"43 Billion Won Jeonse Fraud" Construction King Bail Denied... "Risk of Flight and Evidence Tampering"

The so-called 'Construction King,' who is on trial after being detained on charges of a Jeonse fraud amounting to around 43 billion won, applied for bail at the court but was denied.

Judge Oh Gi-du of the Criminal Division 1 at Incheon District Court rejected the bail application on the 6th for construction businessman Mr. A (61) and three accomplices, including a licensed real estate agent, who were indicted and detained on charges of fraud. Judge Oh stated the reason for denial was "concerns that Mr. A and others might flee or destroy evidence."

During the bail hearing, the prosecution argued, "There are 565 victims in the ongoing Jeonse fraud case, with damages reaching 45 billion won, yet no compensation has been made. Four victims have taken extreme measures, reflecting the defendant's grave guilt and the expectation of a heavy sentence."

They further explained the necessity of detention, saying, "The defendants have a history of hiding mobile phones and attempting to persuade accomplices during the investigation, raising a very high risk of evidence destruction if released."

Mr. A and others were indicted on charges of embezzling Jeonse deposits totaling 43 billion won from tenants of 533 apartments and villas in the Michuhol-gu area of Incheon from March 2021 to July last year.

Jeonse Fraud Victim Apartment
[Image Source=Yonhap News]

For the first time in a domestic Jeonse fraud case, the prosecution applied the 'Crime Group Organization Act' to 18 out of 35 members of Mr. A’s group. The prosecution believes Mr. A colluded with licensed real estate agents and others to systematically commit Jeonse fraud. Despite worsening financial conditions such as overdue loan interest and the possibility of properties being auctioned, they recklessly entered into Jeonse contracts.

Mr. A is also charged with embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Investigations revealed that in January 2018, he embezzled a total of 11.7 billion won, including 4 billion won from construction payments for newly built apartments by a construction company to secure a project site in the Donghae Mangsang district. The prosecution believes that Mr. A used Jeonse deposits to cover the embezzled construction funds, which led to property auctions and unpaid Jeonse deposits.

Since 2009, Mr. A purchased land under the names of licensed real estate agents and brokerage assistants, then built small-scale apartments and villas through his comprehensive construction company. He expanded his real estate holdings by constructing multi-family housing using Jeonse deposits and mortgage loans, currently owning a total of 2,700 units in Incheon and Gyeonggi Province, earning him the nickname 'Construction King.'

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