“New Special Law Proposal to Support Victims of Charter Fraud and Lessor’s Arrears Auctions”

2023-04-27 17:34:27

Ministry of Land, Transport and Maritime Affairs, proposes a special law applying for a two-year period
Auctions blocked by ‘lessor’s arrears’ are also possible

On the 27th, the government proposed a special law to temporarily apply for two years to support victims of charter fraud. If you are recognized as a victim of charter fraud, you can win the bid for the house you lived in through the right to purchase at auction, and you can get a low-interest loan of up to 400 million won in meridian funds. If you are reluctant to buy a house, the public buys it instead and rents it at a low price.

Minister of Land, Infrastructure and Transport Won Hee-ryong emphasized the necessity of enacting a special law, saying, “Prevention measures are highly established, but there are insufficient parts in the support system for victims who have already been auctioned off or evicted.” The period of application of the special law is two years after its enforcement. It was taken into account that the lease contract period is usually two years.

Targets of support for the special law are ▲lessees who have resistance and received a fixed date ▲auction or public sale of rental housing (including executive authority) ▲rented housing for common people considering area and deposit ▲existence of intention to commit charter fraud such as investigation commencement ▲concerns about the occurrence of multiple victims ▲ There are 6 concerns, including concerns about non-return of the amount equivalent to the deposit. All of these must be met to be recognized as a victim of charter fraud.

The special law also includes a plan for the distribution of tax claims (right to collect tax). This is a plan to legislate the entire tax arrears to be divided evenly among the houses owned by the lessor to enter the auction and public auction procedures in order to prevent a situation where the auction and public auction do not proceed due to the large amount of tax arrears by the landlord.

Damaged tenants who have already completed auctions and public auctions are also recognized as victims of charter fraud. Tenants who have completed auctions and public auctions within two years immediately before the enforcement of the Special Act and who meet all the requirements for victim recognition under the Special Act at the time of completion are eligible. They are provided with preferential opportunities to move into public leases and financial support when purchasing other houses.

Reporter Ok Seong-gu, Sejong

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