Gang Charged for Embezzling 2.1 Billion Won in Jeonse Loans Using Fake Tenants

A group that fraudulently obtained around 2 billion KRW in jeonse loans from commercial banks by using fake tenants has been brought to trial.

The Criminal Division 1 of the Bucheon Branch of the Incheon District Prosecutors' Office (Chief Prosecutor Oh Ki-chan) announced on the 9th that loan brokerage agent A was indicted on charges of fraud and ten accomplices including B were indicted without detention.

A and others are accused of mobilizing fake tenants to sign jeonse contracts from April 2022 to January last year, and then fraudulently receiving 2.1 billion KRW in jeonse loans from banks through 21 transactions.

They canceled the contracts just before move-in after the bank immediately paid the jeonse loan to the landlord, and the fake tenants received the loan money back from the landlords.

The loans used by A and his group were products that provide up to 100 million KRW at an annual interest rate of 1.5% to young people aged 19 to 34 with a combined annual household income of 50 million KRW or less.

A and others took advantage of the fact that youth jeonse loans can be relatively easily obtained through a non-face-to-face process.

Among the ten indicted without detention, four have already been detained or sentenced to prison for other cases such as special robbery and are now additionally being brought to trial.

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