Priority Repayment Fund 20-Year Interest-Free Loan... 'Jeonse Fraud Special Act' Passes Land, Infrastructure and Transport Committee Subcommittee

Deposit increased from 450 million to 500 million KRW
Interest-free loans for priority repayment beneficiaries
Expanded auction agency service up to 70%

The ruling and opposition parties have agreed to expand the application scope of the special law on Jeonse fraud to include deposits up to 500 million won. Victims who do not receive the priority repayment amount will also be included in the special law with a plan to provide interest-free loans for up to 20 years.

The National Assembly Land, Infrastructure and Transport Committee held a subcommittee meeting on the 22nd and passed a bill to support victims of Jeonse fraud through a special law. This final alternative was prepared after five meetings discussing three previously proposed special laws related to Jeonse fraud and the government's revised proposal.

The special law divides Jeonse fraud victims into those hoping to purchase a home and those wishing to continue residing, providing support accordingly. The eligibility criteria have been expanded from deposits of 450 million won or less to deposits of 500 million won or less.

[Image source=Yonhap News]

The Housing and Urban Guarantee Corporation (HUG)'s 'One-stop Auction and Public Sale Agency Service,' which acts on behalf of Jeonse fraud victims in auctions and public sales, is also included in the special law. The government will cover 70% of the auction and public sale costs. Additionally, the special law includes provisions such as ▲ granting priority purchase rights to Jeonse fraud victims ▲ utilizing LH public rental housing.

Regarding the contentious issue of recovering Jeonse fraud deposits until the last moment, the government included a provision to provide victims with interest-free loans for up to 10 years based on the current priority repayment amount. The priority repayment amount refers to the sum that tenants can receive ahead of senior creditors such as banks when the house they lived in is transferred through auction or public sale.

After the meeting, Kim Jeong-jae, a member of the People Power Party, told reporters, "Since there is a possibility of unconstitutionality by infringing on others' property rights, it was decided to provide interest-free long-term loans to ensure support commensurate with that in future discussions," adding, "If delinquency information is deferred, Jeonse loans or mortgage loans will also become possible."

The ruling and opposition parties plan to pass the special law at the full Land, Infrastructure and Transport Committee meeting on the 24th, then proceed through the Judiciary Committee held the same day, and finally handle it at the plenary session on the 25th.

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