National Planning Committee Proposes 'Rapid Action Task' for Support of Jeonse Fraud Victims to the Presidential Office

[Financial News] The Presidential Commission on National Planning has designated the improvement of systems to protect Jeonse fraud victims as a 'rapid action task' and proposed its reflection to the Presidential Office. The core measures include adjusting the protection criteria for small tenants and expediting the purchase procedures for damaged properties. Measures for the relief of trust fraud victims and securing transparency in review procedures are also included.
The National Planning Committee held a meeting with Jeonse fraud victims at the annex of the Government Seoul Complex on the 18th and disclosed these measures. The meeting was presided over by Planning Division Head Park Hong-geun, and attended by Lee Jeong-heon, Planning Commissioner of the Economic Division 2 of the National Planning Committee, Bok Gi-wang, a member of the Democratic Party of Korea (Chairman of the Jeonse Fraud Special Committee), Yeom Tae-young, a member (Secretary of the Jeonse Fraud Special Committee), Kim Se-yong, Planning Commissioner of the Economic Division 2, Kwon Ji-woong, an advisory member, as well as officials from the Ministry of Land, Infrastructure and Transport, the Ministry of Justice, Jeonse fraud victims, and civic groups.
The rapid action tasks proposed by the National Planning Committee include △changing the criteria for determining small tenants △shortening the purchase procedures for damaged properties △establishing a foundation for trust fraud relief △strengthening transparency in review procedures, totaling four tasks.
First, it includes changing the timing of the criteria for determining small tenants under the 'Housing Lease Protection Act' from the current 'time of acquisition of security rights' to 'time of lease contract'. Previously, there were repeated cases where even if one was a small tenant at the time of the contract, they were not protected due to security rights set later. The National Planning Committee expects that about 2,000 victims will be able to receive basic compensation such as priority repayment if the criteria are changed. They also stated that the amendment to the Housing Lease Protection Act should be promptly proposed.
The purchase of damaged properties will also be expedited. The National Planning Committee proposed a plan to quickly proceed with auction and public sale procedures through consultations with district courts and reduce the purchase period of damaged properties, which used to take more than 7 months on average due to violations of the Building Act, to within 3 months. It was also suggested that the amendment to the Jeonse Fraud Special Act should be proposed by August to expedite this.

A foundation for the relief of trust fraud victims in blind spots will also be established. The National Planning Committee proposed starting a survey on the status of rights relations of damaged properties in August-September and institutionalizing the procedure for trust companies to prioritize negotiations with Korea Land and Housing Corporation (LH) for sales.
Additionally, in cases where the review results of victim determination under the Jeonse Fraud Special Act are rejected, the transparency of the review process will be strengthened by requiring a detailed explanation of the reasons to the applicant. They stated that system improvements should be immediately initiated so that from October, applicants can receive explanations they can understand.
Planning Division Head Park Hong-geun said, "Jeonse fraud is a livelihood crime targeting youth and the underprivileged, as well as a social disaster," and "We will swiftly implement effective measures so that victims can receive the necessary protection."
Planning Commissioner Lee Jeong-heon said, "This measure will lay the foundation for the full-scale relief of trust fraud victims," and "If a rapid status survey is conducted and the reasons for victim determination results are explained in detail, more victims will be able to receive support under the special law through document supplementation or reapplication."
The National Planning Committee plans to continue discussions with related ministries based on this proposal and continue additional discussions so that the Presidential Office can reflect it as a rapid action task.

en1302@fnnews.com Jang In-seo Reporter