Given that countless victims were on the verge of losing their deposits, which were tantamount to their entire assets, the passage of this bill is highly significant in establishing a minimum safety net. Nevertheless, we must not overlook the fact that blind spots and limitations still exist. It is crucial to carefully examine how effective this special act amendment can be as a relief measure and what challenges remain.

Minimum Deposit Guarantee System: What Has Changed?

One of the core aspects of this amendment is the introduction of the minimum deposit guarantee system. Previously, even if a Jeonse fraud property went to auction, victims often received almost none of their deposit back due to senior creditors. However, now, regardless of the auction outcome, the state will be responsible for at least one-third of the deposit. For example, if a victim who lost a 300 million won deposit recovers nothing from the auction, the state will provide 100 million won. If 50 million won is recovered from the auction, the state will additionally compensate the remaining 50 million won.

This serves as a social safety net, helping victims secure minimum living expenses and get back on their feet. Furthermore, the threshold for being recognized as a victim has been lowered. The deposit limit, which was previously 500 million won, has been raised to 700 million won, bringing a significant number of Jeonse victims in the Seoul metropolitan area under the legal framework. Key changes are as follows:

• The state guarantees at least one-third of the deposit (regardless of auction results)
• The recognized deposit limit for victims increased from 500 million won to 700 million won
• Attachment and provision of collateral for victim support funds are completely prohibited
• Public rental housing support is available even if the victim’s house cannot be purchased

‘Pre-payment, Post-settlement’ System for Victims of Trust Fraud

Among the various types of Jeonse fraud, trust fraud was the most complex and difficult to remedy. This method involves the landlord transferring ownership to a trust company and then deceiving tenants into signing contracts. Legally, tenants’ status was not properly recognized, making it difficult for them to participate in auction procedures. It would be accurate to say that there were virtually no remedies for them.

This amendment brings hope to victims of ‘unauthorized contracts,’ including trust fraud. It introduces a ‘pre-payment, post-settlement’ system where the state pays all or part of the minimum guaranteed amount before the auction/public sale, and then settles after the auction/public sale concludes. This means that victims do not have to endure complex legal disputes, which could take years, entirely on their own. Considering the suffering experienced by victims of trust fraud, this system is expected to provide not only financial assistance but also psychological stability. The advantages that victims of trust fraud will gain from the introduction of this system are clear:

• Pre-payment of the minimum guaranteed amount from the state before auction/public sale
• Reduced burden of complex legal disputes
• Expected resolution of issues regarding non-recognition of tenant status

Lingering Shadows: Policy Loans and Unreturned Social Housing Deposits

It is clear that this special act amendment has made significant progress in remedying Jeonse fraud. However, challenges and blind spots still remain. In particular, loopholes in the policy loan review system are still pointed out as a trigger for Jeonse fraud. According to a survey by the Korea Research Institute for Human Settlements, 77.8% of victims who secured their Jeonse deposit with a loan used policy loans such as the ‘Butimok’ loan. However, there is criticism that the Jeonse fraud risk assessment for these policy loans was often not properly conducted. This is a paradoxical situation where loans intended for ordinary citizens and young people are instead exposed to fraud risks.

Furthermore, recently, incidents of unreturned deposits have occurred even in ‘social housing,’ which are rental homes created with public support, causing shock. Young people who moved in trusting SH Corporation’s announcements found themselves unable to get their deposits back. The problem is pointed out as insufficient safety measures against private operational risks, despite public funds being invested. Given these circumstances, it is natural that the anxiety one wishes to ‘freeze-dry’ does not disappear. Problems that are difficult to solve with the amendment alone include:

• Need to strengthen Jeonse fraud risk assessment for policy loans
• Reinforcement of deposit safety measures for public-interest rental housing such as social housing
• Demand for fundamental system improvements to prevent fraud

The 2026 Jeonse Fraud Special Act amendment is undoubtedly an important step that will bring a ray of hope to victims of Jeonse fraud. However, continuous efforts are needed to supplement issues outside the legal framework and existing loopholes. Society as a whole must continue to show interest and make efforts to wipe away the tears of victims and ensure that no one else despairs over their deposits.

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Especially since the beginning of 2026, there have been reports from various sources that LH is working very hard for the housing stability and better lives of the people. Personally, I was curious about how these changes would affect our lives, so I looked into them in detail.

LH Activates ‘Double Safety Net’ for Construction Site Safety!

Among the recent news from LH, the most notable is the focus on safety enhancement. In fact, until recently, there were many people worried as construction site safety issues continued to emerge.

But now, LH has stepped up to establish a ‘double safety net’ where both the client and the contractor are responsible. Especially since April 1st, ‘Safety Monitoring Groups’ have been fully deployed to 25 high-risk construction sites to manage safety more thoroughly. I think these efforts will greatly help reduce on-site accidents.

• Deployment of Safety Monitoring Groups: Permanent personnel dispatched to 25 high-risk construction sites nationwide
• Establishment of Double Safety Net: Enhanced safety responsibility for both clients and contractors
• Introduction of AI-based System: Expected to improve work efficiency and safety

LH to ‘Directly’ Supply Housing in the Seoul Metropolitan Area?!

Many people are stressed about housing prices these days, aren’t they? It seems even worse in the Seoul metropolitan area. In this situation, Korea Land and Housing Corporation is attempting radical changes to accelerate housing supply.

The biggest change is the ‘LH Direct Implementation’ method. In the past, land was often sold to private construction companies, but now LH will directly undertake housing construction to secure supply and speed up projects. Furthermore, they plan to expand public rental housing with larger floor plans for the middle class and supply it in good locations like subway stations, which is truly exciting.

• Transition to ‘LH Direct Implementation’: Increased supply and speed through direct housing construction instead of private sales
• Expansion of Middle-Class Public Rental Housing: Promotion of larger floor plans and supply in good locations like subway stations
• Resumption of Non-Residential Remodeling: Conversion of vacant commercial spaces and offices into rental housing for supply

From 3rd Generation New Towns to 1st Generation New Towns, LH’s Urban Development Status!

One of LH’s representative roles is new town development. Currently, 3rd generation new towns like Namyangju Wangsuk, Hanam Gyosan, Incheon Gyeyang, Goyang Changneung, and Bucheon Daejang are actively being developed. Especially with the completion of the Alpha Ammunition Depot relocation within Pyeongtaek Godeok District, it’s welcome news that 15,000 housing units can now be supplied in this area alone.

But what’s surprising is that it’s not just about 3rd generation new towns. LH is also actively involved in the redevelopment of aging 1st generation new towns. News has also emerged that LH has been designated as the project implementer for the Gunpo Sanbon New Town 9-2 district as a pilot zone under the ‘Special Act on the Renovation and Support of Aged Planned Cities’. It’s truly commendable that old cities can regain vitality, and I personally applaud this effort.

Today, I’ve reviewed the latest news from Korea Land and Housing Corporation. I learned that they are making efforts in various ways for the housing stability of the people. Of course, there are painful memories from the past, but I sincerely hope that through these changes and efforts, they will once again become a trusted public enterprise. I hope LH continues to play a good role for all our better lives!

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