Woori Financial Group Invests 530 Billion KRW to Support Jeonse Fraud Victims

Woori Financial Group announced on the 20th that it will implement the "Housing Stability Program That Supports Us," a 530 billion KRW initiative to assist victims of jeonse fraud. The program includes financial support such as emergency loans for victims, on-site loan consultations, and non-financial support services like real estate rights verification.

First, Woori Bank will allocate 530 billion KRW to provide emergency loans aimed at stabilizing the housing situation of jeonse fraud victims. To offer tailored support based on the victims' circumstances, three loan options have been prepared: jeonse deposit loans, home purchase loans, and auction deposit loans. For victims whose properties have been auctioned off or who have lost their residences, up to 150 million KRW per household for jeonse deposit loans (230 billion KRW) and up to 200 million KRW for home purchase loans (150 billion KRW) will be provided. The home purchase loans have a maximum loan term of 40 years (with a 5-year grace period) to help establish a stable living environment. For victims who wish to acquire properties currently under auction or scheduled for auction, auction deposit loans (150 billion KRW) will be offered up to a maximum of 200 million KRW within the court-determined appraisal value.

The program targets victims who have received a jeonse fraud victim confirmation certificate through the Jeonse Fraud Support Center, starting with Michuhol-gu in Incheon, where jeonse fraud cases are concentrated, and plans to expand to other government-designated affected areas.

To ease the interest burden on these loans, the interest rate will be reduced by 2 percentage points for the first year, followed by the application of the lowest rates available for each product. Additionally, to expedite loan support, Woori Financial Group plans to request financial authorities to temporarily exempt victims from household loan regulations such as LTV (Loan-to-Value ratio) and DSR (Debt Service Ratio). They will also request exemption from liability for bank staff managing these loans in case of loan defaults.

Non-financial support measures such as operating on-site loan consultation teams and preventing jeonse fraud will also be promoted. A mobile branch will be set up near the Incheon Jeonse Fraud Support Center to facilitate swift loan processing. Two professional examiners and two counseling managers will be assigned. Furthermore, a free "Real Estate Rights Verification Safety Service" will be provided to victims when they move to new residences to confirm real estate rights relationships.

A Woori Financial Group official stated, "The emergency measures were prepared under the leadership of Woori Bank’s newly established Win-Win Finance Department, which supports financially marginalized groups," adding, "We will actively participate not only in this program but also in government-led measures such as the auction deferral program to support victims of jeonse fraud."

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