Seoul to cover repair costs for jeonse fraud victims whose landlords have vanished

Tenants who fell victim to jeonse fraud and have been unable to get leaks fixed or boilers repaired because their landlords disappeared will soon be able to claim repair costs from the Seoul Metropolitan Government.

Seoul announced Sunday that it is expanding its safety management support for jeonse fraud-affected housing to cover the interior of individual units, in addition to the common areas of buildings already covered under the existing program.

To qualify, tenants must be recognized as jeonse fraud victims under the Special Act on Support for Jeonse Fraud Victims, be currently living in the affected property, and have a landlord who is either missing or unreachable. Seoul will cover actual repair costs of up to 5 million won ($3,620) for urgent work including waterproofing, insulation, heating and plumbing, electrical systems, and windows. Simple interior renovations and structural changes requiring permits are excluded. The urgency of repairs will be assessed through an on-site expert inspection after an application is submitted. Tenants may apply directly for interior unit repairs even when the landlord cannot be contacted.

Existing support for common-area repairs and fire and elevator safety management will continue. Maintenance costs for common areas can be covered up to 20 million won, depending on the number of units, and must be applied for by a representative of a building where jeonse fraud victims account for at least one-third of all units.

The expansion follows a May amendment to the Special Act on Support for Jeonse Fraud Victims and Residential Stability, which broadened local governments' authority to manage fraud-affected properties.

Applications are accepted year-round. Once selected through document review and an on-site inspection, applicants must complete repairs and submit completion documents within 40 days of receiving notification to receive the subsidy. Applications can be submitted by email to Seoul's Housing Welfare Division or in person or by mail to Seoul City Hall's Seosomun 2 Annex at 124 Seosomun-ro, Jung-gu, Seoul. Detailed guidance is available through Seoul's Jeonse and Monthly Rent Comprehensive Support Center.

According to the Ministry of Land, Infrastructure and Transport, the cumulative number of cases recognized as jeonse fraud victims under the act reached 40,278 as of the end of July, with 609 cases added in a single month. By region, Seoul had the highest count at 11,688 cases, followed by Gyeonggi Province with 8,925, with the greater Seoul area accounting for 60.7 percent of the total. By age, those under 40 made up 75.94 percent of victims, indicating that losses have been concentrated among young people including those just entering the workforce and newlyweds. By housing type, multi-family homes accounted for the largest share at 28.7 percent, followed by officetel units at 20.8 percent and multi-household homes at 18.5 percent.

In terms of deposit amounts, cases involving deposits of 100 million won or less accounted for 42.0 percent of the total, while those between 100 million won and 200 million won made up 43.4 percent — together representing 85.4 percent of all cases, showing that losses have been concentrated among tenants with smaller deposits. Cases involving deposits of 300 million won or less accounted for 97.6 percent of the total, a profile that overlaps significantly with the low-cost, small-unit tenants Seoul's new support targets. A pan-government special crackdown on jeonse fraud launched by the Korean National Police Agency in July 2022 had resulted in 10,742 arrests and 704 detentions over three years as of last July, with cumulative confirmed losses reaching 3.21 trillion won.

Seoul's decision to extend support to individual unit interiors reflects the fact that Seoul and small-deposit tenants account for the largest share of victims.

"We will reduce the blind spots where tenants in fraud-affected homes — with landlords who have gone missing — have had to shoulder repair costs for leaks and boilers on their own," said Myeong No-jun, head of Seoul's Housing Bureau. "We will strengthen practical support to help victims rebuild their daily lives."