The Housing and Urban Guarantee Corporation (HUG) has invested over 1.6 trillion won to acquire homes affected by jeonse guarantee incidents, but only 22.8% of these homes have been occupied.
According to data submitted by Representative Jeong Hee-yong of the People Power Party to the National Assembly's Land, Infrastructure and Transport Committee on October 15, HUG purchased a total of 8,174 Dundeun Jeonse Housing units from May 2024 to September 2026, with an acquisition cost of approximately 1.6253 trillion won. However, only 1,862 units have been occupied.
Dundeun Jeonse Housing is a program where HUG acquires homes that have been subject to jeonse guarantee incidents through auctions and rents them to non-homeowners at less than 90% of the market rate. Residents can stay for up to eight years without income or asset restrictions.
Among the purchased homes, 6,158 units (75.3%) have completed the eviction process, while 3,765 units (46.1%) have finished necessary repairs. The average time from acquisition to the announcement of tenant recruitment has increased from 133 days in 2024 to 410 days this year.
HUG explained that the initial rapid completion of evictions and the good condition of the homes contributed to the delays. The need to secure ownership and occupancy rights, as well as to undergo various procedures for repairs and maintenance, has also been cited as factors causing the delays.
As of the end of September this year, 6,312 homes remain unoccupied. Among these, 348 homes are waiting for re-announcement after failing to find tenants, and 278 homes have been vacant for more than six months.
Representative Jeong stated, "This project, initiated to recover losses from jeonse fraud, has only accumulated purchase results, while the actual homes available for citizens to live in are less than a quarter of the total purchased. We need to accurately identify and improve the bottlenecks in the eviction process, repairs, tenant recruitment, and contracts."
* This article has been translated by AI.
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