Jeonse Fraud Deposit 'Advance Compensation - Subsequent Recovery' Government: "Trillions of Won in Public Funds Spent, Unable to Recover"

On the 27th, the National Assembly Land, Infrastructure and Transport Committee 'Pre-Recall-Post-Recall' Law Sent Directly to Plenary Session
Ministry of Land, Infrastructure and Transport: "Will Remain a Bad Precedent Increasing Public Burden"
Vote in Plenary Session Expected to Take More Than 30 Days

Victims of jeonse fraud held a press conference on the 18th in front of the Presidential Office in Yongsan-gu, Seoul, urging the establishment of measures to address jeonse fraud damages. Photo by Dongju Yoon doso7@

As the amendment to the Special Act for Jeonse Fraud Victims, which centers on the 'advance relief and subsequent recovery' of deposits, was processed on the 27th afternoon at the National Assembly Land, Infrastructure and Transport Committee to be directly submitted to the plenary session, the Ministry of Land, Infrastructure and Transport stated, "If the 'advance relief and subsequent recovery' clause of the Jeonse Fraud Victims Act, passed solely by the opposition party, is implemented, it is expected that trillions of won of taxpayers' money will be injected, and a significant portion of it will not be recovered."

Government: "Issues of Fairness Will Arise"

The Ministry of Land, Infrastructure and Transport added, "This is tantamount to repaying the debts of malicious landlords with taxes, raising concerns about fairness with other fraud victims," and said, "If a bill that increases the national burden is pushed forward without sufficient consensus, it will cause severe social conflict and set a bad precedent."

The ministry also stated, "The government and ruling and opposition parties engaged in intense discussions and deliberations last May to provide relief for Jeonse fraud victims, reaching an agreement to enact the Jeonse Fraud Victims Act. Based on this, various supports including housing, financial, and legal assistance have been provided to approximately 6,500 cases of victims," and requested, "We ask that the spirit of the agreement at the time of enactment be revived. The government will also continue to supplement support measures to alleviate victims' housing insecurity and ensure meticulous assistance."

The National Assembly Land, Infrastructure and Transport Committee held a plenary meeting that afternoon and passed the 'Request for Submission to the Plenary Session of the Amendment to the Special Act on Support for Jeonse Fraud Victims and Housing Stability.' Members of the ruling People Power Party opposed the bill and walked out. The amendment was put to a secret ballot attended only by opposition members, with all 18 votes cast in favor out of 18 total votes. Seventeen Democratic Party members and Justice Party member Shim Sang-jung participated in the vote.

Democratic Party Unilateral Passage

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

This bill had been pending at the Legislation and Judiciary Committee but was returned to the Land, Infrastructure and Transport Committee and processed for direct submission to the plenary session on this day. According to Article 86 of the National Assembly Act, if a bill has been pending in the Legislation and Judiciary Committee for more than 60 days, the standing committee in charge can request submission to the plenary session with the approval of three-fifths of its members.

In reality, it is expected to take more than 30 days before this bill is put to a vote in the plenary session. A Ministry of Land, Infrastructure and Transport official explained, "When the standing committee in charge decides to directly submit to the plenary session, the ruling and opposition parties must have a deliberation period, which is 30 days. If no agreement is reached, the opposition party can unilaterally submit the bill to the plenary session."

This bill focuses on providing 'advance relief and subsequent recovery' to Jeonse fraud victims. Institutions such as the Housing and Urban Guarantee Corporation (HUG) or Korea Asset Management Corporation (KAMCO) purchase the deposit return claims of houses involved in Jeonse fraud to prioritize relief for the victim tenants and later claim reimbursement from the landlords to recover costs.

The amendment also relaxes the limit on tenant deposit amounts recognized for Jeonse fraud victims from the current 300 million won or less to 500 million won or less and includes foreigners among the tenants who can be recognized as victims.

Kim Jeong-jae, the ruling party secretary of the National Assembly Land, Infrastructure and Transport Committee, criticized before the vote during a procedural speech, saying, "The Democratic Party's excessive legislative rampage continues until the end of the 21st National Assembly," and added, "They are misleading the practically unacceptable 'advance relief and subsequent recovery' as a substantial support measure and trying to politically exploit it ahead of the general election."

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