Revised Law on Jeonse Scams, Guaranteeing Minimum Deposit Return, Passes Subcommittee

A crucial amendment to the special law on "Jeonse" scams has cleared a significant hurdle, passing the subcommittee review of the National Assembly's Land, Infrastructure, and Transport Committee. This revised legislation aims to provide much-needed relief to victims who have lost their "Jeonse" deposits due to fraudulent schemes.

The core of the amendment introduces a "minimum guarantee system," where the state will cover at least one-third of the "Jeonse" deposit for victims unable to recoup their losses through auction or public sale processes. While the initial proposal suggested a 50% guarantee, the subcommittee agreed to lower it to one-third after deliberation, a move that still offers a substantial safety net for those affected.

Furthermore, the revised bill incorporates a "pre-payment system." This provision is designed to offer immediate financial assistance to victims of unauthorized contracts, such as those involving trust fraud, by providing them with a portion or the full amount of the guaranteed deposit before the auction concludes. The state will then settle the accounts after the auction is finalized. The bill is now set to proceed to a full committee meeting for final approval, bringing a glimmer of hope to countless "Jeonse" scam victims.