Busan City Implements 'Busan-type Jeonse Fraud Victims Financial and Housing Support Project'

Online Application via Website, Offline Registration at Jeonse Damage Support Center (City Hall 1st Floor)

Busan City will continue to assist victims of jeonse fraud by maintaining the “Busan-type Jeonse Fraud Victim Financial and Housing Support Project,” which was launched last year to provide prompt support to affected tenants.

In September of last year, Busan City implemented the “Special Act on Support for Jeonse Fraud Victims and Housing Stability (effective June 1, 2023)” and enacted the “Busan City Ordinance for the Prevention of Housing Lease Damage and Protection of Housing Lease,” thereby initiating the “Busan-type Jeonse Fraud Financial and Housing Support Project.”

From September to November 2023, a total of 83 cases were received, with 66 cases supported, and 49 individuals recognized as jeonse fraud victims under the special act receiving assistance. Selected recipients will receive support for up to two years (24 installments). Applications submitted in December 2023 are scheduled to be paid in January this year.

To ensure housing stability for tenants affected by jeonse fraud, the city will continue the “Busan-type Jeonse Fraud Victim Financial and Housing Support Project” in 2024. The project consists of three components, the same as in 2023: ▲Interest support for Jeonse victims’ Buttress Jeonse loans ▲Temporary monthly rent support for Jeonse victims in private housing ▲Relocation expense support.

The “Interest Support Project for Jeonse Victims’ Buttress Jeonse Loans” provides support for loan interest ranging from 1.2% to 3.0% (up to 400,000 KRW per month) for up to two years (24 installments) to non-homeowners recognized as “Jeonse Fraud Victims, etc.” who have taken out low-interest Jeonse loans, low-interest refinancing loans, or priority repayment Buttress loans. This reflects the increased interest rates linked to government housing and urban fund loan rates. The interest rate cap has been raised from 2.1% to 3.0% due to the raised income criteria.

The “Temporary Monthly Rent Support Project for Jeonse Victims in Private Housing” provides monthly rent support up to 400,000 KRW in actual expenses for up to two years to non-homeowners recognized as “Jeonse Fraud Victims, etc.” who relocate to private housing and live in a monthly rent arrangement.

The “Relocation Expense Support Project” offers a fixed relocation allowance of 1.5 million KRW to “Jeonse Fraud Victims, etc.” who move from the damaged housing to public or private housing. Applications must be submitted within three months after moving.

Applications for project support will be accepted online through the Busan City Hall website starting from the 2nd. Applications submitted within the month will be reviewed and supported by the 20th of the following month.

Applications can be made via the “Jeonse Damage Support (Jeonse Fraud Victim Financial and Housing Support Application)” menu under the “Urban, Architecture, Housing” section on the Busan City website.

If online application is not possible, applications can be submitted at the Busan Jeonse Damage Support Center located on the first floor of Busan City Hall.

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

Mayor Park Hyung-jun stated, “Our city will continue to promote support projects to ensure housing stability and practical recovery for tenants affected by jeonse fraud, and we will make every effort to prevent the spread of jeonse fraud in Busan.”

Busan City is improving various aspects for the convenience of tenants affected by jeonse fraud and is striving to provide support where it is truly needed.

To enable visitors to the Jeonse Damage Support Center to receive financial counseling in one place, the city is collaborating with Kookmin Bank on the third floor of City Hall to provide one-stop financial counseling. Additionally, a telephone counseling reservation system will be established in February for victims who find it difficult to visit the support center.

Furthermore, Busan City has signed an agreement with the Busan Bar Association to prevent jeonse fraud and provide legal service support, aiming to develop and promote new projects to offer greater assistance to affected tenants.

Busan City Hall.

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