Democratic Party Proposes Follow-up Measures on Jeonse Fraud: "We Will Strengthen Real Estate Agent Accountability"

"Promotion of 'Improvement of Guarantee System, Eradication of False Disclosures, Strengthening Punishment for Malicious Landlords'"

The Democratic Party of Korea announced that as a follow-up measure to the jeonse fraud, it will strengthen the responsibility of licensed real estate agents and ease the requirements for subscribing to the jeonse deposit guarantee insurance. They also promised to promote measures such as strengthening the verification of official prices of apartment complexes to prevent false public announcements of jeonse prices.

On the 11th, the Democratic Party's Policy Committee and members of the Land, Infrastructure and Transport Committee held a press conference at the National Assembly on the "Follow-up Measures to the Jeonse Fraud Special Act." As additional supplementary measures, the Democratic Party proposed ▲improvements to the licensed real estate agent system ▲improvements to the guarantee system including securing the highest priority repayment amount and tenants' opposability ▲eradication of false public announcements ▲strengthening punishment for malicious landlords.

Regarding improvements to the licensed real estate agent system, they stated, "Along with personnel management and enhanced education for licensed real estate agents and brokerage assistants, improvements to the licensed real estate agents' mutual aid system are also necessary." They added, "We are exploring various measures such as mandating licensed real estate agents to provide information on matters tenants easily overlook during the contract process, such as the status of fixed-date registration and notification of the highest priority repayment amount, and legalizing the licensed real estate agents' association as a statutory body to ensure their self-regulatory efforts."

Regarding improvements to the guarantee system, they promised, "We will promptly process bills already proposed, such as the 'Housing Lease Protection Act,' which secures tenants' opposability upon delivery of the house." Additionally, they said, "We will expedite the processing of related bills to prevent blind spots in the system, such as cases where the highest priority repayment amount exceeds the scope during contract renewal or when the highest priority repayment amount is received at the time of mortgage registration, and focus on easing the requirements for subscribing to the jeonse deposit guarantee insurance." Furthermore, "We are also considering introducing a post-settlement method where the Housing and Urban Guarantee Corporation strengthens its responsibility by recovering unreturned deposits and paying the affected tenants."

Regarding the eradication of false public announcements, they said, "A measure to strengthen the verification of official prices of apartment complexes is necessary to prevent cases where the jeonse market price is unclear, such as in newly built villas where the official price is not clear."

Regarding strengthening punishment for malicious landlords, they stated, "Since the law allowing the Housing and Urban Guarantee Corporation to disclose malicious landlords has passed, it is also necessary for other jeonse deposit subrogation institutions, such as the Korea Housing Finance Corporation and Seoul Guarantee Insurance Corporation, to disclose malicious landlords."

Regarding the already enforced Jeonse Fraud Special Act, the Democratic Party said, "Limiting the eligibility criteria for refinancing loans and low-interest loans to a combined spousal income of 70 million won or less is a clear government mistake," and added, "The combined spousal income criterion of 70 million won or less, which undermines the legislative intent, must be improved immediately." Regarding the Victim Support Committee, they argued, "Since it is centered on legal professionals, decisions about victims may become rigid," and insisted, "In line with the original spirit of bipartisan agreement, representatives of victim organizations or those recommended by victim organizations should be included in the committee's composition."

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