Jeonse Fraud Victims to Recover at Least One-Third of Deposit with State Support

Here is the final news update.

The government is stepping in to guarantee support for Jeonse fraud victims.

Starting next month, victims of Jeonse fraud will be guaranteed to recover at least one-third of their deposit.

The government has approved an amendment to the enforcement decree of the special act for supporting Jeonse fraud victims.

Beginning November 13, if the amount recovered after an auction or public sale falls short of one-third of the deposit, the state will cover the difference.

Let us look at an example.

If the deposit is 150 million won, the minimum guaranteed amount would be one-third, which is 50 million won.

If 30 million won was recovered through auction distribution and auction margins, the remaining shortfall of 20 million won would be supported by the state.

Korea Land and Housing Corporation (LH) will handle this support task, and a decision on whether to pay and the final amount will be made within 90 days of application.

That concludes this news update.

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