Measures for designing a compensation system to prevent property rights damage such as jeonse fraud or loan fraud arising from "false registration" — meaning fake or invalid real estate registrations — were discussed.
The National Court Administration of the Supreme Court and the Institute for Legal Studies at Sogang University said they held a joint academic conference on the afternoon of the 10th in the main auditorium on the first floor of the Supreme Court, under the theme "Designing a Compensation System for Damage Caused by False Registration."
False registration refers to a registration that does not match the actual rights relationship, meaning a fake or invalid real estate registration. The National Court Administration explained that "under current law, when a registration that does not conform to the actual relationship arises due to document forgery or similar causes, there is a problem in which the counterparty who transacts trusting the register loses rights such as ownership."
The conference was arranged to establish an institutional foundation that can provide relief for property rights damage arising from false registration, and to explore policy and legislative tasks aimed at enhancing the credibility and safety of the real estate registration system.
Kim Ki-hwan, a professor at the University of Seoul School of Law, served as the first-session presenter and proposed a "three-tier mixed compensation model" — centered on a public compensation fund and linking state compensation with title insurance (insurance that compensates for losses that real estate owners and mortgagees may incur due to defects in real estate rights) — as an alternative suited to Korea's realities. Professor Kim recommended that the most important funding method be based on accumulating registration application fees, while creating basic funding through government contributions in the early stages of establishing the fund, and using supplementary funding sources in parallel, including linkage with mutual aid funds of qualified professional organizations, recovery of indemnity claims, and utilization of title insurance.
Gong Min-a, a judge at the Judicial Policy Research Institute, pointed out in the discussion that "the relationship between the public fund and title insurance must be more clearly organized," and noted the difficulty of obtaining social consensus on raising registration fees to secure funding.
Lee Eun-sang, a professor at Seoul National University School of Law, suggested in the second presentation that enacting a special law for the compensation system appears desirable.
The Judicial Registration Bureau said it plans to develop concrete plans to provide substantial relief for citizens who have suffered damage from false registration and to enhance judicial trust, based on the opinions discussed at this conference and the results of a policy research service scheduled to be completed in early September this year. In his congratulatory address, Supreme Court Justice Kwon Young-jun assessed the design of the compensation model and the plan to reorganize laws and regulations as a timely milestone, and expressed hope that harmonizing the public fund with title insurance and establishing swift and fair relief procedures would become the starting point for substantial protection of citizens' property.
Meanwhile, Lee Kook-hyun, director general of the Judicial Registration Bureau of the National Court Administration, introduced "AI Registration for Citizens' Peace of Mind" as the registration system's development plan for the next 10 years. In this regard, the National Court Administration is currently conducting an Information Strategy Planning (ISP) project on AI registration.
