Blocking 'Private Rental Housing Association Fraud' at the Source... Protecting Housing for Low-Income and Youth Residents

Rep. Lee Sang-sik's amendment to the 'Special Act on Private Rental Housing' passes National Assembly plenary session
Legal mechanisms have been established to fundamentally block so-called 'private rental housing association fraud,' which has caused distress to low-income residents and youth by prohibiting unqualified voluntary organizations from recruiting tenants or collecting funds such as down payments.
Rep. Lee Sang-sik of the Public Administration and Security Committee (Democratic Party of Korea, Yongin Gap) announced on the 21st that the amendment to the 'Special Act on Private Rental Housing,' which he proposed to stabilize housing for low-income residents and protect property rights, was reflected in the alternative bill and passed the National Assembly plenary session on the 20th.
Rep. Lee Sang-sik of the Democratic Party of Korea. [Photo=Office of Rep. Lee Sang-sik]
Recently, in the Seoul metropolitan area, including Yongin Special City, there have been successive cases where 'voluntary organizations'—rather than legally registered rental business operators—recruited prospective tenants through false and exaggerated advertisements, claiming to conduct private rental housing projects.
These groups collected money from youth and low-income residents under the guise of membership fees or agency fees without actually securing the land, causing projects to drift for long periods. However, under the existing legal system, there were no provisions to directly sanction them, which limited the prevention of damage.
The core contents of the amendment proposed by Rep. Lee Sang-sik include: △Limiting the qualification to recruit tenants to legally registered rental business operators and similar entities, △Prohibiting unqualified persons from receiving money or valuables such as down payments, and △Imposing penalties of up to 2 years in prison or a fine of up to 20 million won for violations.
With the passage of this amendment, a institutional foundation has been established to preemptively block indiscriminate quasi-investment activities and deceptive tenant recruitment occurring in the private rental housing market, thereby protecting well-intentioned prospective tenants.
Moving forward, more active and preemptive management and supervision by competent local governments are also expected to become possible.
Rep. Lee Sang-sik stated, "The private rental housing system was established to help stabilize the housing of low-income residents, but we could no longer tolerate illegal acts that exploit this system to snatch away the hard-earned assets of citizens. With the passage of this alternative, we will be able to prevent the recurring housing and financial damage to low-income residents in Yongin and across the country."