"Is Being Deceived Something to Boast About?" Bruised Jeonse Victims Endure Mockery

Some Netizens Use Harsh Language Against Fraud Victims
"Social Stigma Makes It Harder for Victims"

Tenants who have fallen victim to jeonse fraud are shedding tears amid the flood of online ridicule. However, since jeonse fraud is a problem caused by information asymmetry rather than the victim's negligence, there are calls for national attention to resolve the issue.

On the 20th, numerous posts mocking victims of jeonse fraud were shared across various social networking services (SNS) and online communities. Comments such as "What’s there to be proud of getting scammed?", "Weren’t you the ones who signed the jeonse contract?", "Then why did you move in without properly checking?", and "Aren’t the tenants the ones who signed contracts knowing the property had a mortgage?" were posted, blaming the victims.

The Jeonse Fraud Victim Countermeasure Committee of Michuhol-gu held a press conference on the 14th in front of the Government Seoul Office, urging a temporary suspension of auctions for houses affected by jeonse fraud.
[Image source=Yonhap News]

Some expressed dissatisfaction with the ruling and opposition parties starting to prepare relief measures for victims of jeonse fraud. One netizen lamented, "Is it right for the government to support people who lost money after paying with their own funds?" and added, "In the end, isn’t that all our tax money?"

However, such criticism has been pointed out as harsh. The current jeonse system is explained to favor landlords rather than tenants.

Ansangmi, chairperson of the 'National Countermeasures Committee for Victims of Jeonse Fraud and Empty Jeonse,' told Yonhap News the day before, "The social view that 'the victims are also at fault' makes things difficult for us," adding, "Tenants also put all their assets on the line when signing contracts, so they do not handle matters carelessly. Trusting the broker’s words that 'there is no problem' and accepting requests to raise the deposit upon renewal were all acts of survival."

Collusion Among Actual Owners, Landlords, and Brokers... Landlords Are Bound to Be 'Information Disadvantaged'

Apartment with Jeonse Fraud Attached to Appeal
[Image Source=Yonhap News]

Earlier, a scandal erupted when three victims of jeonse fraud in Michuhol-gu, Incheon, committed suicide one after another. All the victims were tenants of a man in his 60s, Nam Mo, known as the so-called 'Construction King.' Nam owns thousands of houses in the Michuhol-gu area of Incheon and is currently indicted on charges including embezzling 12.5 billion KRW in jeonse deposits from tenants.

According to the police, Nam has been running a rental business for about 10 years. He used acquaintances as proxy landlords to hold about 2,700 houses in Michuhol-gu. These proxy landlords received around 2 million KRW as compensation for lending their names to Nam and signed jeonse contracts directly with tenants under their own names.

The role of deceiving and attracting victims was handled by five real estate agents who had exclusive contracts with Nam. In other words, Nam, along with his acquaintances and real estate agents, planned jeonse fraud over a decade. Since the actual owner, proxy landlords, and real estate agents effectively became one entity, tenants had no way to defend themselves. This is a typical fraud exploiting information asymmetry.

The government’s measures to prevent jeonse fraud also focus on resolving the information asymmetry disadvantageous to tenants.

On February 2, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated at the 'Joint Briefing on Comprehensive Measures to Eradicate Jeonse Fraud' that "We will fundamentally eliminate incentives for jeonse fraud and improve information asymmetry so that tenants can recognize and avoid risky contracts in advance," adding, "We will strengthen the obligations of real estate agents, including verifying landlord credit information and jeonse fraud risks, and disclosing business history, while providing tenants with necessary information before contracts, such as malicious landlords and delinquency information."

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