Police Agency Draws Sword Against Jeonse Fraud... Nationwide Special Crackdown for 6 Months

Starting Tomorrow, Strict Crackdown on Illegal Activities
Dedicated Investigation Headquarters Established... Cooperation with Ministry of Land, Infrastructure and Transport

[Asia Economy Reporter Seongpil Cho] The National Police Agency's National Investigation Headquarters will operate a 'Dedicated Investigation Headquarters for Jeonse Fraud' with the head of the investigation bureau as the chief until early next year. This measure follows President Yoon Seok-yeol's order to take strict action against Jeonse fraud.

On the 24th, the National Police Agency announced that to stabilize the economy for ordinary citizens and establish a sound transaction order, it will set up the Dedicated Investigation Headquarters for Jeonse Fraud starting the next day and operate it for six months until January 24 of next year. The headquarters will be led by Yoon Seung-young, head of the National Investigation Headquarters' Investigation Bureau. Each metropolitan police agency will select specialized personnel from the Anti-Corruption Economic Crime Investigation Unit and the intelligence teams of police stations to designate dedicated investigation teams and will promote crackdowns accordingly.

The police have analyzed past cases of Jeonse fraud crackdowns. Through this, they have selected seven key types for focused investigation: ▲no-capital or gap investment ▲intentional non-return of deposits such as 'empty Jeonse' ▲false disclosure of real estate rights relations ▲unauthorized contracts pretending to be the actual owner ▲contracts exceeding the scope of delegation ▲false guarantees or insurance ▲illegal brokerage or mediation activities.

The police plan to make arrest investigations a principle for organized crimes involving large-scale damages or conspiracies among building owners, sales agencies (brokers), and licensed real estate agents. For individual cases, they also plan to thoroughly investigate from the beginning to prevent the spread of damage and address the overall crime. Additionally, they will cooperate with the Ministry of Land, Infrastructure and Transport and local governments to share crime information and notify necessary system improvements identified during investigations.

The police receive suspicious cases of abnormal transactions, such as excessively high Jeonse prices compared to sale prices, from the Ministry of Land, Infrastructure and Transport or upon investigation requests. They will select risk areas where the Jeonse price rate surges rapidly or where auction winning bids are lower than Jeonse prices and plan to conduct joint crackdowns with the Ministry.

They will also focus on damage recovery and prevention of additional harm. They intend to thoroughly track criminal proceeds to prevent recidivism. Guidance on civil procedures to contribute to actual damage recovery will be strengthened. Promotional activities on major types of Jeonse fraud and prevention methods will also be pursued. The National Police Agency stated, "While eradicating Jeonse fraud through crackdowns, we will strive to establish a housing transaction order where ordinary citizens can live with peace of mind."

Earlier, on the 20th, President Yoon stated at the 3rd Emergency Economic and Livelihood Meeting, "Crimes threatening people's livelihoods, such as Jeonse fraud, will be severely punished through strong investigations." He instructed Minister of Land, Infrastructure and Transport Won Hee-ryong to analyze Jeonse fraud types in detail and, in consultation with the Ministry of the Interior and Safety, to form a dedicated police task force to strongly crack down on Jeonse fraud crimes.

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