40s Man Sentenced to Prison for Pretending to List Apartment and Embezzling Jeonse Loan Funds

A man in his 40s who pretended to rent out his apartment on a jeonse lease and shared the jeonse loan money with accomplices was sentenced to imprisonment.

Seoul Northern District Court Photo by Yonhap News

On the 2nd, Chief Judge Jo Mi-ok of the Criminal Division 1 at the Seoul Northern District Court announced that Mr. A (49), who was indicted on charges of fraud, was sentenced to six months in prison.

Mr. A was charged with fraudulently obtaining a loan of 70 million won from a financial institution by falsely pretending to have signed a jeonse contract.

On or around June 23, 2020, Mr. A, together with accomplices who proposed to share part of the loan, applied for a jeonse loan by fabricating a jeonse contract for an apartment in Gangbuk-gu, Seoul, as if they had signed a lease agreement.

However, it was revealed that the apartment was actually the one Mr. A was residing in, and despite having no intention to lease it on a jeonse basis, he created a false jeonse contract and acted as the nominal lessor to apply for the jeonse loan.

The court stated, "This crime exploited the loopholes in the jeonse deposit loan system intended to ensure housing stability, deceiving financial institutions to obtain loan money. Beyond causing economic losses to financial institutions, it threatens the stability of the jeonse deposit loan system and citizens' housing security, thus requiring strict punishment," explaining the sentencing rationale.

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