Ruling Party and Government to Promote Special Act Including Priority Purchase Rights for Jeonse Fraud Victims (Update)

Priority purchase rights granted and tax reductions for successful bids on rental housing
LH to purchase and convert to public rental if leasing is desired

The People Power Party and the government have decided to prioritize granting purchase rights and providing loans upon the auction of leased housing as key measures to support victims of jeonse fraud, and to promote the enactment of a special law.

On the 23rd, Park Dae-chul, Chairman of the Policy Committee of the People Power Party, Won Hee-ryong, Minister of Land, Infrastructure and Transport, Han Dong-hoon, Minister of Justice, and Kim Ju-hyun, Chairman of the Financial Services Commission, held a press conference at the National Assembly. Chairman Park stated, "The People Power Party and the government have agreed today through party-government consultations to promote the enactment of a special law to support victims of jeonse fraud and ensure housing stability," adding, "This law will be a temporary law aimed at recovering from disaster-level damages caused by the previous administration’s housing policy failures," and "We will prepare government-wide support measures to alleviate the difficulties faced by those who have suffered from jeonse fraud due to the disastrous surge in housing prices, and include these measures in the special law."

Earlier, the People Power Party, the government, and the Presidential Office held a meeting at 2 p.m. at the Prime Minister’s official residence in Samcheong-dong, Seoul, to discuss countermeasures against jeonse fraud.

Chairman Park explained, "Through the special law, we will guarantee the housing rights of affected tenants," and added, "We will grant priority purchase rights to those who wish to acquire the leased housing they currently reside in, enabling them to own their homes." He continued, "When acquiring leased housing at auction, related taxes will be reduced, and loans will be provided to cover any shortfall in purchasing power."

He further stated, "For those who wish to continue living as tenants, public institutions such as the Korea Land and Housing Corporation (LH) will exercise priority purchase rights on their behalf, purchase the relevant housing, and provide it as public rental housing," adding, "This will allow victims to live for a long time at affordable rates without worrying about eviction."

Additionally, separate measures to eradicate jeonse fraud will also be pursued. Chairman Park said, "Along with the enactment of the special law, we will intensify efforts to root out jeonse fraud," and added, "We will swiftly and strictly investigate not only landlords but also their accomplices, and promote amendments to the Act on the Aggravated Punishment of Specific Economic Crimes to impose heavier penalties on large-scale property crimes targeting many ordinary citizens, including jeonse fraud."

Minister Hee-ryong of the Ministry of Land, Infrastructure and Transport visited the "Visiting Jeonse Damage Support Counseling Bus" located at Juan Station in Michuhol-gu, Incheon, on the afternoon of the 21st, and explained measures to address Jeonse fraud damage.
[Image source=Yonhap News]

Chairman Park stated, "The public purchase proposed by the opposition party is a method where the state directly supports the victims’ deposits with taxpayers’ money," and added, "It is essentially a deposit national payment law, which involves enormous public funds and ultimately shifts the burden onto all citizens; it is populism and an irresponsible idea." He explained, "The opposition’s approach is taxpayer-funded compensation for damages, whereas the party-government’s support method guarantees housing for affected tenants," and concluded, "The party and government will do their best to enable victims to return to a stable daily life as soon as possible through responsible and feasible support measures."

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