Jeonse Fraud Ring Worth 15 Billion Won Busted: 19 Arrested, Including Ringleader and Recruiters

Sejong Police Agency Cracks Down on Financial Crimes
Targeting the Livelihoods of Ordinary Citizens

Mobile Phones Used by Jeonse Fraud Gang / Sejong Police Agency

A jeonse fraud ring, which targeted the housing stability of ordinary citizens and orchestrated a scam worth approximately 15 billion won, has been apprehended by the police.

The Sejong Police Agency announced on the 27th that all 19 members of the group, who secured loans under victims' names by forging jeonse contracts and manipulating loan documents, have been arrested. Among them, three key figures, including the ringleader and recruiters, have been detained on charges including fraud, while the remaining 16 have been referred for prosecution without detention.

According to the police, from June 2022 to January of this year, the group recruited accomplices to pose as fake landlords and tenants through online "role agency" services.

Subsequently, they deceived acquaintances by promising a 10% return on real estate investments, collected identification cards, employment certificates, and other loan documents, and used these to secure jeonse and personal loans under the victims' names from 15 financial institutions on 88 separate occasions.

Jeonse Loan Fraud Operation Flowchart / Sejong Police Agency

In particular, the ringleader, identified as Mr. A, leveraged connections made through previous fake wedding guest part-time jobs to recruit fake landlords and tenants. He then prepared fraudulent jeonse contracts at real estate agencies and, in preparation for verification by financial institutions, secretly activated mobile phones under the victims' names before executing the loans.

The scheme was exposed when Mr. A failed to pay interest on time while using part of the loan proceeds to pay off earlier debts in a "Ponzi-like" manner, prompting financial institutions to contact the victims directly.

After receiving complaints from the victims, the police, recognizing the seriousness of the case, consolidated related reports from other police stations and launched a comprehensive investigation.

It was confirmed that Mr. A used part of the embezzled loan funds to make repayments, purchase imported cars and luxury goods, cover entertainment expenses, and pay accomplices.

A representative from the Sejong Police Agency stated, "We plan to confiscate and preserve the criminal proceeds of the ringleader and other participants. This is a serious crime that undermines the livelihoods of ordinary citizens by exploiting jeonse loan policies and depriving them of loan opportunities, and we will continue to respond with strong measures."

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