"Recovered an Average of 78% of Jeonse Fraud Losses"...Subsequent Priority Sometimes Recovers 'Full Amount'

Ministry of Land, Infrastructure and Transport: "Effectiveness of LH Purchase Project... Full Deposit Recovery Cases in Incheon"
28,666 Jeonse Fraud Victims Recognized... 69% Approval Rate, 75% Are Young People
Recovery Accelerates with 'Fast Track' Introduction... 307 Actual Purchases in Progress

The Ministry of Land, Infrastructure and Transport announced on the 1st that "an analysis of 44 cases of purchased and settled houses through the Jeonse fraud victim house purchase project showed an average recovery rate of 78% for the victim's deposit." It evaluated that since the enforcement of the revised 'Jeonse Fraud Victim Act,' support for victims' housing stability and loss recovery has been producing tangible effects.

The Jeonse fraud victim house purchase project involves LH acquiring the right of first refusal from victims, purchasing houses through auctions and public sales, and providing them as public rental housing. In this process, auction profits are converted into the victim's deposit, allowing them to live rent-free for up to 10 years or receive the profits in cash upon moving out.

In particular, the recovery rate for subordinate victims has significantly improved. Twenty-eight subordinate victims, who could only recover 37.9% of their deposits through auction procedures alone, recovered an average of 73% through LH's purchase and auction profit support. In Michuhol-gu, Incheon, there were even two cases where the full deposit was recovered.

The decision process for Jeonse fraud victims is also accelerating. During the full meetings (60th to 62nd sessions) of the Jeonse Fraud Victim Support Committee held in March, 2,062 cases were reviewed, and 873 were approved as victims. This brings the cumulative number of victim decisions to 28,666 cases, with an approval rate of about 69%.

Most victims reside in the Seoul metropolitan area (60.5%), and deposits of 300 million KRW or less account for 97% of the total. The housing types were in the order of multi-family houses, officetels, and multi-household houses, and by age group, about 75% were young people under 40.

The Ministry of Land, Infrastructure and Transport has introduced a 'fast track' that simplifies the prior consultation process to accelerate victim recovery and is continuously consulting with courts and related agencies to expedite auction and public sale procedures. So far, a total of 9,889 prior consultation requests for purchases have been received, and among them, 307 victim houses have actually been purchased.

Park Jin-hong, head of the Victim Support Division at the Ministry of Land, Infrastructure and Transport, said, "Since the enforcement of the revised special law, the LH purchase project has served as a practical recovery measure not only for subordinate victims and those with small deposits but also for other victims," adding, "We will spare no institutional support so that Jeonse fraud victims can return to their daily lives as soon as possible."