[Exclusive] Police Investigate 40s CEO of Real Estate App Involved in Jeonse Fraud Transactions

The police are confirmed to be investigating the CEO of a real estate application (app) who posted and advertised fraudulent jeonse listings.

Amid a surge in cases of jeonse fraud nationwide, the scene of a villa-dense area in Hwagok-dong, Gangseo-gu, Seoul, on the afternoon of the 19th.
[Image source=Yonhap News]

According to a comprehensive report by Asia Economy on the 28th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has booked Mr. A, a man in his 40s and CEO of the real estate app, on charges of aiding and abetting fraud and is currently investigating him. The police plan to expand the investigation to others who posted fraudulent listings besides Mr. A.

The police consider Mr. A responsible for managing the fraudulent jeonse listings transactions. In fact, it is known that numerous fraudulent jeonse listings were posted on the real estate app operated by Mr. A.

Earlier, the police began investigating after identifying signs that malicious landlords promoted fraudulent jeonse listings through the app. The police are currently expanding the investigation to include the main perpetrators of the jeonse fraud and accomplice licensed real estate agents. The Financial Crime Investigation Unit of the Seoul Police Agency has arrested Mr. Jeong, a man in his 30s and CEO of a real estate consulting firm, on charges of fraud and violation of the Real Name Real Estate Act, in connection with a jeonse fraud case involving approximately 14 billion KRW in the Seoul metropolitan area including Seoul and Gyeonggi. The police believe that the main perpetrator Mr. Choi and Mr. Jeong together embezzled 14 billion KRW in deposits and are continuing the investigation. They are accused of embezzling deposits totaling about 14 billion KRW from 67 tenants between 2019 and 2022 in areas including Gangdong, Yangcheon, Guro, Yeongdeungpo, Gangbuk, Gangseo, and Geumcheon districts in Seoul; Bucheon, Gimpo, and Goyang in Gyeonggi Province; and Incheon.

As the police accelerate the investigation into the jeonse fraud, the number of additional suspects to be booked is expected to increase further. From July last year to March this year, the police conducted a special crackdown on jeonse fraud, arresting 2,188 suspects, detaining 209, and currently investigating 1,749 individuals.

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