The Korea Herald

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[Legal updates in Korea] Providing housing for 'jeonse' fraud victims

By Jung Min-kyung

Published : Nov. 25, 2024 - 15:45

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(Ministry of Government Legislation) (Ministry of Government Legislation)

● Updated law: The Special Act on Supporting Jeonse Fraud Victims and Housing Stability

What it does: Allows "jeonse" fraud victims to live in public housing without paying rent for 10 years

Took effect: Nov. 11

Punishment: None

"Jeonse" is a unique Korean system in which renters give landlords a large returnable deposit instead of paying monthly rent. The system has existed for decades, but in recent years, scammers have taken advantage of the system, refusing to return the deposits -- typically a tenant's life savings -- at the end of the lease.

The accumulated number of victims of jeonse fraud totaled 24,668, according to government data released Nov. 22. The majority of the victims or 74.36 percent were aged under 40.

To help the victims, public housing providers may purchase housing that was involved in jeonse fraud cases in auctions and turn it into public housing for the victims. The victims will be able to live in these homes for 10 years without paying rent, and any profits from auctions will be used to cover rental expenses.

The government will bear the cost associated with purchasing the housing, as well as any rental shortfalls that remain after using auction profits for rent. After 10 years of residence, victims can either extend their stay for up to another 10 years at a rent lower than the market rate or receive the remaining amount after deducting the rental support from the auction profits.

Improving hygiene of vending machine foods

● Updated law: Enforcement Decree of the Food Sanitation Act

What it does: Improves hygiene of foods sold in vending machines by expanding the scope of the law

Took effect: Nov. 15

Punishment: None

From now on, the scope of the food vending machine business will be expanded to include the sale of food products that undergo automatic mixing and processing inside the vending machines to strengthen hygiene management. Previously, the food vending machine business was defined as selling only finished products. However, with the increasing variety of food vending machines with various functions, such as those for robot coffee, meal kits, and cotton candy, it is necessary to strengthen the hygiene management of these vending machines as well, which has prompted the revision of the regulation.

-- In collaboration with the Ministry of Government Legislation, The Korea Herald publishes a monthly article on laws that have recently been updated in South Korea. The ministry’s Easy Law service (https://www.easylaw.go.kr/CSM/Main.laf) provides accessible summaries of Korean laws grouped by category in English and 11 other languages: Arabic, Bengali, Cambodian, Simplified Chinese, Indonesian, Japanese, Mongolian, Nepali, Thai, Uzbek and Vietnamese -- Ed.