A Man in His 50s Arrested for Embezzling 48 Billion Won in Jeonse Fraud

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] A man in his 50s who embezzled hundreds of billions of won through jeonse fraud has been arrested.

The Anti-Corruption Economic Crime Investigation Unit of the Gwangju Metropolitan Police Agency announced on the 24th that Mr. A was detained on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

Investigations are also ongoing into the licensed real estate agents and brokers involved in the crime.

Mr. A is accused of purchasing a total of about 400 villas between 2019 and 2020 using a gap investment method, then embezzling 48 billion won in jeonse deposits by not returning them to the tenants.

He purchased houses with jeonse deposits exceeding the sale price, effectively owning multiple real estate properties with no capital.

It was investigated that he recruited tenants through licensed real estate agents using these 'empty can jeonse' properties.

The police received a complaint from the Housing and Urban Guarantee Corporation, which made substitute payments for the jeonse deposits in June, and an investigation request from the Ministry of Land, Infrastructure and Transport, and began an investigation, capturing Mr. A while he was on the run.

The police urged, "Jeonse fraud victims are concentrated among young people and newlyweds with little social experience, so special caution is required when signing lease contracts."

They added, "We will thoroughly investigate those involved in this case and continue to strictly respond to jeonse fraud crimes that cause suffering to ordinary citizens."

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