Jeonse Fraud Victims' Large Refinancing Loan Expanded from 240 Million to 400 Million Won

Income requirement for refinancing loans raised from 70 million to 130 million won
Public rental housing and litigation support provided for trust fraud victims

The government will ease the income requirements for low-interest refinancing loans for victims of Jeonse fraud from a combined annual income of 70 million KRW for couples to 130 million KRW. The Jeonse deposit requirement will also be expanded from 300 million KRW to 500 million KRW.

Victims of jeonse fraud and empty jeonse are participating in a relay speech on the 25th at the protest site in front of the National Assembly in Yeouido, Seoul, urging for proper resolution of jeonse fraud and empty jeonse issues. Photo by Hyunmin Kim kimhyun81@

On the 5th, the Ministry of Land, Infrastructure and Transport announced supplementary measures to support victims of Jeonse fraud, including these changes. Since the enactment of the Special Act on Jeonse Fraud in June, 6,063 cases have been recognized as Jeonse fraud victims over four months, but there were criticisms that some victims were excluded from support or faced procedural inconveniences, prompting the preparation of these supplementary measures.

First, the requirements for low-interest refinancing loans aimed at reducing the interest burden for victims who cannot continue living in their existing Jeonse homes due to fraud will be relaxed. Currently, loans up to 240 million KRW at 1-2% interest are provided only if the annual income is 70 million KRW or less and the deposit is 300 million KRW or less, but strict loan conditions excluded some from support. Therefore, the income requirement will be expanded to 130 million KRW annually, the deposit limit to 500 million KRW, and the loan amount increased to up to 400 million KRW.

The government will also prioritize supplying nearby public rental housing to victims of trust fraud who do not have a right of first refusal (at 30-50% of market price, with a maximum residence period of 20 years), and will use public rental housing as emergency housing (at about 30% of market price, with a maximum residence period of 2 years) for foreigners and overseas Koreans facing eviction risks.

Legal support for victims will also be strengthened. If victims wish to receive legal assistance for procedures such as securing an execution order to initiate auction (deposit payment order, deposit return claim lawsuit) or claiming damages from real estate agents, legal experts will be connected and supported up to 2.5 million KRW per person.

In particular, even if the inheritance procedures of a deceased landlord are not completed, victims will be recruited through regular public announcements to facilitate smooth follow-up procedures such as auctions, and the costs for filing a petition to appoint an inheritance property manager will be supported.

Park Byeong-seok, head of the Jeonse Fraud Victim Support Team, said, “To ensure the swift recovery of victims of Jeonse fraud, we will continue to promptly identify victims and continuously improve support measures.”

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