Prosecutors Indict Group for Pocketing Hundreds of Millions Exploiting 'Lotto Subscription' Craze

Seoul Western District Prosecutors' Office Applies Charges of Violation of Housing Act and Obstruction of Business

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] Seven members of a group have been brought to trial on charges of illegally purchasing subscription savings accounts and selling apartment pre-sale rights won through these subscriptions, making billions of won in profits.

The Criminal Division 1 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Lee Gonhyung) announced on the 6th that three individuals, including the head of the fraudulent subscription organization, Mr. A (31), were arrested and indicted on charges of violating the Housing Act and obstruction of business. Two on-site brokers, telephone counselors, and sellers of subscription savings accounts involved in the same charges were indicted without detention.

It was revealed that they committed these crimes by exploiting the so-called 'Lotto Subscription' craze, where the difference between the actual transaction price and the pre-sale price of apartments is significant. The amount they gained reached 475 million won.

They were indicted for illegally purchasing 28 subscription savings accounts from March 2020 to May last year and winning 13 subscription lotteries.

The four individuals indicted for obstruction of business are also accused of disrupting the selection process of beneficiaries by Hyundai Construction and others by illegally acquiring apartments 13 times using the illegally purchased subscription savings accounts.

The prosecution stated, "In addition to the case sent for violation of the Housing Act, charges of obstruction of business against the sales companies were added and prosecuted," and added, "We plan to confiscate 475 million won in criminal proceeds from the defendants." Furthermore, they said, "We have notified the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board to take measures such as canceling supply contracts and restricting subscription qualifications for apartments won through fraudulent subscriptions."