Junho Jung Vows to Protect Trust Fraud Victims Left in Legal Blind Spots

Junho Jung Proposes the “Trust Jeonse Fraud Victim Relief Act”
Aims to Enable Public Acquisition of Trust Fraud-Affected Homes and Strengthen Support for Victims

Junho Jung, member of the Democratic Party of Korea.

Junho Jung, a member of the Democratic Party of Korea representing Buk-gu Gap in Gwangju, announced on July 11 that he has introduced a bill to amend the Special Act on Support for Victims of Jeonse Fraud and Housing Stability (Trust Jeonse Fraud Victim Relief Act).

'Trust fraud' is considered the most complex and sophisticated type of jeonse fraud. In this scheme, the fraudster entrusts the property to a trust company, giving the company actual authority over the property. However, without properly informing the tenant, the fraudster signs a jeonse contract and then absconds with the deposit.

It is extremely difficult for victims to detect this in advance, and their legal rights are rarely recognized, making trust fraud one of the most malicious forms of jeonse fraud. Among all jeonse fraud victims (31,012 people), trust fraud victims account for 4% (1,245 people).

To address jeonse fraud, the government has allowed LH to directly purchase affected homes through auction. However, according to data analyzed by Junho Jung's office and submitted by LH, among the 1,069 homes purchased by LH so far, not a single one involved trust fraud. Although there have been 188 applications for the purchase of trust fraud-affected homes, the current law does not specify concrete procedures or methods for such purchases, which has prevented actual public acquisition.

The Trust Jeonse Fraud Victim Relief Act, proposed by Jung, would allow LH to prioritize the purchase of homes affected by trust fraud in the same way as it does for other types of jeonse fraud. If the amendment passes, it is expected that public acquisition of trust fraud-affected homes will become easier, leading to more effective support for victims.

Jung stated, "Last July, I first proposed the Trust Jeonse Fraud Prevention Act, which requires landlords to fully explain the trust register to tenants. This time, I have introduced the Trust Jeonse Fraud Relief Act to help victims recover their deposits. Because trust fraud is structurally complex and victims have had difficulty receiving legal protection, this amendment will open a path for those left in the blind spot to finally receive relief."