Consignment Management Company Embezzling Deposit Through Double Contracts, Police Investigation Launched

A rental consignment management company was found to have embezzled tenants' deposits through double contracts, prompting the police to launch an investigation.

On the 13th, the Dongnae Police Station in Busan announced that they are currently investigating after receiving a complaint against a rental management specialist company.

According to the police, Company A is suspected of embezzling deposits worth between 10 million and 40 million KRW per household while managing lease contracts for a 600-unit officetel located in Oncheon-dong, Dongnae-gu since 2018.

Company A is reported to have signed 'double contracts' by applying different contract terms regarding deposits to tenants and landlords respectively.

They signed contracts with tenants featuring high deposits and low monthly rent, while showing landlords contracts with low deposits and high monthly rent, thereby pocketing the difference in deposits.

As a result, tenants are at risk of not being able to promptly receive their deposits back even after the lease contracts have ended.

Additionally, landlords who have not received deposits from Company A suddenly face the burden of preparing tens of millions of KRW in deposits to pay tenants who have expressed their intention to terminate the contracts.

A police official stated, “We are currently investigating both tenants and landlords,” and added, “We also plan to question the company officials involved.”

Company A operates nearly 40 business locations nationwide, including in Seoul, Gyeonggi-do, and Incheon, in addition to Busan. The Seosan Police Station in Chungnam and the Jungbu Police Station in Incheon have also received damage reports and launched investigations.

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