Opposition Party to Reintroduce 'Empty Jeonse Special Act'... "To Be Submitted to the Land, Infrastructure and Transport Committee This Month"

Amid a series of extreme choices by victims of jeonse fraud, the opposition party has launched efforts to promote a special law to aid the victims. The plan includes a 'priority support followed by subrogation claim' method, where a specialized bond purchasing institution would prioritize buying the deposit return claims to help tenants affected by jeonse fraud. The Democratic Party intends to submit the related bill to the Land, Infrastructure and Transport Committee next week and aims for its swift passage.

On the afternoon of the 19th, the Policy Committee of the Democratic Party of Korea held a 'Jeonse Fraud Countermeasure Press Conference' at the National Assembly and announced a comprehensive plan containing these measures.

The Policy Committee proposed halting auctions on the affected properties for victims of jeonse fraud, having Korea Asset Management Corporation and others purchase the claims, provide advance compensation for the damages, and then allow the bond purchasing institutions to recover the funds through subrogation claims. In particular, they announced plans to push for the legislation of the 'Special Act on Recovery of Deposits and Support for Housing Stability for Residential Tenants' (led by Representative Jo Osip of the Democratic Party), which was introduced on the 30th of last month.

Kim Seong-ju, Senior Deputy Chairman of the Policy Committee of the Democratic Party of Korea, is speaking at an emergency press briefing on measures against jeonse fraud held at the National Assembly on the 19th. Photo by Kim Hyun-min kimhyun81@

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They also proposed to the government the implementation of unconditional emergency low-interest loans upon proof of jeonse fraud damage and a significant increase in the priority repayment amount. At the party level, they added plans to amend laws to mandate the establishment of a rental contract damage prevention organization to strengthen accountability for jeonse fraud damages.

To prevent jeonse fraud, they urged the establishment of an 'Intergovernmental Countermeasure Organization for Jeonse Fraud Prevention and Relief' under the Prime Minister's Office, involving relevant ministries. They also suggested easing the requirements for subscribing to deposit guarantee insurance for jeonse contracts and allowing tenants to subscribe to such insurance.

Furthermore, they announced the launch of a 'Jeonse Fraud Victim Reception Center' to collect victim cases and the formation of a 'Housing Rights Guarantee Task Force' to devise comprehensive housing measures.

The Democratic Party plans to push for the bill's submission to the Land, Infrastructure and Transport Committee, which is the relevant standing committee. Choi In-ho, the opposition party's secretary of the Land Committee and a Democratic Party lawmaker, stated at the briefing, "We will institutionalize measures to ensure the urgent return of jeonse deposits," adding, "We will submit and review the related bills in the Land Committee by April and strive to legislate them in the National Assembly as soon as possible."

He called for the participation of the government and the ruling party. During a Q&A session with reporters, Representative Choi said, "Representative Jo introduced the bill on the 30th of last month, and on the 3rd of this month, Sim Sang-jung of the Justice Party also introduced related legislation," adding, "We believe there is no ruling or opposition party when it comes to core livelihood issues, and we will do our best to cooperate." Representative Jo, who introduced the special law, also said, "The People Power Party agrees on the necessity of the special law," and added, "If they introduce the related bills and integrate them, the ruling and opposition parties can reach an agreement and proceed as quickly as possible."

The schedule for the full meeting of the Land Committee is under negotiation between the ruling and opposition party secretaries, with a high possibility of the meeting being held around the 27th. If the bill is submitted within this month, the Democratic Party plans to hold a public hearing in May and push for enactment around June to July. However, even if the bill passes the full committee, it is unlikely to be passed in the plenary session within this month.

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