Ministry of Land Cancels Announcement on Rent Fraud Support Plan: Opposition Party Pushes “Preemptive Penalty System” for Jeonse Fraud Victims

The Ministry of Lands, Infrastructure and Transport was due to announce a plan to strengthen housing support for victims of rent fraud on the 13th, but canceled it suddenly on the evening of the 12th, a day before. While it is becoming more likely that the Democratic Party of Korea will pass the amendment to the Special Act on Jeonse Fraud, which includes the ‘repentance of the previous system’ plan, at the full session of the Senate National on the 28th, the ruling party says. ‘that the government’s presentation of a new aid plan could lead to a political dispute between the governing parties and the opposition parties.’ The Ministry of Land, Infrastructure and Transport originally planned for Minister Park Sang-woo to personally announce a plan to support victims of charter fraud. It is very unusual for a pastor to attend a meeting in person only to suddenly cancel it the day before.

Minister of Land, Park Infrastructure and Transport Sang-woo (second from left holding microphone) holds a tea meeting with reporters at the Sejong Government Center on the evening of the 13th./Ministry of Land, Bun -structure and transport

The ‘preemptive penalty system’ plan that the opposition party is promoting is to support victims by first buying tenants’ deposit refund bonds, paying them off, and then getting cash back through the right to salvation. This bill passed a full session of the National Assembly’s Lands, Infrastructure and Transport Committee last December and was moved to the Legislative and Judiciary Committee, but no agreement was reached due to opposition from the government and the ruling party. The opposition party independently brought the bill to the plenary session last February and they plan to pass it through a vote on the 28th.

Minister of Land, Park Infrastructure and Transport Sang-woo said at a tea meeting with reporters held at the Sejong Government Center on the evening of the 13th, “The opposition party says they will use the Housing and Urban Fund as a financial resource to provide relief. to victims of rental fraud “It is money that has been given to us for a period of time,” he said “If we use this money to support the victims of rental fraud, the loss, which is expected to be higher than 1 trillion won, given. to other citizens. “As the Minister of State in charge of the Housing and Urban Fund, it is difficult for me to agree easily,” he said.

He continued, “What is really needed for the victims is for Korea Land and Housing Corporation (LH), etc. to buy the houses where the accident happened through auctions, turn them into housing public rent, and provide a sustainable living environment. for the victims. Minister Park said, “Under current law it is entirely possible for a public body like LH to participate in an auction to acquire housing and convert it into public rental housing. He said, “Instead of holding a wasteful debate about the revision of the special law on rental fraud, it is right to help the victims of rental fraud quickly through the current law.”

Regarding the announcement of a plan to support victims of rent fraud that the government had prepared to cancel, “(in a situation where the ruling and opposition parties are deadlocked), it would be a burden for the government to come up quickly with her plan, so there was an opinion from the ruling party that “it would be better to do it more carefully.” “We accepted,” he said, adding, “How to compensate for the damage from the lease fraud will be determined by national debate and consensus in the future.”

On this day, Minister Park said, “According to the recent high interest rate conditions, we are carefully investigating low interest loans only for jeonse fraud victims to reduce the interest burden, and with that preventing jeonse fraud is more important. , we are considering greatly expanding the provision of information about landlords, etc. to tenants “I will do it,” he said.

Minister Park Sang-woo also expressed his opinion that it is desirable to abolish the two rent laws (right to request contract renewal and monthly rent cap system) introduced during the Moon Jae-in administration. In response to the recent sharp increase in rental prices, especially in the metropolitan area, the government plans to present a plan to provide housing and stabilize rental prices next week.