623 more jeonse fraud victims recognized in September, bringing cumulative total to 41,559

An additional 623 jeonse fraud victims were recognized last month, bringing the cumulative total of confirmed cases to 41,559.

The Ministry of Land, Infrastructure and Transport said Monday that the Jeonse Fraud Damage Support Committee held three plenary sessions in September, reviewed 1,642 cases and granted final victim status to 623 of them. Of the 623 approved cases, 579 were new applications — including reapplications — while 44 were cases in which applicants had filed objections to earlier decisions and were subsequently recognized as victims after additional review.

Of the cases reviewed, 583 were rejected for failing to meet victim eligibility requirements, and 208 were excluded from the special act's coverage because the tenants were able to recover their full deposits through guarantee insurance or priority repayment provisions. An additional 228 objections were dismissed.

Since the Jeonse Fraud Victims Act took effect in June 2023, the committee has processed 71,058 cases in total, of which 41,559 — or 58.5 percent — have been recognized as victims.

Young people under 40 accounted for 75.9 percent of recognized victims. By age group, those in their 30s made up the largest share at 50.7 percent, followed by those in their 20s at 25.2 percent.

In 97.7 percent of recognized cases, the rental deposit was 300 million won ($224,000) or less. By property type, multi-family homes accounted for the largest share at 28.3 percent, followed by officetels at 21.0 percent, multi-unit homes at 18.8 percent and apartments at 13.3 percent.

By region, the Greater Seoul metropolitan area accounted for 60.7 percent of all cases, led by Seoul with 12,021 cases, Gyeonggi Province with 9,317 and Incheon with 3,877.

The Korea Land and Housing Corporation had purchased 11,148 homes affected by jeonse fraud as of the end of last month. From January through September this year, the corporation acquired 6,157 such homes, averaging about 684 per month.

The Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation said they plan to accelerate home purchases by operating purchase review meetings and a fast-track process, and by continuing to coordinate with local district courts on auction proceedings. The cumulative total of residential, financial and legal support provided to victims reached 80,188 cases.

Tenants who have suffered jeonse fraud may apply for victim recognition through the metropolitan or provincial government with jurisdiction over their place of residence. Those granted victim status can receive guidance on available support measures at jeonse fraud damage and prevention support centers nationwide or at branches of the Korea Housing and Urban Guarantee Corporation.

Meanwhile, a partial amendment to the enforcement decree of the Special Act on Support for Jeonse Fraud Victims and Residential Stability was approved at a recent Cabinet meeting. Starting Nov. 13, recognized victims will be entitled to receive a minimum support payment and an advance payment, guaranteeing the return of one-third of their rental deposit.