2023-11-28 05:00:32
“I dreamed of becoming an owner. I didn’t borrow. I put all my savings into this project. » Ahn Sang-mi lost everything, thanks to jeonse scammers, this system of access to housing typical of South Korea, which sees a tenant pay an owner a deposit of up to 80% of the value of a property to occupy it, generally two years. Eventually, he gets the money back, if of course the owner hasn’t disappeared with it.
Thousands of people have been victims of these treachery since the start of the year. Demonstrations follow one another, the last having taken place on October 14. Very mobilized on the issue, the democratic opposition tabled eight bills on Friday November 24 for better protection of tenants or to facilitate the seizure of assets of unscrupulous owners. These initiatives are multiplying while the conservative government struggles to respond to a rapidly exploding phenomenon.
In 2020, Mme Ahn finds an apartment in a small new building in Chemulpo, the historic port district of Incheon (west of Seoul). “I signed my first lease for 72,000,000 won [51 000 euros]. In February 2022, I renewed the contract for 75,000,000 won. At the end of June this year, I received a letter from the court saying that the building had been seized due to the owner’s debts and put up for auction. » Other residents of the building are in the same situation. “We were shocked. The lawyers said there was nothing we could do. The owner had used the money. Even if we win in court, there will be no reimbursement. »
Often young victims
Like Mme Ahn, 4,481 people were victims of these embezzlements between January and July, compared to 622 for the whole of 2022. The total damage is 510.5 billion won, according to data from the police, who apprehended 2,582 suspects , but was only able to recover 22.6% of the damage suffered.
54.4% of victims were under 30 years old. Three of them committed suicide. Others have thought about it, like this 21-year-old young man who prefers to remain anonymous. He had accessed housing in Hwaseong, in Gyeonggi province, neighboring Seoul, thanks to a loan program for young entrepreneurs. “I felt like my life was over. I had a debt of 90 million won. I considered jumping into the Han River. »
The explosion in the number of cases is due to the fall in real estate prices and the rise in interest rates, from 0.5% in July 2021 to 3.5% in January 2023. “Between 2020 and 2022, people took advantage of very low rates to massively purchase apartments. Banks lent easily and buyers supplemented with jeonse money.recalls Park Joo-min, democratic opposition MP, very engaged on this issue.
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