2024-07-19 00:16:21
List of 127 people revealed: 67 eligible for rental
“Only when the tenant wins… Needs to be expanded”
Fraud damage reaches 2.3 trillion won over 2 years
It was revealed that more than half of the ‘malicious landlords’ who habitually did not return the rental deposit and whose names were made public are still receiving tax benefits while maintaining their qualifications as rental business operators. There are opinions that the current standard of deregistering rental business operators should be expanded to only cases where the tenant wins a lawsuit for the return of the rental deposit.
According to data submitted by the Housing and Urban Guarantee Corporation (HUG) to the office of Moon Jin-seok, a member of the Democratic Party of Korea, on the 17th, 67 out of 127 people on the list of malicious landlords as of the 23rd of last month (52.8%) were still registered as rental business operators. Private rental housing operators can receive tax benefits such as property tax reductions, exclusion from the combined tax base when calculating comprehensive real estate tax, and special deductions for long-term rental housing holdings.
In particular, in Seoul, where many cases of rental fraud occurred, 25 out of 34 malicious landlords (73.5%) were registered as rental business operators. In addition, more than half of the malicious landlords in Gyeonggi (54.1%) and Incheon (52.9%) maintained their qualifications as rental business operators.
The amount that HUG returned on behalf of 67 malicious landlords who maintained their rental business licenses and did not return the deposits to tenants (subrogation amount) amounted to 712.4 billion won. This is about 10.6 billion won per person. The total number of subrogation cases was 3,298. This means that there are over 3,000 victims of jeonse fraud caused by 67 malicious landlords.
The reason why many malicious landlords are still enjoying tax benefits is because the criteria for deregistration are limited. The current law limits the reasons for deregistration to cases where the tenant wins a lawsuit for the return of the rental deposit or fails to return the deposit after the Housing Lease Dispute Mediation Committee has reached an agreement. As a result, since 2021, when the jeonse fraud incidents began, only 7 cases have had their rental business registrations deregistered due to non-return of the deposit.
Meanwhile, it was investigated that the amount of damage caused by jeonse fraud nationwide from July 25, 2022 to June 2, 2024 for approximately two years exceeded 2 trillion won. According to the data submitted by the National Police Agency to the office of Democratic Party lawmaker Park Jeong-hyeon, the amount of damage caused by jeonse fraud nationwide during the period was tallied at 2.2836 trillion won. This only counts cases that the police have forwarded to the prosecution, and if cases that are under investigation or have not been revealed are included, the amount of damage is expected to be much larger.
The government is acknowledging jeonse fraud by applying broad criteria, such as cases where many tenants are expected not to receive their deposits back or cases where there are circumstances where the landlord intentionally does not want to return the deposits, so that no victims are left in a blind spot for relief. The number of jeonse fraud cases counted by the government is 18,125 as of the 21st of last month. The amount is not being disclosed.
Reporter Oh Seung-jun [email protected]
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2024-07-19 00:16:21