FSS to Promote Auction and Sale Postponement for Housing Victims of Jeonse Fraud

On the 19th, the Financial Supervisory Service (FSS) announced that it will promote voluntary auction and sale suspension measures (for more than six months) for the residences of victims of Jeonse fraud.

This is a follow-up measure after the discussion of practical measures with the banking sector related to Jeonse fraud victims announced the previous day.

The FSS will obtain the addresses of Jeonse fraud victim residences from the Ministry of Land, Infrastructure and Transport and send them to financial institutions handling mortgage loans, such as banks and mutual finance institutions. Financial institutions that have accepted the Jeonse fraud victim residences as collateral will check whether the loan’s term benefits have been lost, whether an auction has been initiated, and the progress of such auctions. If the victim wishes, the institutions will defer the start of auction procedures or, if the auction is already underway, will promote the postponement of the sale.

For Saemaeul Geumgo, which is not under the supervision of the FSS, cooperation will be requested from the Ministry of the Interior and Safety, the relevant authority. If a financial institution has already sold the claim to a third party (such as an NPL purchasing institution), the selling financial institution will request cooperation from the purchasing institution to suspend the auction.

The FSS added, "To ensure that financial institutions’ voluntary auction and sale suspension measures are carried out quickly and smoothly, we plan to issue non-action opinions to each financial sector within the day."

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