Effect of HUG’s Dedicated Auction Division: Average Monthly Cases in Busan Quadruple

[Financial News] The average monthly number of auction cases handled in Busan quadrupled after a dedicated division was established to process Korea Housing & Urban Guarantee Corporation (HUG) cases. As auctions are processed more quickly, the measure is expected to help shorten the recovery period for subrogated claims and expand the supply of Dundeun Jeonse Housing.
According to HUG on the 11th, Busan District Court established a dedicated auction division for HUG cases on July 1. The separate division was created to process cases more quickly as HUG’s auction applications increased in Busan.
Before the dedicated auction division was established, HUG handled an average of 43 auction cases per month from January through June this year. The figure rose to an average of 181 cases per month in July and August, an increase of approximately fourfold.
Previously, HUG auction cases were handled by general auction divisions alongside other cases. Their transfer to the dedicated auction division helped improve processing speed.
The dedicated division was established through cooperation among the National Court Administration, Busan District Court and HUG, which agreed on the need to expedite auction procedures. HUG plans to discuss ways to further shorten case-processing times through regular consultations with Busan District Court.
Faster auction procedures are expected to shorten the time required for HUG to recover subrogated claims it holds after paying jeonse deposits on behalf of landlords. HUG also expects the measure to have a positive effect on expanding the supply of Dundeun Jeonse Housing in Busan.
Dundeun Jeonse Housing is public rental housing that HUG purchases directly after returning jeonse deposits on behalf of landlords and applying for auctions, then supplies to people without homes at jeonse rates below market prices.
HUG President Choi In-ho said, "As auction processing is expedited, we expect not only to shorten the period for recovering claims but also to expand this cooperation model to courts in other regions facing similar difficulties."
[email protected] Choi Ga-young Reporter