Gyeonggi Province asks South Korea to grant foreign victims 0% interest loans

Gyeonggi Province asked South Korea’s central government Aug. 9-10 to close gaps that recognize foreign tenants as jeonse fraud victims but exclude them from major housing and loan programs.

Gyeonggi seeks equal access to housing and loans

The province wants legally resident foreign victims to qualify for low-interest jeonse deposit loans and refinancing through the Housing and Urban Fund. Those programs currently serve Korean nationals.

Gyeonggi also proposed allowing the Korea Land & Housing Corporation to buy homes tied to foreign victims’ cases and convert them into emergency housing. That could let affected tenants remain in their homes rather than relocate.

These are recommendations, not enacted changes. The Ministry of Land, Infrastructure and Transport hasn’t confirmed whether it will pursue the necessary amendments or set an implementation date.

Current aid stops at emergency housing

Foreign tenants can receive official victim status under the Special Act on Support for Jeonse Fraud Victims. Nationality isn’t a barrier during recognition, but separate housing laws block foreigners from public rental housing and Housing and Urban Fund loans.

Emergency housing remains the main national benefit. South Korea increased the maximum stay for foreign victims from two years to six years on Jan. 24, 2025, partly to offset their exclusion from other programs.

Gyeonggi separately offers emergency living expenses to recognized victims whose affected property is in the province, including foreigners. Households already receiving certain emergency welfare or relocation aid can’t collect that provincial payment.

Long-term residents are the group affected

The proposal primarily covers registered foreign workers, students, spouses and other longer-term residents who signed jeonse leases. Tourists and short-stay nomads using hotels, guesthouses or monthly rentals generally don’t fall under the system; settling in South Korea usually requires a longer housing arrangement before jeonse becomes relevant.

No foreign tenant needs to refile or meet a new deadline yet. Victims seeking existing support must apply for recognition through the city or province responsible for their residence, then use local government or housing support centers for guidance.