Busan City Ensures Housing Stability for Jeonse Fraud Victims... Full-Scale Implementation of 'Busan-Style Financial and Housing Support'

Providing a Practical Foundation for Housing Stability, Strengthening Support for Jeonse Fraud Victims' Recovery

From the 12th, Online Applications via Website and Offline at Jeonse Damage Support Center

Busan City will officially launch the ‘Busan-type Jeonse Fraud Victim Financial and Housing Support Project’ from the 12th to assist tenant victims struggling due to jeonse fraud.

On April 24, Mayor Park Hyung-jun announced the ‘Busan City Jeonse Victim Support Expansion Plan’ after conducting a survey on jeonse fraud damage and holding meetings with tenant representatives to eradicate jeonse fraud and provide prompt victim support.

This project follows the enactment of the ‘Special Act on Support and Housing Stability for Jeonse Fraud Victims’ (effective June 1, 2023) and the ‘Busan City Ordinance on Prevention and Protection of Housing Lease Damage,’ establishing a legal basis for supporting victim tenants. Accordingly, the city has prepared and is implementing a Busan-type support policy for victim tenants.

The ‘Busan-type Jeonse Fraud Victim Financial and Housing Support Project’ provides support in the form of ‘relocation + housing for 2 years (jeonse or monthly rent)’ to help tenant victims of jeonse fraud overcome difficulties and achieve practical housing stability for two years.

In response to the spread of jeonse fraud damage, the city judged that prompt support for victim tenants is necessary and has secured support funds by allocating 1.4 billion KRW from contingency funds as a priority.

The support targets are tenant victims who have been designated as ‘jeonse fraud victims or similar’ by the Ministry of Land, Infrastructure and Transport’s Jeonse Fraud Victim Support Committee under the Special Act.

As of September 5, 2023, the number of jeonse fraud victims and similar persons in Busan City is 582 and 83, respectively.

The support includes three main components: ▲interest support for Jeonse Fraud Victim Tenant’s Buttress Jeonse Loans ▲temporary monthly rent support for private housing for Jeonse Fraud Victim Tenants ▲relocation cost support.

The ‘Jeonse Fraud Victim Tenant Buttress Jeonse Loan Interest Support Project’ provides interest support ranging from 1.2% to 2.1% for up to two years (24 installments) to non-homeowners designated as ‘jeonse fraud victims or similar’ who have taken out low-interest jeonse loans, low-interest refinancing loans, or priority repayment buttress loans. This effectively means Busan City covers the entire loan interest for two years for those with a combined annual household income of 70 million KRW or less.

The ‘Temporary Monthly Rent Support Project for Jeonse Fraud Victim Tenants in Private Housing’ provides monthly rent support up to 400,000 KRW for a maximum of two years on an actual cost basis for non-homeowners designated as ‘jeonse fraud victims or similar’ who relocate to private housing and reside under a monthly rent arrangement.

The ‘Relocation Cost Support Project’ provides a fixed relocation cost of 1.5 million KRW to those designated as ‘jeonse fraud victims or similar’ who move from the damaged housing to public or private housing. Applications must be submitted within three months after moving. However, an exception is made for households designated as ‘jeonse fraud victims or similar’ in June 2023, when the Special Act was enacted, who moved in the same month and apply for relocation costs in September.

Applications for the ‘Busan-type Jeonse Fraud Victim Financial and Housing Support Project’ can be submitted online through the city hall website starting from the 12th. Applications submitted within the month will be reviewed and supported by the 20th of the following month.

Applications can be made through the ‘Jeonse Victim Support (Financial and Housing Support for Jeonse Fraud Victims, etc.)’ menu under the ‘Urban, Architecture, Housing’ section on the Busan City website.

If online submission is not possible, applications can also be submitted in person at the Busan Jeonse Victim Support Center on the first floor of City Hall.

For detailed information on the project application, please refer to the announcement on the Busan City website or contact the Busan Jeonse Victim Support Center.

The city plans to continue supporting households designated as ‘jeonse fraud victims or similar’ until May 2025, when the temporary Special Act expires, considering Busan’s financial conditions.

Mayor Park Hyung-jun stated, “We will promptly implement the jeonse victim support project to help victim tenants regain housing stability,” and added, “We ask all citizens to carefully verify contracts once more to prevent jeonse fraud.”

Busan City continues to promote victim tenant support policies and strives to provide practical recovery assistance to victim tenants.

The city is strengthening education and publicity to prevent and eradicate jeonse fraud, providing emergency housing support for victim tenants needing temporary shelter, and working to manage facilities such as elevators and fire safety in buildings affected by jeonse fraud to ensure housing safety.

Since August 7, the ‘Busan City Jeonse Victim Support Center,’ relocated to the first floor of City Hall, has been providing one-stop services including application reception for designation as jeonse fraud victims, legal and psychological counseling, and issuance of jeonse damage confirmation certificates.

Busan City Hall.

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