Over 30 Witnesses in Planned Real Estate Trial 'Delaying Tactics'... First Trial Exceeds 2 Years

Domestic Largest Company Woori Gyeongmae... 4.2 Billion Won Damage Amount Causes Great Distress
Another Company Acquitted

Apgujeong Hyundai Apartment_Real Estate Reference Photo / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Gong Byung-sun] Victims of planned real estate scams are crying over fraud and delays in trials.

A Mr. A (50), who worked as an employee of 'Woori Auction,' the largest planned real estate company in South Korea, in Bupyeong-gu, Incheon since 2017, suffered a total loss of 200 million KRW from Woori Auction. After realizing in 2019 that he could not get his money back, he filed a fraud lawsuit with acquaintances. Although various media outlets showed interest and he expected an easy victory, the trial has been sluggish for over two years in the first trial. Mr. A said, "The defendants keep requesting witnesses, prolonging the trial," adding, "More and more victims are getting exhausted."

Although the results of trials related to planned real estate scams are gradually emerging, the verdicts are mixed. The rationale for the rulings is that it is difficult to prove the defendants' deceptive acts due to lack of evidence. However, despite most cases showing similar methods, the outcomes are inconsistent, leaving victims frustrated.

According to the legal community on the 21st, seven people including Jeong, an operator of Woori Auction's Bupyeong branch, are undergoing first trial at Bucheon branch of Incheon District Court on charges of fraud. This group is known to have embezzled about 4.2 billion KRW from victims of planned real estate scams.

The trial was filed on December 19, 2019, but the first trial is still ongoing. The reason for the delay is the continuous witness requests. So far, 28 witnesses have appeared in court, and two more witnesses are scheduled to appear at the trial on March 16.

Victims complain that since the methods are similar to those of Hwang, the chairman of Woori Auction, who was previously convicted of planned real estate fraud, a swift judgment referencing that case is necessary. They claim that the company did not properly show worthless land to investors or forced employees to pay penalties if their sales performance was insufficient. Furthermore, in August 2017, the Bupyeong branch management reportedly flaunted their friendship by receiving an award from Hwang, recognizing them as the top department. Hwang was sentenced to 1 year and 6 months in prison by Gwangju District Court in 2020 for fraud.

Victims Frustrated by Prolonged Trials... Acquittals Also Emerging

Recent rulings have increased anxiety among victims of planned real estate scams. On the 17th, Seoul Northern District Court acquitted four people including Yoo, who were indicted for fraud and violation of door-to-door sales laws related to a planned real estate company. The court explained, "Victims did not receive explanations directly from the defendants but heard exaggerated or false explanations from salespeople and signed contracts. Based solely on the prosecutor's evidence, it is difficult to sufficiently prove that defendant Yoo instructed or tacitly knew about the deceptive acts."

Yoo is also known to be a close associate of Hwang, having appeared together in media interviews. There are suspicions that Yoo was the person who practically designed and managed the scam methods of the planned real estate company. Another victim, Mr. B, claimed, "Yoo managed subsidiary companies derived from Woori Auction," and said, "Acquitting due to lack of evidence is tantamount to creating a situation where there are victims but no perpetrators."

A legal community official said, "Many victims of planned real estate scams are still undergoing trials," adding, "These rulings shift all responsibility onto powerless salespeople, so more accurate judgments are needed." Ko Hye-ryeon, head lawyer of the law firm ‘Hye,’ advised, "Having recorded evidence is crucial for favorable rulings," and added, "If you get involved in planned real estate scams, you should strive to secure physical evidence."

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