75% of Victims Are Young People, Most Cases Concentrated in Seoul Metropolitan Area
Relief Expanded with First Purchase of 'Illegal Structures'
An additional 860 victims of rental fraud have been recognized, bringing the total number of victims to over 30,000 in just two years.
The Ministry of Land, Infrastructure and Transport announced on June 1 that, following three full meetings of the Rental Fraud Victim Support Committee held last month (on the 7th, 14th, and 21st), 1,926 cases were reviewed and 860 of these were ultimately approved as victims.
As a result, since the special law went into effect on June 1, 2023, 30,400 cases (67%) out of 45,550 handled by the committee have been recognized as victims. Among these victims, 75% (22,837 people) were young people under the age of 40. The majority of cases were concentrated in the Seoul metropolitan area (60%), followed by Daejeon (11.7%) and Busan (10.9%). In most cases, the deposit amount was less than 300 million won.
Victim Application Committee Processing Status. Unit: Cases. Provided by the Ministry of Land, Infrastructure and Transport
1,066 Cases Did Not Meet Support Criteria... Objections and Reapplications Allowed
Of the 860 newly recognized victim cases last month, 759 were new applications or reapplications. The remaining 101 cases were objections to previous decisions, which, after additional review, were recognized as victims. Once recognized as a victim, individuals can receive government support for housing, financial, and legal procedures. The committee has approved a total of 997 requests for emergency suspension or postponement of foreclosure and auction proceedings. The Ministry of Land, Infrastructure and Transport is currently providing a total of 32,362 support services to recognized victims, including housing, financial, and legal assistance.
However, 1,066 cases were not recognized as victims this time. Of these, 624 cases were rejected for failing to meet the legal criteria for victim status. In 246 cases, applicants were excluded from support because they could recover their entire deposit through guarantee insurance or priority repayment. In 196 cases, objections were filed but were still dismissed for not meeting the requirements.
Even if not initially recognized as a victim, individuals can file an objection again under Article 15 of the Rental Fraud Victim Act. If circumstances change later, reapplication is also possible. For example, if the landlord goes bankrupt or the property is sold at auction and the deposit cannot be recovered, a new application can be submitted.
Victim Registration Decisions and Support Trends. Provided by the Ministry of Land, Infrastructure and Transport
LH Purchases Damaged Homes for Public Rental Support... First Purchase of 28 'Illegal Structures'
Victim support is also provided through the "Korea Land and Housing Corporation (LH) Purchase Rental" program. Under this system, LH purchases the victim's home through auction or other means, allowing them to live in public rental housing for up to 10 years. Although rent must be paid, if LH acquires the property at a low price, the difference is recognized as a "deposit." When moving out, the tenant receives this difference back, minimizing financial loss.
As of May 21, victims had submitted a total of 11,733 preliminary purchase consultation requests to LH. Of these, 4,156 cases have completed on-site inspections and internal reviews and have been informed that purchase is possible. To date, 669 damaged homes have actually been purchased.
This time, for the first time, 28 "illegal structures"?previously excluded from public purchase due to violations of the Building Act?were also acquired. Following a legal amendment last year, public entities can now purchase such properties at auction if they pass prior review by the local government’s building committee.
Park Jinhong, Director of the Victim Support Division at the Ministry of Land, Infrastructure and Transport, stated, "Since this is the first time illegal structures have been purchased, we will share these cases with local governments to enable the swift acquisition of damaged homes," adding, "We will strive to ensure broad support for victims."
Tenants who have suffered from rental fraud or are at risk of not recovering their deposit can apply for victim recognition with their local city or provincial government. Once recognized as a victim, they can receive information on various support measures through the Jeonse Damage Support Center of the Housing and Urban Guarantee Corporation (HUG) or their local LH branch.
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