623 More Jeonse Fraud Victim Cases Recognized in September; Cumulative Total Reaches 41,559

[Financial News] The government recognized 623 additional cases involving jeonse fraud victims and others in September. Since the Act on Special Cases concerning the Prevention of Damage from Jeonse Fraud and the Protection of Victims took effect in June 2023, the cumulative number of recognized cases has risen to 41,559.
According to the Ministry of Land, Infrastructure and Transport on the 12th, the Jeonse Fraud Victim Support Committee held three plenary meetings last month, on the 9th, 16th and 30th, and reviewed a total of 1,642 cases.
Of the 623 cases approved, 579 were new or repeat applications. The remaining 44 were appeals against previous decisions; an additional review confirmed that they met the requirements under the Act on Special Cases concerning the Prevention of Damage from Jeonse Fraud and the Protection of Victims.
Of the 1,019 cases that were not approved, 583 were rejected for failing to meet the legal requirements. Another 208 were excluded because their applicants could recover their full deposits through such means as guarantee insurance or priority repayment. A further 228 appeals were rejected after a new review found that they still did not meet the requirements.
The committee has processed a total of 71,058 cases concerning decisions on jeonse fraud victim status. Of these, 41,559 were approved and 16,776 rejected. A total of 7,264 were excluded, while 5,459 appeals were rejected.
The committee has reviewed a cumulative 1,366 requests for cooperation in deferring court and public auctions in urgent cases, recognizing 1,251. Support provided to victims, including housing, financial and legal assistance, totals 80,188 cases.
Tenants who were not recognized as jeonse fraud victims or were classified under the law as belonging to one of its victim categories may appeal. Even if an appeal is rejected, they may apply again if the relevant circumstances subsequently change.
As of the end of last month, the Korea Land and Housing Corporation (LH) had purchased 11,148 homes affected by jeonse fraud. From January through September this year, it purchased a total of 6,157 homes, averaging 684 per month.
The pace of purchasing affected homes rose from 90 for all of 2024 to a monthly average of 163 in the first half of last year and 654 in the second half. The Ministry of Land, Infrastructure and Transport and LH plan to shorten the purchase period by holding purchase review meetings, operating a fast track and coordinating with district courts on resuming auction proceedings.
When a victim asks LH to purchase the home, the public sector buys it after procedures that include prior consultations and review, as well as participation in court and public auctions. Victims can convert the auction surplus into a deposit and remain in their existing home for up to 10 years; when they move out, they can receive the auction surplus.
Applications for a determination of jeonse fraud victim status can be filed with the city or province that has jurisdiction over the applicant’s residence. Those recognized as victims can learn about available support measures through Jeonse Damage and Prevention Support Centers nationwide and branches of the Housing and Urban Guarantee Corporation (HUG).
[email protected] Choi Ga-young Reporter