraud victim's house through auction.

LH announced on the same day that it will begin supporting victims with these measures following the enforcement of the amendment to the "Special Act on Support for Jeonse Fraud Victims and Housing Stability (Jeonse Fraud Special Act)."

When LH purchases a jeonse fraud victim's house and supplies it as public housing, the victim can live in the house rent-free for up to 10 years. If the victim wishes, they can extend their stay for an additional 10 years under rental conditions at about 30-50% of the market price.

At this time, the victim's rental fee support is provided through LH's auction profit from the victim's house. If LH buys the victim's house at a price lower than expected at auction, LH's profit effectively increases. This profit increase is regarded as auction profit and used for the victim's rent. If the profit is insufficient, public funds are used to guarantee the victim's 10 years of rent-free residence.

Additionally, if the victim tenant moves from the LH housing to another place and there is auction profit remaining, this amount is paid to the victim. This is a measure to support the recovery of deposit losses.

Furthermore, LH has expanded the scope of houses eligible for purchase to include all victim houses. Previously, houses that were illegal constructions, victims of trust fraud, or houses with senior tenants were not purchased, but going forward, these houses will also be included as purchase targets.

The support contents of this amendment can be applied retroactively to victims of jeonse fraud houses that LH completed purchasing before the law's enforcement date. Victims who were previously notified that purchase was not possible due to illegal construction before the law amendment can reapply.

Preliminary consultation for purchasing victim houses can be applied for within 3 years from the date the applicant is determined to be a jeonse fraud victim. Applications can be submitted by visiting or mailing the Jeonse Fraud Support Team at the LH regional headquarters near the victim house location. Detailed information is available in the "Integrated Announcement on Jeonse Fraud Victim House Purchase" on LH's Subscription Plus platform.

Lee Han-jun, President of LH, said, "We will faithfully fulfill LH's fundamental role of ensuring national housing stability and support the prompt housing stability and daily recovery of jeonse fraud victims without any setbacks."

Meanwhile, according to the Ministry of Land, Infrastructure and Transport's "Jeonse Fraud Victim Support Committee," as of the 25th of last month, there are 23,730 victims of jeonse fraud.