'Speedy Resolution' Special Law on Jeonse Fraud... National Assembly Faces 'Difficulties' for Next Month's Passage

The National Assembly is accelerating the preparation of a special law to assist victims of jeonse fraud. The ruling and opposition parties plan to begin reviewing the special law containing the government's countermeasures against jeonse fraud in the relevant standing committee within a day and aim to reach an agreement by the 2nd of next month. However, significant differences between the parties are expected to make the legislative process difficult.

On the afternoon of the 28th, the Land, Infrastructure and Transport Committee (LITC) will hold a plenary meeting to submit three proposed bills: the "Special Act on Support for Jeonse Fraud Victims and Housing Stability," led by Kim Jeong-jae of the People Power Party; the "Special Act on Recovery of Deposit and Support for Housing Stability for Tenants," proposed by Jo O-seop of the Democratic Party; and the "Special Act on Protection of Tenants of Rental Properties with Unreturned Deposits," proposed by Shim Sang-jung of the Justice Party.

Kim Jeong-jae, the ruling party's secretary of the LITC, stated at the party's morning floor strategy meeting, "Next Monday (the 1st of next month), these bills are scheduled to be discussed in the LITC's bill subcommittee, along with laws aimed at reducing jeonse fraud damage. I believe there will be no time for the ruling and opposition parties to bicker over these issues in the subcommittee. I hope the bills will be well discussed and processed on Monday," he emphasized.

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The special law announced earlier by the government grants priority purchase rights to tenants who are victims of jeonse fraud. If they do not wish to purchase, public institutions such as the Korea Land and Housing Corporation (LH) will buy the property and provide it as public rental housing. However, the opposition party's demand for 'purchase of deposit claims' has been excluded, and there are criticisms that the scope of the special law's application is too narrow.

The government's proposal defines six conditions for the application of the special law: ▲ tenants who have established opposability and obtained a fixed date ▲ initiation of auction or public sale proceedings on the leased property ▲ consideration of area and deposit amount for low-income tenant housing ▲ cases where there is suspicion of jeonse fraud intent such as investigation commencement ▲ occurrence of multiple victims ▲ and cases where there is a significant risk of non-return of the deposit.

Jo O-seop, a member of the LITC and the main proposer of the related bill from the Democratic Party, told this outlet in a phone interview, "The bill will be submitted today and reviewed in the subcommittee on the 1st of next month, and if an agreement is reached, the goal is to pass it on the 2nd." However, he added, "Although parts demanded by the Democratic Party, such as LH purchase rental and priority purchase rights, are included in the government proposal, the purchase of deposit return claims is not included at all, which is expected to be a major issue." Jo said, "According to the government proposal, all six conditions must be met to be eligible for the special law. I wonder if this applies to even 10% of all victims. The scope needs to be expanded."

Maeng Seong-gyu, chairman of the Democratic Party's Special Committee on Jeonse Fraud, also said, "The bill must be discussed and concluded by the 1st or 2nd." Regarding criticism that the criteria for victims of jeonse fraud are too strict, Maeng said, "The purpose of creating a special law is to help as many victims as possible." He added, "We plan to have in-depth discussions on issues such as relaxing the victim criteria." Maeng, a former vice minister of the Ministry of Land, Infrastructure and Transport, changed the subcommittee from the Transport Bill Subcommittee to the Land Law Bill Subcommittee to review the special law for jeonse fraud victims.

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