Mokpo Police Arrest 50s for Embezzling LH Jeonse Rental Housing Support Funds

Tenant 32 People and Others' Jeonse Deposit Amounting to Approximately 1.9 Billion KRW

The Mokpo Police Station in Jeonnam announced on the 2nd that they have arrested Mr. A, a man in his 50s, on charges of not returning the jeonse deposit despite the expiration of the contract period after increasing the number of houses by purchasing houses without capital, such as hiding the sale price when purchasing a house and setting the jeonse deposit higher than the sale price.

Mr. A is accused of embezzling a total of approximately 1.915 billion KRW from 33 victims, including LH, by not returning the jeonse deposits.

According to the police investigation, it was revealed that Mr. A exploited the ‘Jeonse Rental Housing System’ supported by LH to stabilize housing for vulnerable groups, noting that most of the victims were basic livelihood security recipients and low-income individuals.

In the case of jeonse rental housing supported by LH, LH supports 95% of the jeonse deposit as the lessee.

Mr. A actively took advantage of the fact that if tenants do not receive their jeonse deposits back, Seoul Guarantee Insurance compensates on their behalf, so the amount of damage to tenants is small and does not raise significant issues.

It was confirmed that Mr. A was unable to repay the jeonse deposits to tenants, as he had considerable unpaid taxes in addition to personal debts.

Besides the 32 tenants confirmed as victims, there are tenants whose jeonse contracts have not yet expired, and additional jeonse contracts under the name of Ms. B, who is in a de facto marital relationship with Mr. A, have been identified, suggesting that the amount of damage may increase.

The police are also investigating the facts regarding tenants whose jeonse contracts have not expired and will continue to investigate the charges against Mr. A and Ms. B.

A representative of the Mokpo Police Station said, “During the planned crackdown on jeonse fraud, we independently obtained intelligence and started an investigation, revealing the suspect’s charges through active investigations such as a full survey of tenants, tracking financial accounts, searching residences, and forensic analysis of mobile phones.”

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