Immediate 'Auction Suspension' from Tomorrow for Jeonse Fraud Victim Houses in Michuhol-gu (Comprehensive)

Auction of rental deposit fraud victim houses in Michuhol-gu, Incheon will be immediately suspended starting from the 20th.

The government-wide task force (TF) for supporting victims of rental deposit fraud held its first meeting on the afternoon of the 19th to discuss the details of the auction suspension measures. The government has identified a total of 2,479 rental deposit fraud victim households in Michuhol-gu.

Victims of jeonse fraud have reportedly surged at an apartment in Michuhol-gu, Incheon City.
[Image source=Yonhap News]

As a result of a full survey of the victim houses, it was found that all claims are held by financial institutions. Among these, cooperation will be sought to immediately suspend auctions starting from the 20th for cases where claims are held by banks and mutual finance institutions. To this end, the Financial Services Commission sent cooperation letters to financial institutions, and the Financial Supervisory Service issued non-action opinions. A non-action opinion is issued by financial authorities when they determine that the business a financial company intends to conduct does not violate financial laws or regulations.

For cases where non-performing loans (NPL) have been sold to private debt management companies, cooperation will be sought to suspend auction procedures as much as possible and to monitor the situation. If cooperation is not achieved, additional measures will be considered.

On the same day, Land, Infrastructure and Transport Minister Won Hee-ryong said at a press briefing, "There are concerns that some financial institutions may not suspend auctions depending on their type, but I believe all will be able to suspend." Minister Won emphasized that the auction is not being permanently stopped, explaining, "This is to secure as much time as possible to prepare substantial support measures for victims and to have various ministries discuss the matter."

He added, "If the creditor is an individual, restricting the exercise of rights would be illegal, but in the case of financial institutions, the current issue is mainly about the loss of benefit of the term."

The government plans to continue discussions on detailed plans such as the suspension period and procedures. Apart from the suspension lasting at least four months, the exact duration has not yet been determined.

The government-wide TF, formed under the direction of President Yoon Suk-yeol, is chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho. Related ministries including the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of Justice, Ministry of the Interior and Safety, Ministry of Health and Welfare, and the Financial Supervisory Service are participating extensively. Minister Won stated, "The TF will be fully operational until we overcome this critical phase and reach a conclusion on victim relief measures," adding, "We will also proceed at full speed on parts that require discussion in the National Assembly."

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