Exploiting Loopholes in Public Housing Jeonse Lease... Gang Arrested for Embezzling 10.5 Billion KRW from LH Jeonse Funds

A group involved in embezzling approximately 10.55 billion KRW by exploiting loopholes in the public rental housing lease system for vulnerable groups was arrested in large numbers.

On the 28th, the Gangbuk Police Station in Seoul announced that they had arrested a total of 3 ringleaders, including Mr. A, on charges of fraud, violation of the Special Act on Public Housing, and violation of the Resident Registration Act, along with 9 middle brokers and 117 individuals who had engaged in false address registration. Among them, one ringleader was detained.

According to the police, from March 2017 to last March, the brokers received between 1 million and 5 million KRW from ineligible individuals and created false 'housing vulnerable group' qualifications through false address registration and falsified documents. They then obtained loans ranging from approximately 80 million to 130 million KRW each from the Korea Land and Housing Corporation (LH), resulting in a total fraudulent receipt of 10.55 billion KRW.

Investigations revealed that the three ringleaders, including Mr. A, had the 117 ineligible individuals falsely register their addresses at goshiwons or falsify employment documents proving hardship such as retirement or financial difficulties, thereby enabling them to qualify as tenants for LH’s jeonse rental housing.

A police official stated, "We will take strict action against crimes involving false address registration and falsified documents used to deceive local governments and LH to obtain jeonse rental loans."

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