Nearly 30,000 Jeonse Fraud Victims... LH Urges Applications for Support

The number of victims of jeonse fraud has been tallied at nearly 30,000. According to Korea Land and Housing Corporation (LH) on May 29, a total of 29,859 cases had been recognized as victims or related parties through the Jeonse Fraud Victim Support Committee of the Ministry of Land, Infrastructure and Transport as of May 21. This represents an increase of about 300 people compared to the figures compiled earlier this month.

LH has begun encouraging more people to apply for victim support in order to increase the number of beneficiaries. The company is providing support for victim deposits using auction proceeds and offering housing assistance. On the previous day, about 650 people attended a briefing session for victims held at the LH Gyeonggi Southern Regional Headquarters. This session targeted victims whose properties were subject to auction but who had not yet applied to LH for advance purchase. LH estimates that there are about 1,800 unregistered victims in the southern Gyeonggi region.

Previously, about 250 victims attended a briefing session held last month in Michuhol District, Incheon. This area is also considered a hotspot for jeonse fraud. LH provides information on measures such as purchasing jeonse fraud-affected homes and converting them to public rental housing, residential support for affected households, and deposit preservation plans.

About 650 people attended the briefing session for victims of jeonse fraud held on the 28th at the LH Gyeonggi Southern Regional Headquarters. Photo by LH

Since the amendment to the Special Act on Jeonse Fraud took effect in November last year, LH has been supporting victims in recovering their deposits using auction proceeds, in addition to providing housing support. Since the amendment, there have been 11,733 applications for LH victim support. LH reports that the deposit recovery rate through auction proceeds is around 78%. According to the Special Act, applications for advance consultation on the purchase of affected homes can be made within three years from the date a person is officially recognized as a victim of jeonse fraud (or trust fraud).