Prosecutors Indict Real Estate Assistant Without Detention for 2 Billion Won 'Empty Lease Fraud'

Embezzling Jeonse Deposits for 6 Years from Dozens of Tenants Including Young Workers

[Asia Economy Reporter Heo Kyung-jun] A real estate agent assistant who committed a ‘Kkangtong Jeonse’ scam, embezzling about 2 billion KRW in Jeonse deposits from dozens of tenants, has been brought to trial.

The Criminal Division 4 of the Ansan Branch of Suwon District Prosecutors' Office (Chief Prosecutor Kim Il-kwon) announced on the 1st that A (55), a real estate agent assistant, was indicted without detention on charges including fraud.

It was revealed that from October 2012 to January 2018, A committed a so-called ‘Kkangtong Jeonse scam’ by purchasing 26 real estate properties using only bank loans and Jeonse deposits without personal capital, defrauding 17 tenants of approximately 2.05 billion KRW in Jeonse deposits and other funds.

Additionally, from January to May 2016, A forged and used 15 lease contracts that converted Jeonse into monthly rent to make it appear that the deposit return liabilities were lower during the process of obtaining secured loans from banks, and secretly entrusted the ownership of 4 real estate properties to others, according to the investigation.

Due to A’s fraudulent acts, victims suffered serious damages such as being evicted from their residences through real estate auctions or becoming credit delinquents due to loan defaults. Cases of a vicious cycle of damage were also confirmed, including victims lending their loan names or repaying other tenants’ deposits to recover their own deposits.

The prosecution plans to thoroughly respond to the trial by actively submitting sentencing materials so that A receives a punishment commensurate with the guilt during the trial process.

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