Special Lease Fraud Act Passed in Plenary Session... Opposition Party Says "We Will Fill Gaps Through Follow-up Legislation"

The Special Act on Jeonse Fraud (Special Act on Support for Jeonse Fraud Victims and Housing Stability) passed the National Assembly plenary session on the 25th.

On that day, the National Assembly held a plenary session and approved the Special Act on Jeonse Fraud with 243 votes in favor, 5 against, and 24 abstentions out of 272 members present.

The core content of the Special Act on Jeonse Fraud is that if recognized as a victim of jeonse fraud, the resident is granted a priority purchase right when the occupied house goes to auction, and if the house is successfully bid at auction, financial support can be provided. If the victim does not wish to purchase the house, the Korea Land and Housing Corporation (LH) can receive the priority purchase right and utilize public rental housing. In addition, after discussions between the ruling and opposition parties, the amendment also includes expanding financial support for jeonse fraud victims and the government providing auction and public sale agency services.

[Image source=Yonhap News]

After marathon discussions since the end of last month, the ruling and opposition parties agreed to include in the Special Act a plan to provide interest-free loans for 10 years up to the amount of the highest priority repayment to jeonse fraud victims, and low-interest loans up to 240 million KRW for the excess amount, without including the opposition party’s demand for ‘purchase of deposit claims.’ The Special Act also stipulates that the Housing and Urban Guarantee Corporation (HUG) will support a ‘one-stop auction and public sale agency service’ for jeonse fraud victims. There was also controversy regarding the definition of jeonse fraud victims, but the enacted Special Act sets the maximum deposit range at 500 million KRW, imposes no restrictions on housing area criteria, and includes victims of ‘gap speculation without capital’ causing empty jeonse contracts, as well as neighborhood living facilities, as eligible for support.

Yoon Jae-ok, floor leader of the People Power Party, emphasized the significance of the Special Act on Jeonse Fraud being processed through bipartisan agreement. At the People Power Party’s parliamentary meeting held at the National Assembly on the afternoon of the 25th, Yoon said, “The Special Act on Jeonse Fraud is the result of bipartisan agreement reached with the best alternatives, and the government also sought ways to realize the opposition party’s proposals to the best of its ability.”

On the other hand, the opposition parties emphasized the need for follow-up supplementary legislation. Park Kwang-on, floor leader of the Democratic Party of Korea, said, “Regarding issues that could not be addressed during the legislative process or newly revealed problems, the Democratic Party will take responsibility and proceed with supplementary legislation,” adding, “We promise to continuously fill the gaps in measures against jeonse fraud.” Bae Jin-kyo, floor leader of the Justice Party, also stated at the party’s executive committee meeting, “The Special Act processed in today’s plenary session is a half-baked law that does not fully uphold the principle of ‘relief first, recovery later,’” and added, “Clear legislative plans must be presented so that the ruling and opposition parties’ promises for supplementary legislation do not remain mere words.”

During the plenary session, Yong Hye-in of the Basic Income Party and Kang Sung-hee of the Progressive Party also opposed the bill, pointing out its limitations.

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