The number of cases recognized as eligible for government support due to jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) fraud is approaching 40,000. The government plans to support victims' housing stability by expanding the purchase of affected homes through the Korea Land and Housing Corporation (LH), along with parallel financial assistance.
The Ministry of Land, Infrastructure and Transport (MOLIT) said Thursday that it held three plenary meetings of the Jeonse Fraud Victim Support Committee in April and finalized a total of 855 cases as jeonse fraud victims. Of these, 789 were new applications, while 66 were cases in which additional damages were confirmed through appeals following earlier decisions.
As a result, the cumulative number of recognized victims since the enforcement of the Jeonse Fraud Victims Act in June 2023 has risen to 38,503.
In the latest review, 61.0% of all applicants were recognized as victims. Meanwhile, 22.2% were rejected for failing to meet the requirements, and 9.9% were excluded from the support scope after being deemed capable of recovering their full deposit through measures such as the top-priority reimbursement system.
The government is also expanding LH's program to purchase affected homes to stabilize victims' housing. To date, LH has acquired 8,357 homes damaged by jeonse fraud. Under the program, LH takes over the right of first refusal from victims, wins the property through auction or public sale procedures, and then provides it back as public rental housing.
Victims can convert the auction gains — the difference between the normal purchase price and the lower winning bid — into a deposit and continue living in the same home for up to 10 years. When they eventually move out, they receive the auction gains to help them recover from their losses.
The pace of purchases is also accelerating. LH acquired an average of 840 units per month from the start of this year through last month. As of March 28, a total of 22,064 jeonse fraud victims had requested preliminary consultations, of which 15,020 cases received an "eligible for purchase" ruling.
Tenants who have suffered jeonse fraud damages can apply for victim status with the city or provincial authorities where they reside. Once recognized as a victim, they can receive information on various support programs through the Housing and Urban Guarantee Corporation (HUG) Jeonse Damage Support Center.
The government is also running financial support measures in parallel. For victims unable to repay jeonse loans due to the fraud, guarantee institutions first make subrogated payments, after which victims can repay the amount interest-free in installments over up to 20 years. KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Industrial Bank, and Kakao Bank currently operate the "long-term installment repayment program," and customers can receive guidance on how to use it through in-branch consultations.
