480 more jeonse fraud victims approved; purchased properties reach 11,542 units

The Ministry of Land, Infrastructure and Transport said Thursday it had held three plenary sessions of the Jeonse Fraud Victim Support Committee, reviewing 1,331 cases and approving a total of 480 as jeonse fraud victims or equivalent. The cumulative number of jeonse fraud-affected properties purchased now stands at 11,542 units.

Of the 480 approved cases, 436 were new applications, including reapplications, while 44 were appeals against earlier decisions that were subsequently found to meet the requirements under Article 3 of the Jeonse Fraud Victim Protection Act and were recognized as victims or equivalent.

Of the remaining 851 cases, 520 were rejected for failing to meet the requirements, and 152 were excluded from the scheme because full deposit recovery was possible through guarantee insurance or priority repayment provisions. An additional 179 appeal cases were dismissed after being found to still fall short of the required conditions.

The total number of jeonse fraud victims and equivalent cases decided by the committee now stands at 42,039, with 1,270 cases granted emergency auction suspension requests. Those recognized as victims are receiving support across 84,534 cases covering housing, financial assistance and legal proceedings.

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

Korea Land and Housing Corporation has purchased a cumulative 11,542 jeonse fraud-affected properties to date, with a monthly average of 655 units acquired so far this year. The annual total stood at just 90 units throughout 2024 but has risen to 6,551 units as of October this year.

Under the property purchase scheme established by Article 25 of the Jeonse Fraud Victim Protection Act, Korea Land and Housing Corporation exercises a preferential purchase right at the request of jeonse fraud victims, acquiring the properties through auction or public sale on behalf of public housing operators.

The Ministry of Land, Infrastructure and Transport and Korea Land and Housing Corporation 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.

Tenants affected by jeonse fraud may apply for victim recognition through the metropolitan or provincial government in their area of residence. Those recognized as victims through a committee vote can receive detailed guidance on available support measures through jeonse fraud victim and prevention support centers and branch offices nationwide.

Meanwhile, the Ministry of Land, Infrastructure and Transport and Korea Housing and Urban Guarantee Corporation are running a safe-contract consulting program at jeonse fraud victim and prevention support centers nationwide, allowing prospective tenants to check property rights and contract risks before signing a lease.