The Ministry of Land, Infrastructure and Transport said on the 7th that a government panel reviewed 1,798 cases in August and approved 658 of them as victims of jeonse fraud, a scheme in which landlords fail to return the large lump-sum deposits tenants pay instead of monthly rent.
Of the 658 approved cases, 627 were new applications, including resubmissions, while 31 were appeals against earlier decisions. The panel said the 31 appeal cases were found to meet the requirements under Article 3 of the Jeonse Fraud Victim Support Act upon further review.
Among the remaining 1,140 cases, 626 were rejected for failing to meet the requirements, and 239 were excluded because the applicants could recover their full deposits through guarantee insurance or priority repayment claims. Another 275 appeal cases were dismissed after the panel determined the requirements were still unmet.
The panel has recognized a cumulative 40,936 cases as jeonse fraud victims and has issued 1,225 requests for the temporary suspension of urgent auctions. A total of 77,805 support measures covering housing, financing and legal procedures have been provided to those recognized.
Tenants who are denied recognition, or who are classified under Article 2, Paragraph 4, Items B and C of the act, may file an appeal under Article 15. Even if an appeal is dismissed, they may reapply and win recognition later if their circumstances change.
Korea Land & Housing Corporation had purchased 10,718 homes affected by jeonse fraud as of the 31st of last month, averaging 716 purchases a month so far in 2026.
The ministry and LH are running review meetings and a fast-track process to speed up those purchases, and plan to continue consultations with district courts on moving auctions forward to support housing stability.
Tenants hit by jeonse fraud can apply for victim status with the metropolitan or provincial government where they live. Those recognized by the panel can receive detailed guidance on support programs through jeonse damage and prevention support centers nationwide, in person or by phone, and at branch offices in person.
The ministry and Korea Housing & Urban Guarantee Corporation are also running a safe-contract consulting program at eight jeonse damage and prevention support centers across the country, allowing prospective tenants to check property rights and contract risks before signing.
