Jeonse Fraud Crime Damage Amount 'Total Over 500 Million Won'... Application of Specific Economic Crimes Act

The government is strengthening the punishment criteria for Jeonse fraud. The standard of 500 million KRW or more in damages per victim, which applies under the Act on the Aggravated Punishment of Specific Economic Crimes, will be changed to a cumulative amount basis to impose harsher penalties on Jeonse fraud criminals. The scope of investigations to detect Jeonse fraud will also be further expanded.

On the 27th, the government announced the "Inter-Ministerial Support Plan for Jeonse Fraud Victims and Housing Stability," which includes measures to strengthen the punishment of Jeonse fraud criminals.

Until now, under current law, the Act on the Aggravated Punishment of Specific Economic Crimes could only be applied if the damage amount per Jeonse fraud victim exceeded 500 million KRW. However, according to the amendment, when the intent toward victims is singular and the methods of the crime are identical or similar, the cumulative damage amount will be used as the basis for aggravated punishment.

Under the Criminal Act, fraud is punishable by imprisonment for up to 10 years or a fine of up to 20 million KRW, but if fraud is prosecuted under the Act on the Aggravated Punishment of Specific Economic Crimes, the penalty can be life imprisonment or imprisonment for five years or more.

The government plans to not only punish suspects of Jeonse fraud referred to the prosecution but also impose administrative sanctions under related laws such as the Licensed Real Estate Agents Act and the Real Estate Transaction Act to prevent the spread of Jeonse fraud crimes.

To prevent blind spots for Jeonse fraud victims, the scope of investigations will also be expanded. According to the Ministry of Land, Infrastructure and Transport, the first phase of the planned investigation is currently underway, with 9,000 suspicious cases selected and 2,091 cases under investigation. In the second phase of the investigation in the second half of the year, the number will be significantly expanded to 40,000 cases, and suspected Jeonse fraud cases during the investigation process will be proactively referred for investigation. The second inter-ministerial special crackdown will also be conducted until July to continuously eradicate Jeonse fraud.

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