○ Gyeonggi Province proposes improvements to the Ministry of Land, Infrastructure and Transport to support legally staying foreign victims of jeonse (lump-sum housing lease) fraud
– Special housing support measures allowing victims to continue living in affected homes
– Special financial support measures enabling access to low-interest jeonse loans and refinancing loans
Gyeonggi Province announced on August 9 that it had asked the Ministry of Land, Infrastructure and Transport to revise relevant laws and guidelines, including the Special Act on Support for Jeonse Fraud Victims and Housing Stability so that foreign victims of jeonse fraud who are legally residing in Korea can also receive government support.
The province requested that the Korea Land and Housing Corporation purchase the affected homes of foreign victims and use them for emergency housing support, allowing victims to continue living in their existing homes. It also proposed including foreign victims among those eligible for financial support so they can access low-interest jeonse loans backed by the Housing and Urban Fund, as well as refinancing loans that allow them to replace their existing loans.
Under the current system, foreigners are not excluded from the process of determining victims of jeonse fraud. However, even when foreign nationals are officially recognized as victims, they are excluded from major support programs, including access to public rental housing and financial assistance through the Housing and Urban Fund.
As a result, foreign victims cannot continue living in their affected homes even when they wish to do so for reasons such as employment or their children’s education. They also face difficulties accessing low-interest policy loans from the Housing and Urban Fund when they need funds for jeonse or refinancing.
Gyeonggi Province explained that the proposal was made based on its belief that exceptional housing and financial support is necessary for foreign victims who are legally staying in Korea and have established their livelihoods here through employment, family, and other ties. The province argues that the current system, which excludes victims of jeonse fraud from major support based on nationality, needs to be improved in light of the purpose of the Special Act on Support for Jeonse Fraud Victims and Housing Stability, which was introduced as a temporary measure to alleviate housing insecurity among victims.
Kim Tae-su, Director of Gyeonggi Province’s Housing Policy Division, stated, “We need to establish an institutional framework so that foreign victims of jeonse fraud who have established their lives in Korea can continue living safely in their affected homes and receive the financial support they need,” adding, “We will continue working closely with relevant agencies to ensure improvements at an institutional level.”