Government: "Jeonse Fraud Still Rampant... Strict Crackdown Without Time Limit"

As large-scale jeonse fraud damages continue nationwide in cities such as Daejeon and Suwon, the government announced that it will "mobilize all government capabilities to strictly crack down indefinitely."

On the 1st, the Ministry of Justice, Ministry of Land, Infrastructure and Transport, and the National Police Agency held a joint briefing at the Government Seoul Office, stating, "We will eradicate jeonse fraud and fully support the recovery of damages." The special nationwide crackdown on jeonse fraud, which has been conducted at the government level since July last year, is set to end at the end of this year, but the government expressed its intention to extend the crackdown indefinitely. However, no new separate measures were announced.

Minister of Justice Han Dong-hoon is speaking at the joint briefing of related ministries held on the 1st at the Government Seoul Office in Jongno, Seoul, to thoroughly eradicate jeonse fraud and continuously promote faithful victim recovery. Photo by Jo Yong-jun jun21@

Han Dong-hoon, Minister of Justice, pointed out, "Despite the government's efforts so far, many victims have occurred due to a recent jeonse fraud case in Suwon, and the public's concerns and anxieties remain." He added, "I recently read a book titled 'Jeonse Hell' written by a young person born in 1991. It revealed the reality of victims who lost their jeonse deposits, which they had saved day by day while dreaming of housing stability, in an instant." He emphasized, "We will thoroughly investigate jeonse fraud crimes that inflict irreparable wounds on future generations and impose punishments commensurate with the crimes."

Yoon Hee-geun, Commissioner of the National Police Agency, emphasized that jeonse fraud crimes are a "national issue," stating, "We will significantly strengthen intelligence gathering on crimes to proactively block jeonse fraud and form a dedicated team to track criminal proceeds to recover the hard-earned assets of ordinary citizens to the very end."

Won Hee-ryong, Minister of Land, Infrastructure and Transport, said, "We will boldly shorten administrative procedures that delay decisions on victims so that desperate victims can receive necessary support as soon as possible."

Yoon Hee-geun, Commissioner of the National Police Agency, is answering reporters' questions at a joint briefing of related ministries held on the 1st at the Government Seoul Office in Jongno, Seoul, aimed at eradicating jeonse fraud and continuously promoting thorough victim recovery. Photo by Jo Yong-jun jun21@

The National Police Agency’s National Investigation Headquarters has arrested 5,568 suspects in 1,765 jeonse fraud cases over 14 months since July last year. Among them, 481 were detained. According to court rulings, the amount seized and preserved through confiscation and recovery is 116.35 billion KRW.

The prosecution has designated 71 dedicated prosecutors for jeonse fraud cases across 54 prosecution offices to handle indictments and trials. The main suspect in the "Gyeonggi Gwangju Villa Jeonse Fraud Case," involving 110 victims and damages of 12.3 billion KRW, was sentenced to 15 years in prison in the first trial. The main suspect in the "Three Mothers Jeonse Fraud Case," with 355 victims and damages amounting to 79.5 billion KRW, received a 10-year prison sentence in the first trial for some of the crimes, while trials for the remaining charges are ongoing.

The prosecution also applied charges of organized crime to related parties in cases such as the Incheon Michuhol-gu Construction King case, Gwangju Villa King case, and the real estate agency office cases in the metropolitan area, bringing them to trial.

On the 1st, Won Hee-ryong, Minister of Land, Infrastructure and Transport, is answering reporters' questions at the joint briefing of related ministries held at the Government Seoul Office in Jongno, Seoul, aimed at thoroughly eradicating jeonse fraud and continuously promoting faithful victim recovery. Photo by Jo Yong-jun jun21@

Since the enactment of the Jeonse Fraud Special Act, the Ministry of Land, Infrastructure and Transport has formed a Victim Support Committee, which has determined victims in 7,590 cases and provided emergency suspension of auctions and low-interest loans for 2,662 cases.

Despite government efforts, large-scale jeonse fraud damages continue, raising concerns. There are also criticisms that victims of multi-family housing jeonse fraud have not received the main benefits of the special law enacted in June, highlighting blind spots in support.

Minister Won said, "Since its inauguration, the Yoon Seok-yeol administration has recognized the seriousness of jeonse fraud, a crime affecting people's livelihoods, and has responded with full force. Nevertheless, as past lease contracts expire, jeonse fraud damages continue to occur." He added, "We are carefully reviewing tailored support measures for tenants of multi-family houses and will actively participate in the National Assembly's deliberation process regarding supplementary support measures."

Minister of Justice Han Dong-hoon is speaking at the joint briefing of related ministries held on the 1st at the Government Seoul Office in Jongno, Seoul, with Minister of Land, Infrastructure and Transport Won Hee-ryong and Commissioner of the National Police Agency Yoon Hee-geun in attendance, aimed at eradicating jeonse fraud and continuously promoting thorough victim recovery. Photo by Jo Yong-jun jun21@

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