The minimum compensation program for jeonse fraud victims does not automatically pay an additional amount equal to one-third of the rental deposit. Instead, it covers the shortfall after deducting amounts already recovered through auction distributions, landlord repayments, LH assistance, and other recognized forms of recovery. Online pre-applications open on November 10, 2026, while the program officially takes effect and in-person applications begin on November 13.
For example, if your deposit was KRW 150 million, the minimum recovery target would be KRW 50 million. If you have already recovered KRW 30 million, the potential additional support would be KRW 20 million. However, the application timing differs between general fraud victims and victims of unauthorized contracts, including trust fraud cases.
What Does the One-Third Minimum Compensation Threshold Actually Mean?
One-third of the rental deposit is the minimum recovery threshold established by the South Korean government. If the amount a victim has already recovered falls below this threshold, the difference may be paid as minimum compensation.
The important distinction is that one-third is neither a reimbursement rate applied to every deposit nor a fixed payment automatically given to every victim.
For example, if your rental deposit was KRW 120 million, the minimum recovery target would be KRW 40 million. If you have recovered KRW 25 million through an auction distribution and repayments from the landlord, the remaining shortfall would be KRW 15 million.
Conversely, if you have already recovered KRW 40 million or more, no additional payment is due under the minimum compensation threshold.
Who Is Eligible to Apply for Minimum Compensation?
The primary eligible group consists of tenants officially recognized as jeonse fraud victims under South Korea’s *Special Act on Support for Victims of Jeonse Fraud and Residential Stability*. However, receiving an official victim designation does not automatically guarantee payment. The amount already recovered must also be less than one-third of the rental deposit.
Tenants covered by Article 2, Subparagraph 4(c) of the Special Act, who fall under a separately defined support category, are also eligible. This category includes tenants recognized as victims or persons eligible for protection who meet requirements such as:
A rental deposit of KRW 500 million or less.
Confirmation that the landlord failed to fulfill the obligation to return the deposit with the intention of not repaying it.
Compliance with requirements such as resident registration and a fixed date (*hwakjeong-ilja*) on the lease.
It is therefore important to distinguish among three separate conditions:
Whether you have an official jeonse fraud victim determination notice.
Whether you qualify under the applicable legal support provisions.
Whether the amount you have already recovered or received in assistance is below the minimum compensation threshold.
If you have not yet received an official victim determination, you should first check the victim recognition process before applying for minimum compensation.
How Are Previous Auction Proceeds and Support Payments Deducted?
Minimum compensation is calculated by subtracting recognized recovery amounts from one-third of the rental deposit. The calculation does not consider auction distributions alone. Other forms of financial recovery are also included.
The amounts deducted include:
Proceeds received through court auctions or public auctions.
Money repaid or recovered from the landlord or other responsible parties.
Auction profit assistance provided through LH’s purchase of a property affected by jeonse fraud.
Government-funded rental assistance.
Example of a Minimum Compensation Calculation
Assume a rental deposit of KRW 150 million.
Minimum recovery target, equivalent to one-third of the deposit: KRW 50 million.
| Item | Amount |
|---|---|
| Auction distribution | KRW 20 million |
| Auction profit assistance | KRW 10 million |
| Total amount already recovered | KRW 30 million |
| Additional minimum compensation | KRW 20 million |
| Final recovery amount | KRW 50 million |
Calculation: KRW 50 million − KRW 30 million = KRW 20 million.
Even when two victims have identical rental deposits, their additional support payments can differ depending on how much they have already recovered.
For example, consider two victims, each with a rental deposit of KRW 150 million.
Victim A: Previously recovered KRW 10 million → Additional support of KRW 40 million.
Victim B: Previously recovered KRW 40 million → Additional support of KRW 10 million.
Although both victims paid the same deposit, their potential support payments differ by KRW 30 million.
One important point is to distinguish the amounts listed in an auction distribution schedule from the amounts actually recognized as recovered compensation. You should also check repayments received from the landlord and records of previous financial assistance. Preparing supporting documentation for these amounts is advisable.
Can Trust Fraud Victims Receive Payment Before the Auction Is Completed?
Victims of unauthorized contracts, including trust fraud victims, can use a separate advance payment and subsequent reconciliation program rather than waiting for the standard minimum compensation process.
An unauthorized contract refers to a lease agreement made with someone who did not have the legal authority to lease the property. Trust fraud is a representative example.
Under the standard minimum compensation program, applications generally become available after the disposal process for the affected property has been completed or LH has finished calculating the auction profit. The key difference is that advance payments can be requested before court or public auction proceedings have concluded.
Standard Minimum Compensation
1. Court auction or public auction proceedings for the affected property take place.
2. For properties purchased by LH, the auction profit calculation is completed. For other properties, the disposal process must be completed.
3. Previously recovered compensation amounts are verified.
4. The applicant requests payment of the remaining shortfall.
Advance Payments for Unauthorized Contract Victims, Including Trust Fraud Victims
1. Confirm whether the applicant qualifies as a victim of an unauthorized contract.
2. Check previous repayments and rental assistance payments.
3. Apply for an advance payment before the court or public auction proceedings are completed.
4. Reconcile the payment if additional recovery amounts are received later.
Advance payments are also calculated using one-third of the rental deposit as the reference threshold. However, their deduction rules are not completely identical to those of standard minimum compensation.
