Ruling Party Lawmaker Bok Giwang: "Prepayment and Post-Settlement of Minimum Guaranteed Amount for Jeonse Fraud Victims"

Relief Extended to Victims of Trust Fraud and Collective Collateral

Bok Giwang, lawmaker of the Democratic Party of Korea, announced on the 26th that he would introduce a system to support victims of jeonse fraud, under which a minimum guaranteed amount would be paid in advance, and if any remaining amount is generated after the Korea Land and Housing Corporation (LH) purchases the property, an additional payment would be made.

Bok Giwang, Democratic Party lawmaker, Yonhap News

Bok, who serves as the Democratic Party of Korea secretary on the National Assembly Land, Infrastructure and Transport Committee and as chair of the party's Special Committee on Jeonse Fraud, made this remark at a policy coordination meeting held at the National Assembly on Thursday morning, saying, "In practice, there has been no way to provide relief for victims of unauthorized contracts such as trust fraud, or for victims living in properties used as collective collateral."

He first stated that he would eliminate blind spots in the Special Act on Jeonse Fraud through the introduction of a "minimum guarantee system." Bok said, "We will prevent damage by introducing a minimum guarantee system that ensures the recovery of a certain percentage of the jeonse deposit for victims of jeonse fraud whose auction or public sale has already been completed," adding, "We will also apply this retroactively to victims whose auction or public sale has already ended."

He also mentioned a "prepayment and post-settlement" plan, under which the minimum guaranteed amount would be paid first to victims of jeonse fraud. Bok explained, "Victims of collective collateral have had to wait endlessly just to receive a portion of the difference remaining after the auction," and added, "We will make it possible for them to be granted relief as well through prepayment."

Bok said, "The 28th is the day when the first casualty emerged in Michuhol-gu, Incheon," adding, "I regret that these countermeasures are being announced so late, and I report them to you with a heavy heart."