63 Suspects Arrested for Forging Jeonse Loan Documents to Embezzle 10 Billion Won

[Asia Economy Reporter Hwang Seoyul] A group that recruited a large number of false tenants and landlords, then forged documents to obtain about 10 billion KRW in jeonse deposit loans from banks, has been apprehended.

On the 3rd, the Seoul Yangcheon Police Station announced that from January last year to October this year, they arrested 63 individuals on fraud charges who recruited false landlords and tenants, then forged jeonse contracts and loan-related documents to receive jeonse deposit loans. Among them, 7, including the ringleader Mr. A, were detained.

The group is accused of systematically dividing roles such as ringleader, middleman, loan manager, forger, money exchanger, and recruiter (for false landlords and tenants), then forging false jeonse contracts and loan-related documents to embezzle approximately 10 billion KRW over about 45 transactions from commercial banks.

It is understood that they exploited the fact that jeonse deposit loans guaranteed by the Korea Housing Finance Corporation (HF) are easily granted if the tenant provides income verification documents and a jeonse contract.

The ringleader Mr. A organized the crime by appointing a middleman overseeing the operation, a loan manager who directly executed the loans using tenants, a forger who falsified loan documents, a money exchanger who converted checks into cash to launder money, and recruiters who recruited false tenants and landlords.

In October last year, the police received a tip about a group that created jeonse contracts using forged loan documents and false tenants and landlords to obtain jeonse deposit loans. Subsequently, they analyzed whistleblower testimonies and submitted materials, prioritized arresting the ringleader and middleman, and summoned related individuals for investigation. Among the 63 arrested, 7 who actively participated in the crime were detained.

The police plan to continue the investigation, anticipating additional crimes, and will request improvements to the loan system from HF and the relevant banks. Additional charges of forgery of private documents will be applied to the ringleader, middleman, and forger.

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