Gyeonggi Province Proposes Government Support for Foreign Jeonse Fraud Victims

Gyeonggi Province announced on the 9th that it has proposed to the Ministry of Land, Infrastructure and Transport amendments to related laws and guidelines, including the 'Special Act on Support for Jeonse Fraud Victims and Residential Stability,' to enable foreign nationals legally residing in Korea who are jeonse fraud victims to receive government support.

The province requested that the Korea Land and Housing Corporation (LH) purchase the affected properties of foreign victims and utilize them for emergency housing support, allowing victims to continue residing in their existing homes. It also proposed that foreign victims be included as beneficiaries of financial support to access low-interest jeonse loan programs utilizing the Housing and Urban Fund and refinancing loans to replace existing jeonse loans.

The current system does not exclude foreigners in the process of determining jeonse fraud victims. However, even if determined as victims, foreigners are excluded from major support beneficiaries including provision of public rental housing and financial support utilizing the Housing and Urban Fund.

Consequently, foreign victims cannot continue residing in their affected properties even when they wish to do so due to employment or children's education. Even when they need jeonse funds or refinancing money, they face difficulties accessing low-interest policy loans from the Housing and Urban Fund.

Gyeonggi Province determined that exceptional housing and financial support is necessary for foreign victims who legally reside in Korea and have established livelihoods including employment and family. Considering the purpose of the 'Jeonse Fraud Victims Act,' which is implemented temporarily to resolve residential instability for jeonse fraud victims, the province believes there is a need to improve the current system that excludes foreigners from major support based on nationality.

Kim Tae-su, Director of the Housing Policy Division of Gyeonggi Province, said, "It is necessary to establish an institutional foundation so that foreign jeonse fraud victims with livelihoods in Korea can reside stably in their affected properties and receive necessary financial support." He added, "We will continue to make efforts through close consultation with relevant agencies to achieve institutional improvements."