National Assembly's Delayed Measures on Jeonse Fraud... From Right of First Refusal to Special Act

Death of Jeonse Victim Prompts Emphasis on Measures
Ruling Party to Hold Party-Government Meeting to Discuss Policies
Opposition to Push Special Act on Empty Jeonse and Prior Support for Subrogation Rights

As the third extreme case of suicide due to jeonse fraud victims occurred, the National Assembly belatedly began to prepare countermeasures. Both ruling and opposition parties are pouring out measures such as task forces (TF) and special laws to avoid criticism of being 'too little, too late.'

According to political circles on the 19th, the People Power Party decided to form an internal TF to assist victims of jeonse fraud. Park Dae-chul, the chairman of the Policy Committee, wrote on Facebook that day, "The TF will focus on alternatives requested by victims, including suspending auctions, issues of preemptive purchase rights, and selective relief measures, and the ruling party and government will coordinate to find the most effective and feasible solutions from the victims' perspective among the various proposals raised."

The People Power Party plans to hold a party-government council on the 20th, receive a report on jeonse fraud from the Ministry of Land, Infrastructure and Transport, and continue policy discussions. It was reported that Land Minister Won Hee-ryong will not attend that day. At the full meeting of the National Assembly Land, Infrastructure and Transport Committee held on the same day, lawmakers are also expected to question the Ministry of Land regarding related issues. Simultaneously with the launch of the TF, the ruling party said it would support the passage of bills related to jeonse fraud countermeasures previously proposed by the government.

[Image source=Yonhap News]

The opposition Democratic Party leadership also focused its efforts on the jeonse fraud issue that day. Lee Jae-myung, leader of the Democratic Party, said at the party's Supreme Council meeting in the morning, "Jeonse fraud is a 'social disaster' that causes irreparable damage to many citizens," and "We must prepare drastic and practical measures for victim relief." He added, "The government's 'temporary suspension of auctions' measure announced yesterday is necessary," and "In addition, 'advance support with subsequent recourse claims' and a 'special law for victim relief' should be promptly pursued." Supreme Council members Park Chan-dae and Kim Sung-joo, chief deputy chair of the Policy Committee, also emphasized the need for countermeasures.

Earlier, the Democratic Party proposed the 'Three Jeonse Fraud Prevention Laws' last month, including amendments to the Licensed Real Estate Agents Act, Real Estate Registration Act, and the Housing Lease Protection Act. On the 17th, the Democratic Party's Committee for Protecting the People held a press conference at the National Assembly urging the enactment of a 'Special Act for the Relief of Victims of Empty Jeonse and Jeonse Fraud.'

The Democratic Party Policy Committee will hold a press briefing that afternoon to announce countermeasures against jeonse fraud. The Policy Committee plans to establish a 'pan-governmental task force for jeonse fraud prevention and relief' and legislate measures such as mandatory subscription to jeonse deposit insurance, unconditional low-interest loans for victims, and advance support with subsequent recourse claims.

[Image source=Yonhap News]

Legislative momentum is also expected to accelerate. Currently, numerous bills aimed at preventing jeonse fraud have been proposed in the National Assembly.

These include amendments to the Special Act on Private Rental Housing, which only allows rental business registration if the registered rental business subscribes to housing deposit insurance, three amendments to the Licensed Real Estate Agents Act, and amendments to the Appraisal Act and the Appraisers Act to strengthen sanctions against appraisers involved in jeonse fraud. Two bills related to the Special Act on Private Rental Housing and the Licensed Real Estate Agents Act have not yet been submitted to the relevant standing committees, and the Licensed Real Estate Agents Act bill mandating landlord information disclosure is under discussion in the Land Committee's bill subcommittee. The Appraisers Act amendment passed the Land Committee on February 24.

A bill concerning 'deposit returns,' which victims can directly feel, has also been proposed. Jang Je-won, a People Power Party lawmaker and chairman of the National Assembly's Public Administration and Security Committee, introduced the 'Local Tax Basic Act Amendment' bill as the main sponsor yesterday. This bill stipulates that when a jeonse house is auctioned or publicly sold, the tenant's deposit is repaid before local taxes such as property tax, which have a statutory due date after the tenant's confirmed date. Forty-eight ruling party lawmakers joined in sponsoring this bill.

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