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South Korea Ministry Partners with Banks to Aid Jeonse Fraud Victims
🇰🇷 South Korea /Crime & Justice

South Korea Ministry Partners with Banks to Aid Jeonse Fraud Victims

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • South Korea's Ministry of Land, Infrastructure and Transport has partnered with KB Kookmin Bank and the Korea Housing & Urban Guarantee Corporation (HUG) to support victims of 'jeonse' fraud.
  • The agreement aims to establish a close cooperation system to resolve issues related to jeonse scams, a type of housing fraud prevalent in South Korea.
  • The collaboration will provide expanded support for victims and measures to prevent future fraudulent activities in the rental housing market.

South Korea's Ministry of Land, Infrastructure and Transport is joining forces with financial institutions and public housing corporations to tackle the growing problem of 'jeonse' fraud. A memorandum of understanding was signed to create a robust support system for victims and implement preventative measures.

Jeonse, a unique South Korean housing rental system where tenants pay a large lump sum deposit instead of monthly rent, has become a target for fraudsters. Victims often lose their entire life savings when landlords default on returning the deposits.

The partnership between the ministry, KB Kookmin Bank, and HUG signifies a concerted effort to address the financial and emotional distress caused by these scams. The initiative aims to provide victims with much-needed assistance and bolster confidence in the rental market.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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