'Kkangtong Jeonse Fraud' Landlord Arrested, Yet Victims Continue to Emerge... Police Conduct Additional Investigation

'Broker Role' Real Estate Agents Also Investigated as Defendants
Police: "There May Be More Tenants Who Suffered Damage but Could Not Report"

[Asia Economy Reporter Yoo Byung-don] The police have launched an additional investigation into a man in his 50s who was arrested for committing rental fraud using the so-called 'Kkangtong Jeonse' method (a type of lease where the collateral loan and the Jeonse deposit exceed the sale price).

On the 18th, the Yangcheon Police Station in Seoul announced that they are conducting an investigation into Mr. Lee, a man in his 50s currently detained on charges of fraud.

The police uncovered evidence that Mr. Lee, who owns 479 villas mainly in the Seoul metropolitan area including Seoul, Gyeonggi, and Incheon, colluded with real estate agents while committing crimes against tenants using the 'Kkangtong Jeonse' method.

This information came to light as some tenants who were defrauded by Mr. Lee, who was already legally detained earlier this year, filed additional complaints with the police.

It has been confirmed that some of the real estate agents involved have been summoned and questioned as suspects.

A police official explained, "The suspect is already detained for the same crime, and additional victims have emerged," adding, "We believe there are more tenants who have suffered damages but have not yet reported the crime."