‘Development Prospects Exist’ Scam: 100 Billion Won Real Estate Fraud Gang Referred to Prosecution

Purchase Price Inflated 3 to 4 Times... At Least 320 Victims

[Asia Economy Yeongnam Reporting Headquarters, Reporter Ju-cheol In] A group involved in a planned real estate fraud, who bought undevelopable blind land and forest land and sold it at high prices to gain profits worth about 100 billion KRW, has been handed over to the prosecution.

On the 13th, Changwon Jungbu Police Station in Gyeongnam announced that they had arrested and sent two people, including Chairman A in his 40s, on charges of fraud, organizing a criminal group, and violating the Act on Door-to-Door Sales, and sent 30 executives without detention.

Chairman A and his group are accused of establishing 23 real estate corporations from October 2015 to May 2021 and inflating the prices of 266 lands nationwide to three to four times the purchase price or more before selling them.

As a result of investigating about 320 victims, the police estimated the damage amount to be in the 100 billion KRW range, suggesting that the actual scale of damage is likely larger. Most of the lands sold were in the Gyeonggi and Gangwon regions, mostly undevelopable blind land or forest land.

The police applied for pre-indictment seizure of illegal profits and have provisionally seized real estate and other assets worth 13.3 billion KRW. They plan to continue tracking additional criminal proceeds to restore the damages.

This content was produced with the assistance of AI translation services.