MOLIT Approves Support for 658 Jeonse Fraud Victims in August; Total Surpasses 40,000

[Financial News] The Ministry of Land, Infrastructure and Transport (MOLIT) recognized 658 applicants as victims of jeonse fraud during August in connection with support for those affected.
According to MOLIT on the 7th, the Jeonse Fraud Victims Support Committee held three meetings on the 5th, 19th and 31st of last month. Of the 1,798 cases received, it ultimately approved 658 as victims of jeonse fraud and others.
Of the 658 approved cases, 627 were new applications, including reapplications. The remaining 31 applicants had filed objections to previous decisions, and an additional review confirmed that they met the requirements. They were recognized as victims of jeonse fraud and others.
Of the remaining 1,140 cases that were not approved, 626 were rejected because they failed to meet the requirements. Another 239 were excluded because their full jeonse deposits could be returned through guarantee insurance or preferential repayment amounts. In addition, 257 cases involving objections were rejected again after the committee determined that they still did not meet the requirements.
Since its launch, the committee has recognized a total of 40,936 people as victims of jeonse fraud and others. This represents 59% of the 69,416 cases it reviewed. The committee also approved 1,225 requests for emergency postponement of court auctions and public sales, while support for recognized victims—including housing, financial and legal assistance—totaled 77,805 cases.
Tenants may file an objection even if the committee has not recognized them as victims of jeonse fraud or has denied their applications. If an objection is rejected, they may reapply and be recognized as victims if their circumstances change.
As of the 31st of last month, Korea Land and Housing Corporation (LH) had purchased a total of 10,718 homes affected by jeonse fraud. The monthly average number of purchases this year is 716, continuing a steady increase since 2024.
MOLIT and LH are operating purchase review meetings and a fast track to accelerate the acquisition of affected homes. They also plan to continue consultations with district courts on proceeding with auctions to support housing stability. Tenants experiencing difficulties because of jeonse fraud may apply for recognition as victims through the city or province with jurisdiction over their residence.
Meanwhile, MOLIT and Korea Housing & Urban Guarantee Corporation (HUG) are pursuing a program that will provide safe-contract consulting at eight Jeonse Damage Prevention Support Centers nationwide. The program is designed to allow prospective tenants to check property rights and potential contract risks before signing. At any of the eight centers, prospective tenants can receive consultations on analyzing the rights and encumbrances of the property they plan to lease and reviewing the wording of the lease contract.



[email protected] Jung Kyung-soo Reporter