Amounts already recovered through claims for the return of the rental deposit, along with government-funded rental assistance received before the advance payment, are taken into account. If additional money is subsequently recovered through an auction distribution or repayment of the deposit, the payment is recalculated.
For example, suppose a victim of an unauthorized contract has a rental deposit of KRW 150 million and has received KRW 10 million in government-funded rental assistance before applying for an advance payment. Assuming there are no other deductible amounts, the advance payment would be KRW 40 million.
Because the program is designed to bring the victim's total recovery up to the minimum compensation threshold, any additional recovery after receiving an advance payment must be reported and reconciled.
Where Can You Apply on November 10, and What Documents Are Required?
Online applications will be available through LH Cheongyak Plus starting November 10. In-person applications will be accepted at LH regional headquarters beginning November 13, the official implementation date of the program.
Application Schedule
| Application type | Location | Method |
|---|---|---|
| Online pre-application | LH Cheongyak Plus | Online submission |
| Program launch and in-person applications | LH regional headquarters | In-person submission |
Online application website:
LH Cheongyak Plus
Inquiries: LH Customer Service Center, 1600-1004.
Prepare the following documents when applying:
Official jeonse fraud victim determination notice.
Copy of the lease agreement.
Copy of the resident registration record (*jumin deungnokpyo chobon*).
Auction distribution schedule or public auction distribution calculation statement.
Supporting documents related to repayment of the rental deposit return claim.
The documents required may vary depending on the application category and individual circumstances. Victims of unauthorized contracts, including trust fraud victims, should also prepare documents confirming the legal authority of the person who entered into the lease agreement. Additional documents, such as the trust register (*sintak wonbu*), may therefore be necessary.
When Will You Know Whether Your Application Has Been Approved?
LH reviews the application documents and determines whether the applicant qualifies and how much compensation should be paid.
The following time limits apply to the decision process:
| Procedure | Time limit |
|---|---|
| Standard review and decision | Within 90 days of application |
| Extension when additional documentation or other circumstances require it | One extension of up to 30 days |
| Appeal against the decision | Within 30 days of receiving notification |
If you disagree with the approved payment amount or the determination of your eligibility, check the date of the decision notice. You may file an objection with LH within 30 days of receiving notification.
Another important consideration is what happens after you receive compensation. If you subsequently recover additional rental deposit money through repayment by the landlord or an auction distribution, and this creates an obligation to return part of the support payment, you must report the additional recovery and repay the required amount. Failure to fulfill the repayment obligation may result in an administrative fine of up to KRW 30 million, depending on the number of violations.
How Should You Determine Which Application Process Applies to Your Situation?
The actual application date depends on the disposal status of the affected property and the type of fraud involved.
| Current situation | Application process to check |
|---|---|
| LH is in the process of purchasing the affected property | Apply for minimum compensation after the auction profit calculation is completed |
| General fraud victim who has not requested an LH purchase | Apply for minimum compensation after the disposal process, including court or public auction proceedings, is completed |
| Victim of trust fraud or another unauthorized contract | Apply for an advance payment before the disposal proceedings are completed |
| No official victim determination notice | Check the victim determination process first |
| Already recovered one-third or more of the rental deposit | Not eligible for additional payment under the minimum compensation threshold |
In particular, trust fraud victims do not necessarily need to wait until the auction is completed, as general victims usually must. A separate advance payment program is available for qualifying unauthorized contract victims.
Checking your official victim classification and previous recovery amounts before applying will make it easier to determine which procedure applies to your case.
Frequently Asked Questions
Q. Does every victim receive a payment equal to one-third of the rental deposit?
No. The program calculates the shortfall needed to bring the victim's total recovery, including amounts already recovered, up to one-third of the rental deposit.
Q. Can I apply even if I have received nothing from an auction distribution?
If you meet the eligibility requirements and have not recovered any other compensation, you may be able to apply for minimum compensation. However, standard minimum compensation generally requires the disposal process, including court or public auction proceedings, to be completed first.
Q. Will my compensation be reduced if I have already received rental assistance?
Yes. Government-funded rental assistance is included in the calculation of recovered compensation and is deducted when determining the minimum compensation payment.
Q. How much can trust fraud victims receive in advance?
The calculation is based on one-third of the rental deposit, taking into account amounts already repaid and government-funded rental assistance received before the advance payment. Any additional recovery received later must be reconciled.
Q. Does it take 90 days for the money to be paid after I apply?
The 90-day period is the standard deadline for LH to determine and notify the applicant of the eligibility decision and payment amount. The actual payment date and deposit schedule may differ depending on the decision and payment procedures.
Q. What happens if I receive additional auction proceeds after receiving minimum compensation?
You must report the additional recovery and complete the required reconciliation. If a repayment obligation arises and you fail to repay the required amount within the prescribed period, you may be subject to an administrative fine.
The most important factors in South Korea's jeonse fraud minimum compensation program are not simply the one-third deposit threshold, but your previous recovery amounts and your classification as a victim. General victims should first check whether the property disposal process has been completed and whether LH has finished calculating the auction profit. Victims of trust fraud and other unauthorized contracts should instead check whether they qualify for an advance payment before the disposal proceedings end.
