Government Moves to Buy 1,000 Jeonse Fraud Homes

On July 3rd, the Ministry of Land, Infrastructure and Transport (MOLIT) officially announced the purchase of 1,000 homes involved in jeonse (lease) fraud.
Watching the news, I finally felt like things were starting to improve.
Having heard so many heartbreaking stories from victims, this number didn’t feel like just a statistic.

Recently, policies to support jeonse fraud victims have begun to take clearer shape.
In particular, the LH Corporation's plan to purchase affected homes and allow victims to move back in provides a real chance for recovery.

 

 

Government Has Already Bought 1,000 Jeonse Fraud Homes
According to MOLIT, 1,002 homes have been purchased, with 343 of them ready for occupancy.
There were 2,162 applications, showing just how badly this support was needed.

The term "public purchase," once distant, is now a second chance for people who lost their homes.

Why Is Jeonse Fraud So Common?

“Kangtong Jeonse” (Empty-Can Lease): A lease where the deposit is higher than the home's value. If the landlord goes bankrupt or the home is auctioned, tenants can't recover their deposit.

Fake Registrations & Double Contracts: Signing contracts with homes already mortgaged or registered under a different name.

 

To prevent this:
✅ Always check the registry,
✅ Verify the landlord’s identity,
✅ Ensure return guarantee insurance eligibility.
But in reality, many people overlook these steps.

 

How Is the Government Responding?

Public purchase & re-rental by LH

Temporary housing support for 6–24 months until purchase is completed

System reform, including:

Disclosing malicious landlords

Punishing negligent real estate agents

Making insurance mandatory

Of these, public purchase is the most immediate and practical support for victims.

 

How Can We Prevent It?
Here’s a checklist I now follow before any jeonse contract:

Check registry for mortgages or liens

Confirm landlord identity

Ask if return guarantee insurance is available

Include special clauses in the contract (e.g., refund in case of auction)

Check agent license number

You Are the First Line of Defense
The government’s actions bring hope, but the first person to protect your deposit is you.
If you’re about to sign a jeonse contract, I hope this post helps you sleep a little better.