The "Special Act on Jeonse Fraud" Aimed at Protecting People... Why the Bill Review Is Completely Stalled

Ruling and Opposition Parties Urgently Call for Disaster Relief
Disagreements Persist Over Scope and Methods
April Processing Fails, May Negotiations in Focus

As victims of jeonse fraud continue to resort to extreme measures, highlighting the severity of the issue as a serious social problem, the government and the National Assembly have begun drafting a special law to protect victims. However, disagreements between the ruling and opposition parties have surfaced over every contentious point, from the definition of jeonse fraud to the direction of response, causing difficulties in the process.

'April Plenary Session Processing' Fails, Ruling and Opposition Parties Grow Impatient

[Image source=Yonhap News]

According to a National Assembly Land, Infrastructure and Transport Committee official on the 4th, the schedule for the next subcommittee meeting to discuss the special law has not been finalized. Although both parties are unusually rushing the review of related laws, sharp differences in positions were confirmed in two subcommittee meetings. Discussions on the special law have now been escalated to the floor leadership level.

The official explained, "Now the floor leaders of both parties are negotiating (schedules, disagreements, etc.)," adding, "The new floor leader (Park Kwang-on of the Democratic Party) and the other side (People Power Party) are discussing the National Assembly plenary session schedule and other matters, and if a broad agreement on jeonse fraud can be reached, we expect an agreement over the weekend. Once discussions conclude, we (the Land Committee) are ready to convene the subcommittee at any time." This indicates that a political decision is awaited.

Earlier, last month, both ruling and opposition parties and the government promised to promptly prepare the special law. On the 21st of last month, the policy chiefs of the People Power Party, Democratic Party, and Justice Party met and each party pledged to pass the bill at the plenary session on the 27th. However, the deadline was postponed due to the delayed submission of the government proposal and unresolved disagreements in the Land Committee.

Both parties still agree on the need for "prompt processing." With the general election just over a year away and daily revelations of jeonse fraud cases, there is a pressing need for resolution.

Reasons the Gap Remains Unnarrowed

The difficulty in negotiating the special law stems from differences in the countermeasures proposed by each party. The biggest issue is the scope of application. The government's special law criteria announced on the 27th of last month include six conditions: ▲tenants with opposable rights and confirmed dates ▲progress of auction or public sale on leased housing ▲consideration of area and deposit for low-income tenant housing ▲cases judged to have intent of jeonse fraud such as investigation initiation ▲occurrence of multiple victims ▲and cases where a significant portion of the deposit is at risk of non-return.

In the revised proposal presented on the 1st, the deposit threshold was adjusted from the previous 300 million KRW to a maximum of 450 million KRW. The criterion of "intent of jeonse fraud" was specified as deception by the landlord or the landlord being unable to return the deposit. The condition regarding "risk of non-return of a significant portion of the deposit" was removed from the eligibility criteria.

However, the opposition party rejected the revised proposal, arguing that the scope is too narrow and does not cover all victim cases.

Another contentious point is the method of victim support. The government proposal includes provisions such as ▲granting priority purchase rights ▲apportionment of tax claims ▲support for successful bid funds ▲postponement or suspension of auction or public sale ▲exemption from acquisition tax and reduction of property tax if the victim wishes to purchase the property. If the victim does not wish to purchase but only to reside, the government and ruling party proposal includes the public sector purchasing the property and providing it as rental housing.

However, the opposition insists on the principle that the public sector must purchase the jeonse deposit return claims. The Democratic Party and Justice Party's special laws include measures to allow victims to recover at least part of their jeonse deposits, though details differ. On the other hand, the government and ruling party oppose allowing the state to directly purchase individuals' deposits or claims. On the 3rd, Democratic Party lawmaker Heo Jong-sik told reporters during the subcommittee meeting, "The government firmly holds the principle that purchasing deposits and claims that have already been lost is not allowed, so that part is not accepted," adding, "Instead, the government plans to compensate by suspending auctions and public sales and granting priority purchase rights." He introduced the negotiation status.

Various other detailed measures are also under discussion, making negotiations even more challenging. The Justice Party reportedly proposed on the 3rd a special exception to the current 'small deposit priority repayment system' during the subcommittee meeting.

Need to Enact 'Thoroughly' Rather Than 'Quickly'

[Image source=Yonhap News]

While the political sphere emphasizes speed, victims are asking for more thorough measures. The National Countermeasures Committee for Jeonse Fraud and Empty Jeonse Victims criticized the government proposal on the 2nd, saying, "This is not a bill to support victims but a bill to filter out victims," and urged, "The government should conduct a full survey to categorize victim types and derive support measures before creating the special law."

Kim Jeong-jae, the ruling party secretary of the Land Committee from the People Power Party, said after the subcommittee meeting on the 3rd, "There are many complex and intertwined issues, but everyone agrees on the principle of how to properly provide support," adding, "We decided to continue the review." Democratic Party lawmaker Maeng Seong-gyu also promised, "We will continue discussions to provide broad and deep support to victims," and "We will keep discussing with the secretaries and hold further meetings."

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