Incheon City's Jeonse Fraud Victim Support Budget Execution Rate at 0.9%... Yong Hye-in "Lack of Will"

The execution rate of the damage support budget in Incheon, where the most cases of jeonse fraud have occurred, was found to be less than 1%.

According to data received by Yong Hye-in, a member of the National Assembly's Public Administration and Security Committee from the Basic Income Party, from Incheon City on the 18th, the jeonse fraud damage support budget executed from June to the 4th of this month was 55.56 million KRW (0.88%) out of a total of 6.3 billion KRW. This includes 52.23 million KRW for moving expenses support for emergency support housing residents, 2.93 million KRW for interest support on low-interest jeonse loans, and 400,000 KRW for monthly rent support.

The number of budget applications was only 65, which is just 4.2% of the 1,540 households recognized as victims of jeonse fraud in Incheon. Except for one case, all budget support applications were approved.

Incheon City explained that the low execution rate of the monthly rent and moving expenses support budget is due to the early stage of the enforcement of the Jeonse Fraud Special Act and a decrease in demand for such support applications due to the use of auctions, public sales, and preemptive purchase rights.

However, Representative Yong pointed out, "In the case of loan interest support, since it is a project funded by Incheon City's finances, the city can set its own income criteria through an agreement with the city treasury bank, but it insists on the government support standard (70 million KRW) and is neglecting to discover new essential support measures like management fee support," adding, "The main reason for the absurdly low execution rate compared to the number of victim households is the lack of will from Incheon City."

Representative Yong also stated, "When inquiring about the payment status of management fees in the housing complexes most concentrated with jeonse fraud victims in Michuhol-gu, Incheon City responded that 'there is no data because there is no reporting obligation,'" and claimed, "Even though victims are suffering due to poor housing management, no actual condition survey is being conducted." Michuhol-gu has identified 2,484 households in 242 housing complexes as victims of jeonse fraud.

Representative Yong urged the enactment of an ordinance at the Incheon City level for practical and stable support. He explained that without a support ordinance and with policies designed only through temporary budgets via supplementary budgets, related budgets may disappear or be significantly reduced when new budgets are prepared due to changes in the fiscal year, and that it is necessary to legally establish grounds for utilizing resources such as disaster relief funds, integrated financial stabilization funds, and disaster contingency funds.

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