Busan City Actively Responds to Jeonse Fraud Damage Investigation... First Decision on 60 Victims

June 28 Ministry of Land, Infrastructure and Transport's 'Jeonse Fraud Victim Support Committee' Makes First Decision on Jeonse Fraud Victims

265 Applications for Decision First Approved ... Busan 60 Cases, Incheon 199 Cases, Gyeongnam 3 Cases, Gan

Busan City announced that following the enforcement of the "Special Act on Support for Jeonse Fraud Victims and Housing Stability" (effective June 1, 2023), the Jeonse Fraud Victim Support Committee (hereinafter referred to as the "Committee") on June 28 made the first official decision recognizing 60 collective victims of the Jeonse fraud case involving officetels in Yangjeong-dong, Busan as "Jeonse fraud victims."

Busan City Hall.

The Yangjeong-dong officetel case involved tenants who, at the end of May, requested Busan City to urgently suspend the auction because the third auction sale date for the affected property was scheduled for mid-June, and even with the Special Act in effect, the property could be sold at auction.

If the auction had proceeded in June before the Committee’s first decision on Jeonse fraud victims scheduled for late June after the Special Act’s enforcement, the victims would have inevitably suffered the full extent of the damage.

Accordingly, the city urgently conducted a "preliminary investigation of Jeonse fraud victim facts" to request suspension or postponement of public and private auctions before the law’s enforcement through consultations with the Ministry of Land, Infrastructure and Transport (MOLIT). After the law took effect, on June 2, an urgent application for auction suspension was submitted to MOLIT, and on June 12, the Committee decided to suspend and postpone the auction.

Following the legal procedures for the "investigation of Jeonse fraud victim facts," on June 28, the Committee officially recognized 60 officetel tenants as the first "Jeonse fraud victims."

Since the enforcement of the Special Act, as of June 28, Busan City has received 475 applications for "Jeonse fraud victim determination." Of these, 324 cases are currently under factual investigation by the city, and 151 cases have completed investigation and are either reviewed (60 cases) or under review (67 cases) by the MOLIT Committee.

To support Jeonse fraud victims, Busan City opened the "Busan City Jeonse Victim Support Center" on April 3 on the first floor of Busan Urban Corporation in Busanjin-gu, providing legal and psychological counseling, emergency housing and financial support, and issuing victim confirmation certificates (through the Housing and Urban Guarantee Corporation).

The city plans to relocate the Jeonse Victim Support Center to Busan City Hall in August to provide one-stop services for "Jeonse fraud victim determination applications" and further support victims.

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