Korea Buys Record Homes for Jeonse Fraud Victims, Q1 2026 Purchases Soar

The Korean government significantly ramped up its efforts to support victims of the widespread “Jeonse” rental fraud, announcing a record number of property purchases in the first quarter of 2026. The Ministry of Land, Infrastructure and Transport (MOLIT) reported that 995 homes from Jeonse fraud victims were acquired in March 2026 alone, marking the highest monthly total since the victim support program began.

This acceleration is part of ongoing measures to alleviate the plight of individuals affected by Jeonse scams. Jeonse is a unique Korean housing rental system where tenants pay a large, refundable lump-sum deposit (typically 50-80% of the property’s value) instead of monthly rent. Fraud occurs when landlords, often with multiple properties, abscond with these deposits or sell the properties at a reduced price, leaving tenants unable to reclaim their significant savings.

The “Jeonse Fraud Victim Act,” enacted on June 1, 2023, provides a legal framework for the government to intervene and support these victims. Since the law’s implementation, a cumulative total of 37,648 cases have been officially recognized and decided. The government’s purchase of these distressed properties is a crucial form of support, offering victims a pathway out of their financial and housing predicaments.

The increase in acquisitions reflects a strong push to expedite relief. In the first quarter of 2026, the government purchased an average of 884 Jeonse fraud-affected homes per month. This figure represents a sharp increase compared to the monthly average of 409 units purchased throughout 2025, demonstrating a significant scale-up in the government’s intervention.

While this particular notice focuses on the pace of property acquisitions, the broader government support includes various measures from temporary housing to legal aid for those affected by Jeonse fraud. The accelerated purchases aim to provide stability and a resolution for victims, helping them recover from substantial financial losses and secure new housing.

Source: 국토교통부 — Original Article (Korean)