Cumulative purchases of jeonse fraud-affected homes reach 9,033 units

A residential neighborhood of villas and multi-unit homes in Hwagok-dong, Gangseo-gu, Seoul. [Yonhap]
A residential neighborhood of villas and multi-unit homes in Hwagok-dong, Gangseo-gu, Seoul. [Yonhap]

The Ministry of Land, Infrastructure and Transport said Tuesday it held three plenary sessions of the Jeonse Fraud Damage Support Committee during May, approving a total of 618 cases as recognized jeonse fraud victims.

The committee reviewed 1,609 cases during the month. Of the 618 approved, 579 were new or resubmitted applications, while the remaining 39 were previously rejected applicants who appealed and were confirmed to meet victim eligibility requirements.

Of the total cases reviewed, 599 were rejected for failing to meet eligibility requirements, and 198 were excluded from support because the applicants could recover their full deposits through lease guarantee insurance or priority repayment provisions. Among those who filed objections to earlier decisions, 194 appeals were dismissed.

With the latest additions, the cumulative number of cases approved as jeonse fraud victims now stands at 39,121. Of those, 97.6 percent involved deposits of 300 million won (about $194,000) or less. The Greater Seoul metropolitan area accounted for 60.6 percent of approved cases, followed by Daejeon at 11.2 percent and Busan at 10.3 percent.

Emergency auction deferral requests have been granted in a cumulative 1,182 cases, and victims have received a total of 66,417 instances of support covering housing, financial and legal assistance.

Tenants whose cases were not recognized or whose appeals were dismissed may reapply if their circumstances change.

Meanwhile, Korea Land and Housing Corp. (LH) had purchased a cumulative 9,033 jeonse fraud-affected homes as of May 26. This year, LH has averaged 807 purchases per month — totaling 4,036 units — up from 655 per month in the second half of last year, a sustained acceleration in the acquisition pace. The ministry and LH are operating a fast track to speed up purchases further and plan to continue working with local courts to advance auction proceedings.

Tenants affected by jeonse fraud may apply for victim recognition through the metropolitan or provincial government where they reside. Those designated as victims can receive detailed guidance on available support through the Korea Housing Finance Corp. (HUG) Jeonse Damage Support Center and its branches nationwide.


hwshin@heraldcorp.com