A property listing notice posted at a real estate agency in Songpa-gu, Seoul. [Yonhap]
A property listing notice posted at a real estate agency in Songpa-gu, Seoul. [Yonhap]

The Ministry of Land, Infrastructure and Transport said Wednesday that the Jeonse Fraud Damage Support Committee held three plenary sessions in June, reviewed 1,409 cases and approved 548 as jeonse fraud victims or related victims.

Of the 548 approved cases, 505 were new applications. The remaining 43 were appeals of earlier decisions that were subsequently confirmed to meet the eligibility criteria under Article 3 of the Jeonse Fraud Victims Act and reclassified as fraud victims or related victims.

Of the remaining 861 cases, 458 were rejected for failing to meet the requirements, and 207 were excluded from coverage because full deposit recovery was possible through lease guarantee insurance or priority repayment provisions. An additional 196 appeals were dismissed after the committee determined they still did not meet the eligibility criteria.

The cumulative number of jeonse fraud victims and related victims recognized by the committee now stands at 39,669, with 1,201 emergency auction-deferral requests approved. Recognized victims have received a total of 68,415 instances of support covering housing, financial assistance and legal proceedings.

Tenants who were not recognized as jeonse fraud victims — or were classified only as related victims — may file an appeal under Article 15 of the Jeonse Fraud Victims Act. Even if an appeal is dismissed, they may reapply if relevant circumstances change and seek full victim recognition.

Korea Land and Housing Corp. (LH) has purchased 9,707 units of jeonse fraud-affected housing to date, averaging 784 units per month. Purchases stood at just 90 units for all of 2024, but surged to 3,932 units in the second half of last year and reached 4,708 units in the first half of this year.

The ministry and LH are running purchase review meetings and a fast-track process to accelerate acquisitions, and plan to continue coordinating with district courts on auction proceedings to support housing stability for victims.

The measures are part of a jeonse fraud victim support package announced in February. A "minimum guarantee" scheme for fraud victims and a "pay-first, settle-later" system for victims of unauthorized contracts — including trust fraud — are set to launch in November. A separate measure to speed recovery for victims of joint-collateral fraud will take effect in July, ahead of those programs.

Tenants affected by jeonse fraud may apply for victim recognition through the municipal or provincial government where they reside. Those recognized by the committee can receive detailed guidance on available support through the Korea Housing Finance Corp. (HUG) Jeonse Damage Support Center and its branch offices.


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