Good Wednesday morning. Today we selected the support criteria for jeonse (lump-sum deposit lease) fraud victims passed at yesterday’s (October 6) Cabinet meeting, plus 2 items on administrative measures that disinfection businesses taking over operations and long-term care hospital operators should know about.
Today’s 3 key points
- A minimum guarantee system takes effect on November 13 (Fri): if jeonse fraud victims fail to recover even one-third of their deposit after the auction or public sale ends, the state covers the shortfall.
- A re-announced legislative notice sets out a status-succession report requirement when acquiring or inheriting a disinfection business, with administrative sanctions for failing to report (comments due by October 12 (Mon)).
- The Ministry of Health and Welfare is pursuing corrective orders and other measures against 33 long-term care hospitals that have not met their obligation to apply or reapply for certification.
1. Minimum guarantee of one-third of jeonse fraud deposits, effective November 13
- What changes: An amendment to the Enforcement Decree of the Special Act on Support for Victims of Jeonse Fraud and Housing Stability passed the Cabinet meeting on October 6. It sets the detailed criteria for two systems introduced by the amended Special Act promulgated on May 12.
- Minimum guarantee (minimum support payment): If the amount recovered after the auction or public sale ends falls short of one-third of the deposit, the shortfall is supported. It is calculated by taking one-third of the deposit (the minimum guarantee amount) and subtracting amounts received through opposability and priority repayment rights, amounts repaid through the deposit refund claim, the auction profit, and rent support received.
- Advance payment, later settlement: Victims of unauthorized contracts such as trust fraud can be paid before the auction or public sale ends, with settlement later reflecting any additional amounts recovered.
- Applying the press release example (deposit 150 million won, auction distribution 20 million won, auction profit 10 million won) to the formula above, 30 million won is subtracted from the 50 million won minimum guarantee amount, leaving a shortfall of about 20 million won (actual payment is calculated individually).
- Who: Tenants determined to be jeonse fraud victims, and victimized tenants who contracted with persons lacking authority, such as in trust fraud.
- When: Effective November 13, 2026 (Fri). Application agency, required documents, and application deadline: ⚠️ verify with the original text once the Enforcement Decree and Enforcement Rule are published.
- Administrative Agent’s note: The auction distribution statement, records of repayment on the deposit refund claim, and records of rent support received form the basis of the calculation, so please gather them in one place starting now. If you have not yet been determined a victim, please check on that application first.
- Source: Ministry of Land, Infrastructure and Transport · Amendment to the Enforcement Decree of the Jeonse Fraud Special Act approved at the Cabinet meeting on the 6th
2. New status-succession report for disinfection businesses, with sanction criteria for failing to report
- What changes: The Korea Disease Control and Prevention Agency has re-announced the legislative notice for an amendment to the Enforcement Rule of the Infectious Disease Control and Prevention Act.
- New provision on status-succession reports for disinfection businesses (draft Article 39-2)
- Administrative sanction criteria for failing to report status succession (Annex 11)
- New application requirements for possession permits for bioterrorism infectious disease pathogens (draft Article 20-8)
- Revised provisions on deliberation of vaccination standards; disinfection targets and methods removed from regulatory re-examination items
- Who: Those acquiring or inheriting a disinfection business, corporations taking over a disinfection business through a merger, and research and testing institutions handling pathogens.
- When: Effective date undetermined (stage: re-announced legislative notice). Comments may be submitted by October 12 (Mon) via the Integrated Legislative Notice Center, e-People, or the Infectious Disease Policy Division of the Korea Disease Control and Prevention Agency. Details for each sanction stage: ⚠️ verify with the original text.
- Administrative Agent’s note: If you plan to acquire a disinfection business, please write the reporting schedule and the duty to cooperate on documents into the transfer agreement. After the rule takes effect, missing the reporting deadline may expose you to sanctions, so please track the contract date and reporting date together.
- Source: National Participatory Legislation Center · Re-announced legislative notice of the partial amendment to the Enforcement Rule of the Infectious Disease Control and Prevention Act
3. Corrective orders and other measures for 33 long-term care hospitals failing certification duties
- What changes: The Ministry of Health and Welfare is tightening oversight of long-term care hospitals that apply for certification but do not undergo the survey, or that remain uncertified.
- Under Article 58-3 of the Medical Service Act, long-term care hospitals must apply for certification, and if they receive conditional certification or non-certification, or if their certification is revoked, they must reapply within 90 days.
- The ministry will also check cases where hospitals apply but do not actually undergo the survey (one hospital skipped the survey 6 times out of 7 applications).
- Continued non-compliance without justifiable reason may lead to a corrective order, and violating that order may lead to business suspension and a fine of up to 5 million won.
- Who: Founders and directors of long-term care hospitals, especially institutions delaying reapplication after non-certification or conditional certification.
- When: These are measures under the current Medical Service Act; the Ministry of Health and Welfare plans to require the 33 target institutions to complete the procedures.
- Administrative Agent’s note: Count 90 days from the date you were notified of the certification result to confirm your reapplication deadline, and if you need to postpone the survey schedule, keep the reason in writing. If you have received an advance notice of a corrective order, the priority is to submit a compliance plan and supporting evidence within the deadline for submitting opinions.
- Source: Ministry of Health and Welfare · Long-term care hospital certification is the foundation of patient safety; legal action against uncertified institutions
Deadlines to watch this week
- October 8 (Thu): Statutory penalty for employers with unpaid wages raised to 5 years and 50 million won takes effect (October 6 briefing)
- October 12 (Mon): Comment deadline for the re-announced Enforcement Rule of the Infectious Disease Control and Prevention Act (disinfection business status succession)
- October 22 (Thu): Amended Credit Unions Act takes effect (criteria for mandatory appointment of a standing auditor, etc.)
- November 13 (Fri): Jeonse fraud minimum guarantee and advance payment, later settlement take effect
This briefing was compiled by Hwang Yunsang Administrative Agent Office based on public materials. Whether it applies to an individual case must be confirmed with the competent agency.