Case Type: Lease Deposit, Real Estate Foreclosure

Result: Full Victory, Execution Completed

Case Details:

Suhn Law Group advised a client severely affected by a Jeonse (long-term lease) fraud to participate directly in the foreclosure process as a bidder, enabling the practical recovery of their deposit. This approach provided the optimal solution for a Jeonse fraud victim to both secure their claim and maintain housing stability.

The client, in their late 20s and a recent entrant to the workforce, had fully paid the Jeonse deposit by combining a large bank loan with their personal savings, relying on the landlord’s promise to subscribe to a deposit return guarantee insurance. The landlord subsequently disappeared, leaving the client in a state of shock and financial distress.

While obtaining a full judgment in a lawsuit against the landlord to recover the deposit was not difficult, the challenge lay in the landlord’s repeated and organized Jeonse fraud activities. The landlord owned multiple under-collateralized properties (“empty housing”) and lacked the means to repay, leaving no straightforward way to recover the deposit.

Suhn Law Group represented the client in directly participating in the foreclosure process, offsetting the foreclosure proceeds against the deposit. During this process, the client was officially recognized as a Jeonse fraud victim by the Ministry of Land, Infrastructure and Transport. The firm actively leveraged support measures under the Special Act on Support for Jeonse Fraud Victims and Housing Stability, including proportional application of national and local taxes, to minimize the tax burden on the foreclosed property.

Jeonse fraud victims often suffer significant economic and psychological hardship. For young adults just starting their careers, investing nearly all their assets and available loans into a Jeonse makes the impact of fraud particularly severe. This case serves as a model example of simultaneously protecting the rights of the victim and ensuring housing stability. Suhn Law Group will continue to provide practical and effective legal solutions for Jeonse fraud victims.

Case Inquiries: Attorney May H. Kim