Won Hee-ryong "Concerns Over Stigmatization if Risk Areas for Empty Can Jeonse Are Specifically Identified and Disclosed" [Jeonse Fraud Measures]

Minister of Land, Infrastructure and Transport's Key Q&A on Jeonse Fraud Measures
"Immediate Effect of Moving-in Report, Immediate Implementation Difficult"

Won Hee-ryong, Minister of Land, Infrastructure and Transport

There was a suggestion that the tenant's opposability should take effect immediately after the move-in registration to prevent jeonse fraud, but this was omitted from the current measures. This is due to the need for legal and institutional system improvements. Additionally, the plan to publicly disclose 'risk areas for empty jeonse' was also excluded, out of concern that the stigma effect could excessively stagnate transactions and cause harm to well-intentioned landlords.

The following are key Q&A sessions with Won Hee-ryong, Minister of Land, Infrastructure and Transport, and officials following the announcement of the jeonse fraud prevention measures.

- There was a proposal to disclose detailed 'risk areas for empty jeonse.' Why was this not included in the current measures?

▶ If the Ministry of Land marks specific areas and provides information, there is concern about a stigma effect. Transactions in those areas could freeze, and landlords with legitimate properties might suffer damage.

Instead, the government will transparently disclose data nationwide by city, county, and district levels, and by town and neighborhood units in the metropolitan area on a monthly basis. This is not about withholding information but enabling tenants, local governments, and licensed real estate agents to utilize the data according to their respective needs.

-- There have been many fraud cases exploiting the fact that the tenant's opposability arises from '0:00 the day after' the move-in registration. Why was this not reflected?

▶ In reality, even if a tenant completes move-in registration and obtains a confirmed date, the legal effect starts from 0:00 the next day. The Ministry of Land proposed a measure to have opposability take effect immediately upon move-in registration to fundamentally prevent damage, but after intergovernmental discussions, it was concluded that immediate implementation is difficult.

The Ministry of Justice, courts, and financial authorities expressed opinions that comprehensive consultations and adjustments are needed regarding administrative procedures, civil law rights relations, and IT systems. It is difficult to specify the timing of rights under administrative public notice principles, and there is concern that financial institutions might reduce lending as a defensive measure, causing side effects. For now, measures feasible immediately to protect tenants will be prepared, and a system will be developed in the long term.

-- When a landlord-favored market arises in the future, will landlords willingly disclose arrears? Is mandatory disclosure effective?

▶ Disclosure of landlord-related information can fundamentally help reduce disputes. If a landlord provides related information, it can signal that the property is not involved in jeonse fraud. It also has legal significance. In jeonse fraud cases, proving the perpetrator's intent is often difficult.

However, if information provision is mandated, it becomes easier to prove intent if the landlord later avoids providing information. Also, including special clauses in contracts is beneficial to tenants under civil law. For damages, one party's illegal act must be recognized, and if tenant-favorable clauses are mandatorily inserted in the standard contract, it becomes easier to meet the illegal act requirements.

-- You are promoting an increase in the priority repayment amount. To what extent will it be raised?

▶ This is not something the Ministry of Land can decide alone, so it is difficult to specify a uniform amount.

-- Does mandatory disclosure of landlords' arrears conflict with the Personal Information Protection Act?

▶ This measure was developed through intergovernmental discussions. We will thoroughly review related matters during the legislative process to ensure smooth implementation.

-- Where will the jeonse fraud victim support center be established?

▶ Initially, one center will be established in Seoul. Since the number of contracts and incidents is overwhelmingly high there, it is planned to be set up by mid-September as a priority. Later, it will be expanded to a total of three centers in the Gyeonggi and Chungcheong regions. Depending on activity results and the scale of victim consultations, expansion nationwide will be considered.

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