Junho Jung’s 'Trust Lease Fraud Victim Relief Act' Passes National Assembly

The "Trust Lease Fraud Victim Relief Act," sponsored by Junho Jung, a member of the Democratic Party of Korea, has passed the National Assembly plenary session. The legislation focuses on lowering the threshold for relief by specifying the public purchase procedures for houses affected by trust-related fraud.

According to the National Assembly and other sources on April 24, the "Partial Amendment to the Special Act on Support for Lease Fraud Victims and Housing Stability," sponsored by Assemblyman Jung (representing Buk-gu Gap, Gwangju) of the Land, Infrastructure and Transport Committee, was passed by the plenary session the previous day.

Junho Jeong, member of the Democratic Party of Korea.

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According to data from the Ministry of Land, Infrastructure and Transport, among the 37,644 lease fraud victims, those in their 20s accounted for 25.8%, and those in their 30s accounted for 50.3%, bringing the proportion of victims in their 20s and 30s to as high as 76%. In addition, 97.6% of the deposit losses were for amounts of 300 million won or less, with the largest group (43.2%) losing between 100 million and 200 million won. There were also 1,794 reported cases of damage in the Gwangju and Jeonnam areas.

The trust lease fraud scheme involves transferring building ownership to a trust company and then deceiving tenants to steal their deposits. Due to the complexity of the structure, there have been frequent delays in the public acquisition process. According to data submitted by Korea Land & Housing Corporation (LH) to Assemblyman Jung's office, as of April 22, the completion rate for the purchase of houses affected by trust fraud stood at only 9.2% (260 applications, 24 completed). This is only a quarter of the overall completion rate for lease fraud victim housing purchases, which is 37.7% (21,842 applications, 8,226 completed).

The amendment includes provisions requiring trust companies to consult with public housing operators and to submit in writing their desired sale price and legal status. These measures are intended to clarify the public acquisition procedures for houses affected by trust fraud.

Assemblyman Jung stated, "Trust lease fraud is structurally sophisticated, making it difficult for young people with little social experience to receive legal protection even after suffering damage. With the passage of this amendment, relief for victims who have fallen through the cracks of the system will now be implemented in earnest." He added, "We will continue to supplement the system to establish a housing safety net for young people."

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