South Korea recognized 623 additional tenants as jeonse fraud victims in September, while the Korea Land & Housing Corporation (LH) continued buying up affected properties, bringing its cumulative purchases to 11,148 units as of the end of last month. Jeonse is a Korean lease system requiring a large lump-sum deposit instead of monthly rent.
The Ministry of Land, Infrastructure and Transport (MOLIT) said on the 12th that its jeonse fraud victim support committee held three plenary meetings last month and reviewed 1,642 cases, ultimately designating 623 as jeonse fraud victims. Of the 623 newly recognized cases, 579 were new or repeat applications. The remaining 44 were appeals against earlier decisions that were found to meet the eligibility requirements upon reconsideration.
Among the cases reviewed, 583 were rejected for failing to meet the eligibility requirements. Another 208 cases were excluded because the tenants could recover their full deposits through guarantee insurance or priority repayment claims. Of the appeals, 228 were dismissed for not meeting the requirements.
Since the jeonse fraud victim support law took effect on June 1, 2023, a cumulative 41,559 cases have been recognized. The committee has issued 1,251 decisions requesting cooperation to suspend urgent auction or public sale procedures. Housing, financial and legal support provided to victims totals 80,188 cases.
Purchases of affected homes are also picking up pace. LH had acquired 11,148 jeonse fraud-affected homes as of the 30th of last month. It bought 6,157 homes from January through September this year, an average of 684 per month. That marks a sharp increase from 2024, when purchases totaled just 90 homes for the entire year. MOLIT and LH plan to continue running inspection meetings and expedited processing procedures for acquisitions, as well as talks with district courts to speed up auction proceedings.
Tenants who were not recognized as victims or who were designated under certain limited categories may file appeals under the relevant law. Even if an appeal is dismissed, they may reapply if their circumstances change.
MOLIT and the Korea Housing & Urban Guaranty Corporation (HUG) also offer pre-contract counseling to prevent jeonse fraud. Eight jeonse damage and prevention support centers nationwide — in Seoul, Busan, Daegu, Incheon, Gwangju, Daejeon, Gyeonggi and Jeonnam — advise prospective tenants on analyzing property registration and other legal claims, reviewing lease contract wording and points to watch when signing.