LH Buys Jeonse Fraud Houses... Up to 35,000 Units

The government will purchase homes affected by jeonse fraud using the Korea Land and Housing Corporation (LH)'s purchase rental housing system. Initially, the government expressed a negative stance on the public purchase of affected homes, but it is understood that they have changed their position to actively intervene as jeonse fraud damage has spread nationwide recently.

[Image source=Yonhap News]

On the 21st, Won Hee-ryong, Minister of Land, Infrastructure and Transport, held an emergency meeting at the LH Seoul Regional Headquarters and announced plans to purchase homes affected by jeonse fraud. Minister Won said, "Since the jeonse damage is urgent and extremely desperate, we will expand the application of the LH purchase rental system, which already has the budget and business system in place, to designate properties affected by jeonse fraud as the top priority for purchase," adding, "We intend to propose this at the pan-government meeting."

LH purchase rental housing is a project where existing homes are bought, renovated, and rented out at prices lower than market rates to homeless youth, newlyweds, and vulnerable groups.

According to the government, the planned volume of LH purchase rental housing for this year is 26,000 units, with a budget of 5.5 trillion won. This means that the government intends to utilize this as much as possible to purchase homes affected by jeonse fraud. Including 9,000 units of purchase rental housing from local governments and local public corporations, a total of 35,000 units can be purchased. The average price per unit of purchase rental housing is about 200 million won.

To enable LH to purchase homes affected by jeonse fraud and use them as rental housing, legal amendments are necessary. In this regard, the government and the ruling party plan to hold a high-level party-government consultation on the 23rd to discuss the issue of purchasing homes affected by jeonse fraud.

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