Won Hee-ryong, "Considering Purchase of Houses Victimized by Jeonse Fraud through LH"

The government has begun reviewing a plan to purchase houses affected by jeonse fraud through Korea Land and Housing Corporation (LH) and utilize them as rental housing.

According to the Ministry of Land, Infrastructure and Transport on the 21st, Minister Won Hee-ryong held an emergency meeting with LH at the LH Seoul Regional Headquarters in the afternoon to discuss expanding LH's rental housing for victims of jeonse fraud.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is delivering a greeting at the emergency task force (TF) meeting for supporting victims of the Jeonse fraud case held on the 21st at the large conference room of the Korean Bar Association building in Seocho-gu, Seoul.
[Photo by Ministry of Land, Infrastructure and Transport]

Before the discussion with LH, Minister Won held an emergency countermeasure meeting to support victims of jeonse fraud at the Korean Bar Association on the same day, stating, "We will prioritize applying LH's rental housing purchase system to properties affected by fraud, going beyond practical housing and financial support."

However, he reiterated the refusal to accept the 'support first, claim later' plan, in which asset management institutions such as Korea Asset Management Corporation (KAMCO) pay the tenant deposit on behalf of the victims of jeonse fraud and then acquire the claims.

When asset management institutions purchase claims from affected tenants, they do not guarantee the full value of the claims. For example, if a victim of jeonse fraud holds a claim for the return of a 100 million won jeonse deposit, the price at which KAMCO purchases it is much lower.

Minister Won said, "The return of the deposit inevitably goes to senior creditors, and we will actively consider responsible and realistic measures regarding this matter."

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