HUG, First Forced Management of 121 Units in Buildings Owned by 'Malicious Landlords' Who Defaulted on Jeonse Deposits

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The Korea Housing & Urban Guarantee Corporation (HUG) announced on the 8th that it has applied for compulsory management for the first time on houses owned by "malicious landlords" who caused Jeonse deposit refund guarantee accidents, and the court has decided to commence the process.

Malicious landlords refer to multi-home debtors who have caused HUG to make repayments on behalf of tenants for three or more cases of Jeonse deposit refunds, indicating a lack of willingness to repay.

Compulsory management is a method of compulsory execution under the Civil Execution Act, where a manager appointed by the court manages the debtor's real estate and uses the income generated from the property to cover repayments. This time, HUG will conduct compulsory management for the first time on 121 housing units owned by malicious landlords.

The reason HUG proceeded with compulsory management through the court is that the malicious landlords caused harm to numerous low-income tenants and incurred guarantee losses to HUG. It was also found that these landlords unjustly collected monthly rent by short-term leasing the houses even while auctions were underway.

The income obtained through the compulsory management of the houses will belong to HUG and the affected tenants. This allows HUG to recover its claims and reduce the damage to tenants.

Starting with this commencement decision, HUG plans to actively apply for compulsory management on real estate owned by other malicious landlords in the future.

Kwon Hyung-taek, President of HUG, said, "We will strengthen management of malicious landlords who harm low-income people and cause losses to the corporation, fulfilling our role as a public guarantee institution to foster a healthy Jeonse market."

This content was produced with the assistance of AI translation services.