Jeonse fraud victims top 41,500 as 623 more recognized in September
Korea recognized 623 more jeonse (lump-sum deposit) fraud victims in September, bringing the total to 41,559. Nearly three in four recognized victims are under age 40.
Apartment complexes in Seoul are seen from Namsan on Oct. 5. Apartments accounted for 13.3 percent of the homes involved in recognizedjeonse (lump-sum deposit) fraud cases.NEWS1
Another 623 people were recognized as victims of jeonse (lump-sum deposit) fraud in September, bringing the total to 41,559, three-quarters of whom are under 40.
The government’s jeonse fraud victim support committee reviewed 1,642 cases at three plenary meetings in September and recognized 623 of them, the Ministry of Land, Infrastructure and Transport said Monday. Of those, 579 were new applications or reapplications, and 44 were cases in which applicants objected to an earlier decision and won on a second review.
Another 583 applications were rejected for failing to meet the requirements for victim status. A further 208 were excluded from the Special Act on Support for Victims of Jeonse Fraud and Housing Stability because they can recover their full deposits through guarantee insurance or the priority repayment owed on small deposits. Objections in 228 cases were dismissed.
Since the special act to support victims of jeonse fraudtook effect in June 2023, the committee has handled 71,058 cases and recognized 58.5 percent of them.
People in their 30s made up 50.7 percent of recognized victims, followed by those in their 20s at 25.2 percent. In 97.7 percent of cases, the deposit was 300 million won ($224,131) or less.
Multiplex houses, low-rise buildings with separately owned units, accounted for 28.3 percent of the homes involved. Officetels, studio units that combine living and office space, followed at 21 percent, then multifamily houses, which have a single owner, at 18.8 percent and apartments at 13.3 percent.
By region, 60.7 percent of the cases were in the greater Seoul area, with 12,021 in Seoul, 9,317 in Gyeonggi and 3,877 in Incheon.
The state-run Korea Land and Housing Corporation (LH) had bought 11,148 of the affected homes as of the end of September, including 6,157 from January to September, an average of 684 a month.
Apartment complexes in Seoul are seen from Namsan on Oct. 5. Apartments accounted for 13.3 percent of the homes involved in recognized jeonse fraud cases.NEWS1
To speed up purchases, the ministry and LH run purchase review meetings and a fast-track process and plan to keep consulting district courts so that auctions of the homes continue to move forward.
The government has provided victims with 80,188 forms of support in total, covering housing, financing and legal procedures.
Tenants affected by jeonse fraud can apply for victim status with the city or provincial government where they live. Those recognized can get guidance on support at jeonse fraud support and prevention centers nationwide and at branches of the Korea Housing & Urban Guarantee Corporation (HUG).
The ministry and HUG also run a safe-contract consulting service at the centers, which lets prospective tenants check a property’s ownership rights and contract risks before signing.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
