The Democratic Party Proposes Consecutive Bills to Amend Laws for Recovering Jeonse Fraud Damages
by Lee Hyeonjoo
Published 02 May.2023 09:25(KST)
Jeon Bong-min "Compensate Damage through Confiscation and Recovery of Corrupt Assets"
Lee Heon-seung Proposes Raising Priority Repayment Limit
Legislation to support victims of jeonse fraud is being consecutively proposed by the ruling party.
According to the National Assembly on the 2nd, Jeon Bong-min, a member of the People Power Party, officially proposed the "Partial Amendment to the Act on the Confiscation and Recovery of Corrupt Property" the day before.
The amendment proposed by Representative Jeon includes jeonse fraud in the category of "specific fraud crimes" under the Corrupt Property Confiscation Act, blocking suspects of jeonse fraud from disposing of or hiding assets before indictment, and enabling victims to promptly recover damages through confiscation and collection.
Under current law, confiscation and collection before indictment are limited to cases such as fraudulent fundraising, pyramid schemes, criminal organizations, and voice phishing scams, making it difficult to confiscate and collect assets from fraudsters to restore damages to victims of jeonse fraud.
Lee Heon-seung, also a member of the People Power Party, proposed amendments to the Act on the Confiscation and Recovery of Corrupt Property and the Housing Lease Protection Act to raise the priority repayment amount. The corrupt property confiscation law amendment is similar to Representative Jeon's bill.
The amendment to the Housing Lease Protection Act raises the scope of the deposit eligible for priority repayment from the current "within half of the housing value" to "within three-quarters," requires that when setting standards, the average deposit be considered by subdividing by region and housing type, and guarantees full priority repayment rights for small leasehold claims.
The government recently announced support measures such as granting priority purchase rights to victims when jeonse fraud victim houses are auctioned or sold through public sales, and providing financial support if the victim tenant wins the bid in such auctions or sales.
The day before, the National Assembly Land, Infrastructure and Transport Committee held a subcommittee meeting to begin reviewing a special law for supporting victims of jeonse fraud. The Jeonse Fraud Special Act, prepared by the government and ruling party, includes the "Special Act on Support for Jeonse Fraud Victims and Housing Stability," officially proposed by Kim Jeong-jae of the People Power Party, as well as bills from Cho Oh-seop of the Democratic Party and Shim Sang-jung of the Justice Party, which were merged for review.
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