Eradicating 'Jeonse Fraud'... HUG Establishes Emergency Response Plan

Suspected Jeonse Fraudsters and Malicious Debtors Subject to Criminal Action
Multi-Home Debtors Designated as Intensive Management Targets
Active Support for Disclosure of High-Value and Habitual Debtors List

A real estate agency in a quiet apartment complex in Seoul. Photo by Hyunmin Kim kimhyun81@

The Korea Housing & Urban Guarantee Corporation (HUG) announced on the 4th that it has established an 'Emergency Response Plan for Jeonse Fraud' to prevent jeonse scams.

HUG has developed preemptive and reactive measures to prevent increasing tenant damages and HUG's losses amid the recent surge in various types of jeonse fraud.

First, HUG plans to set up a Jeonse Fraud Prevention Center to provide tenants with advance information on preventing jeonse fraud and to strengthen cooperation with related organizations for fraud prevention.

The Jeonse Fraud Prevention Center will offer information on types of jeonse fraud, procedures for subscribing to the Jeonse Deposit Return Guarantee, and methods for verifying housing prices and real estate registry documents, targeting young adults starting their careers, newlyweds, and others to support safe jeonse contracts.

In cooperation with other guarantee institutions, HUG will share cases of jeonse fraud and overlapping guarantees, and work with related agencies to detect suspicious cases early through resident registration number verification to prevent jeonse fraud.

HUG will promptly take criminal action against malicious debtors and make every effort to block market disruption caused by jeonse fraud.

HUG has established a Criminal Advisory Committee within the organization to vigorously pursue criminal measures against suspected jeonse fraudsters and will immediately initiate additional complaints and prosecutions against malicious debtors under investigation.

Multi-homeowner debtors will be designated as subjects of focused management, and for real estate agents, builders, tenants, and appraisal agencies suspected of colluding in fraud with malicious multi-homeowner debtors, HUG will investigate the possibility of fraud collusion and expand complaints, prosecutions, and requests for travel bans.

For malicious multi-homeowner debtors, HUG will expand court-ordered forced management of houses to prevent unauthorized short-term rentals of houses under auction and block unfair profits from monthly rent collection.

According to the Special Act on Litigation Promotion, effective January 21 next year, HUG will swiftly recover debts from multi-homeowner debtors through payment orders by public notice delivery and actively support the disclosure of lists of high-value and habitual debtors.

Kwon Hyung-taek, President of HUG, emphasized, "We have established tailored measures to respond to evolving jeonse fraud methods," adding, "HUG will improve systems so that jeonse fraud cannot take root and will do its utmost to ensure that no ordinary citizen sheds tears due to jeonse fraud through active criminal actions against suspected fraudsters."

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