Kim Dong-yeon "Government Proposes Step-by-Step System Improvements for Jeonse Damage Prevention, Support, and Punishment"

Gyeonggi Province Governor Kim Dong-yeon is holding a press conference on support policies for jeonse damage at the Gyeonggi Provincial Government Office on the 11th.

Gyeonggi Province is promoting measures to protect tenants' rights from increasing jeonse (long-term lease) damages and to provide effective customized support for victims of jeonse fraud.

First, Gyeonggi Province will propose to the government improvements at each stage of prevention, support, and punishment of jeonse damages, including mandatory subscription to deposit return guarantee insurance and expanding the support targets under the Special Act on Jeonse Damage Support. Additionally, it has prepared its own support measures such as emergency living expense assistance for victims of jeonse damages.

On the 11th, Governor Kim Dong-yeon held a press conference at the Gyeonggi Provincial Government Office and strongly urged the government and the National Assembly to take fundamental measures for relief and prevention of jeonse damages through the "Gyeonggi Province Position Statement on the Special Act on Jeonse Fraud Damage Support," which contains these details.

Governor Kim said, "Damage caused by jeonse fraud and 'empty jeonse' is increasing, and depending on the real estate market, the damage may spread further, becoming a social problem. However, government measures have strict conditions, making support for victims insufficient and prevention inadequate. Discussions in the National Assembly are also sluggish. Gyeonggi Province urges the government and the National Assembly to implement three policies to realize victim support and four policies for fundamental prevention of jeonse damages."

Governor Kim first urged, "To protect tenants' jeonse deposits, revise the 'Housing Lease Protection Act' to make it mandatory for tenants to subscribe to deposit return guarantee insurance, which is currently optional."

He also pointed out, "Jeonse fraud occurs by exploiting the fact that the lease contract takes effect from the day after the tenant's move-in registration. We propose revising related laws so that the contract takes effect from the day of move-in registration and establishing a linked system between community service centers and registries."

Furthermore, he insisted, "To prevent jeonse damages caused by gap investments and others, the 'Special Act on Private Rental Housing' should be amended to mandate registration as a housing rental business operator for landlords owning five or more houses."

Governor Kim emphasized, "Currently, the government's criteria for recognizing victims of jeonse fraud are strict, which may cause tenants to suffer losses such as deposit loss and disqualification as non-homeowners because they are not recognized as victims. Therefore, the scope of victim support under the special law should be expanded to broadly recognize victims excluded from government measures."

In addition, he said, "The Enforcement Decree of the 'Housing Lease Protection Act' should be amended to activate loans for landlords to return tenant deposits and abolish the regulation on the upper limit of priority repayment deposits." He added, "The priority repayment amount refers to the right of small-amount tenants to receive repayment ahead of senior rights holders when the landlord goes bankrupt and the house is auctioned off without returning the deposit."

Governor Kim also proposed institutional improvements to the government to strengthen punishment for illegal acts by licensed real estate agents.

He said, "The 'Licensed Real Estate Agents Act' should be amended to confiscate and recover economic benefits obtained illegally when agents receive fees beyond commissions and expenses or transfer or lend their licenses illegally." He promised, "Gyeonggi Province will continue special crackdowns on suspicious real estate agencies involved in jeonse fraud in cooperation with the Ministry of Land, Infrastructure and Transport and local government agencies to eradicate illegal brokerage activities."

Meanwhile, as part of the jeonse fraud support measures, Gyeonggi Province will support the establishment of cooperatives composed of victims as members. These cooperatives will play a self-help role by acquiring houses through members' investments. Depending on operations, early recovery of deposit damages is possible, and at the same time, victims' non-homeowner status is maintained, preventing obstacles to subscription for housing. Gyeonggi Province plans to actively support cooperatives within feasible limits.

Additionally, Gyeonggi Housing and Urban Corporation (GH) will provide emergency support housing using vacant public rental houses and support moving expenses (up to 1.5 million KRW) for residents of emergency support housing. Furthermore, through ordinance amendments, 1 million KRW in emergency living expenses will be provided to victims suffering financial losses and hardship.

Governor Kim explained the background of the press conference, saying, "Although various measures have been created, there are significant limitations at the local government level. Since the government and the National Assembly are discussing measures, Gyeonggi Province has urged fundamental solutions."

Currently, Gyeonggi Province operates the "Jeonse Damage Support Center" within the Gyeonggi Housing Welfare Center to provide comprehensive counseling on legal, financial, and housing support for tenants who have suffered jeonse damages in the province. For inquiries related to jeonse damages, contact the Jeonse Damage Support Center at 070-7720-4871~2.

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