South Korea Jeonse fraud victim support

The South Korean government has implemented legislative and administrative measures to address Jeonse lease deposit fraud. An amendment to the Special Act on Support for Jeonse Fraud Victims and Housing Stability introduces a ‘minimum guarantee system’ designed to ensure victims recover at least one-third of their deposits if auction or public sale proceeds fall short. This system, managed by the Korea Land and Housing Corporation (LH), includes a ‘pre-payment and post-settlement’ mechanism for trust-related fraud victims, supported by an 84 billion won allocation.

As of September 2026, the Ministry of Land, Infrastructure and Transport reported that 623 additional cases were recognized, bringing the cumulative total of victims since June 2023 to 41,559. Statistics indicate that 75.89% of recognized victims are under age 40, with those in their 30s representing over 50% of the total. Most affected properties are multi-family houses, officetels, or multi-household houses with deposits under 300 million won, particularly within the Seoul metropolitan area.

To facilitate housing stability, LH has purchased 11,148 homes affected by fraud. Through a fast-track system, LH utilizes priority purchase rights in auctions, enabling victims to remain in their homes for up to 10 years by converting auction profits into rental deposits.