In South Korea, rental fraud victims are expressing their discontent over being excluded from public aid for restitution because they reside in illegally built properties. One victim, Mr. Choi, invested a significant deposit in a multi-family home in Gimpo, only to find himself in a precarious situation when the landlord failed to return the rental deposit after the contract ended. Further investigation revealed that the landlord had utilized the property as collateral to finance the construction of another building, classifying it as a rental fraud case.

Choi and other victims sought relief by requesting long-term leases through public purchases from the Korea Land and Housing Corporation (LH), but their pleas were rejected due to the illegal status of the building. Despite recent amendments to South Korean laws intended to offer assistance, specific exceptions for public purchase eligibility did not apply to Choi's situation since his building violated local regulations governing construction permits. The enforcement of rules limiting properties in residential zoning has exacerbated the plight of these victims, leaving them without recourse.

The situation has forced officials and local representatives to address the legal limitations that further alienate victims of rental fraud who are also subjected to penalties for living in buildings deemed illegal. In a recent response, Gimpo city officials noted that out of ten public purchase requests related to rental fraud, seven were denied based on the illegality of those buildings. This illustrates a significant gap in support for victims dealing with both fraud and the ramifications of the law on housing stability, raising concerns about the need for legislative reform to safeguard vulnerable tenants.