A Total of 32,185 Recognized Victims Since the Special Law in June 2023
LH Accelerates Purchase of Victimized Homes... 1,440 Units Acquired
The government has officially recognized an additional 748 victims of jeonse fraud. As a result, the total number of people officially recognized as victims by the government has now surpassed 32,000.
On August 4, the Ministry of Land, Infrastructure and Transport announced, "The Jeonse Fraud Victim Support Committee held three plenary meetings since July 9, reviewed 1,629 applications for victim recognition, and finally approved 748 cases as victims of jeonse fraud or similar cases." Of these, 630 cases were newly filed, while the remaining 118 cases involved tenants who had previously been rejected or had been deemed outside the scope of recognition but were newly recognized as victims through an appeal process.
In contrast, 504 cases that did not meet the requirements were rejected, and 167 cases where tenants had already recovered their deposits in full through guarantee insurance or the priority repayment system were excluded from support. Among the appeals, 210 cases were also dismissed for still failing to meet the requirements.
As a result, since the special law came into effect in June 2023, the cumulative number of officially recognized jeonse fraud victim cases has reached a total of 32,185. There have been 1,027 cases where foreclosure or auction suspensions were granted to ensure housing stability for victims, and a total of 36,141 instances of individual support have been provided, including housing, financial, and legal counseling.
Following the amendment of the special law in November last year, the government, through Korea Land and Housing Corporation (LH), has purchased a total of 1,440 victimized homes via negotiation or auction. As of the end of last month, victims had requested a total of 15,267 preliminary consultations, and among these, 7,870 cases have completed on-site investigations and purchase deliberations, with LH responding that purchase is possible.
Applications for the purchase of victimized homes are increasing rapidly. Looking at monthly purchase figures: 44 homes were purchased in January, 108 in March, 262 in May, 306 in June, and 373 in July, showing a steep rise. LH has also purchased 154 homes that were in violation of the Building Act.
The LH victimized home purchase program involves LH acquiring the right of first refusal from victims, purchasing the homes through foreclosure or auction, and then providing them as public rental housing to support victims’ housing stability. In particular, if LH acquires a home at a price lower than the appraised value, the resulting 'auction surplus' is converted into the tenant’s deposit, allowing victims to live there for up to 10 years virtually rent-free. Upon moving out, this surplus is paid out in a lump sum to compensate for any deposit loss.
The government plans to further expand housing stability measures for jeonse fraud victims in the future. Victims can apply for recognition through their local government, and once confirmed through committee review, they can receive information on various support measures such as financial assistance and rental support at the Jeonse Fraud Victim Support Center of the Housing and Urban Guarantee Corporation (HUG) or at local branch offices.
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