[Asia Economy Reporter Na Ye-eun] The suspect in the fire that occurred the previous day at a lawyer's office in Suseong-gu, Daegu, Cheon Mo (53), is presumed to have made excessive investments beyond his economic means.
According to the police and legal circles, Cheon invested about 680 million won in 2013 in a residential-commercial complex apartment project near Sincheon Market in Beomeo-dong, Suseong-gu.
Cheon was found to have been living on a monthly rental basis in a five-story apartment in Beomeo-dong, Suseong-gu, about a 15-minute walk from the scene of the incident.
The apartment, completed in 1982, is quite old. Out of about 90 households, only around 30 are owner-occupied, while the rest are mostly tenants living on monthly or jeonse (long-term deposit) leases. Due to the high redevelopment potential, monthly rentals are common in this area.
According to real estate agencies, the apartment Cheon lived in is about 47㎡ (approximately 16 pyeong) in size. It has two rooms and a kitchen connected to the living room. Even within the same building, Cheon's unit is the smallest in area. Other units in the same building are about 80㎡, and the adjacent building's units are about 59㎡.
The average monthly rent for an apartment of this size is reported by real estate agencies to be a deposit of 5 million won and a monthly rent of about 200,000 won.
According to court rulings, in 2014, Cheon entered into an investment agreement with the developer constructing the residential-commercial complex apartment in Suseong-gu and invested a total of about 680 million won. He initially invested 320 million won to cover the developer's initial project costs and subsequently invested an additional 365 million won over ten installments.
However, as the project was delayed and losses increased, Cheon filed a lawsuit against the developer and its representative, Mr. A, demanding the return of part of his invested amount (about 530 million won) and compensation for delay damages.
The first trial ruled that the developer must return the investment and damages to Cheon, but the developer did not comply. Consequently, Cheon filed another lawsuit last year against Mr. A for the return of the agreed funds. In this lawsuit, Mr. Bae was the legal representative for Mr. A.
However, the court judged that there was insufficient evidence to recognize Mr. A as a person in a dominant position within the developer, resulting in Cheon's loss in the first trial.
The police believe that Cheon, unable to contain his anger over this, went to lawyer Bae's office and committed arson. Lawyer Bae had fortunately avoided harm as he was on a business trip to Pohang, Gyeongbuk, the day before.
Cheon's financial status prior to this investment is unknown, but considering only his current residence, it appears that he invested his entire assets in the construction of the residential-commercial complex apartment. It is not confirmed whether he had any debts with banks.
The police have determined that Cheon did not have any particular occupation.
Meanwhile, the fire resulted in the deaths of seven people, including the lawyer and staff inside the building. Additionally, 49 people suffered burns or smoke inhalation, and 31 were transported to hospitals due to injuries.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
