[Tracking Jeonse Fraud Reality]⑦ "I never thought it would happen"... A sigh-filled Victim Support Center

Jeonse Damage Support Center Handled Over 3,800 Consultations in the Last 3 Months
Tenant Mr. Choi "If I Don't Get My Deposit Back, I Might Lose My Apartment Pre-sale Rights"
Over 50% of Victims in Their 30s, Many from Gangseo and Michuhol Districts

[Asia Economy Reporter Kwak Minjae] "Last month, my boiler broke down, so I called the landlord, but they stopped responding. After watching the Villa King news, I got worried and checked, only to find out it was a ‘no-capital gap investment’ scam. I was so worried about losing my entire 150 million won deposit that I took a taxi with my friend who lives with me to the center." (Jeonse scam victim Lee, 24)

The Jeonse Damage Support Center located in Hwagok-dong, Gangseo-gu, Seoul, which I recently visited. I was able to see a tenant who came here to receive counseling.
Photo by Kwak Minjae

Recently visited Jeonse Damage Support Center located in Hwagok-dong, Gangseo-gu, Seoul. Despite it being morning, the waiting area with about 10 seats was full of tenants waiting for consultations. The tenants waiting for their turn wore worried expressions and sighed repeatedly. A center official said, "A male victim in his 30s who visited the center the day before lost his temper and shouted curses at the landlord during the consultation registration," adding, "Many people come here frustrated because, although the jeonse scam is obvious to anyone, there is no way to recover their money."

On that day, Choi (45), who visited the center, was a victim of the jeonse scam by Kwon, known as the ‘Villa God,’ who is suspected of failing to return deposits to 3,493 tenants nationwide. In June last year, the newly built villa where Choi lived was placed under provisional seizure. The jeonse deposit he could not recover was 290 million won. Of this, 90 million won was Choi’s own money, and the remaining 200 million won was entirely loaned. To make matters worse, he recently won a lottery for an apartment in Seoul and is at risk of losing even the down payment. Choi lamented, "If I cannot repay the jeonse loan, I cannot get a mortgage loan. If I fail to pay the remaining balance for the apartment, the contract will be canceled, and I won’t even get back the 100 million won down payment."

The Jeonse Damage Support Center located in Hwagok-dong, Gangseo-gu, Seoul, which I recently visited. In addition to in-person consultations, the center was constantly receiving phone inquiries.
[Photo by Kwak Minjae]

Opened in September last year, the Jeonse Damage Support Center provides one-stop legal consultation, emergency housing, and financial support for tenants who have suffered damages due to jeonse contracts. As jeonse scam cases have surged recently, about 3,800 consultations have been conducted in approximately three months since its opening.

When visiting the center for a consultation, you must fill out the 'Jeonse Damage and Suspicious Fraud Case Report Form.'
Photo by Kwak Minjae

By the afternoon, the center became even more crowded with visitors seeking consultations. As of 2 p.m., the consultation reservation rate reached 80%. The average daily number of consultations increased from 40 to recently over 50. A center official said, "After the Villa King incident, media coverage of jeonse scams increased, leading to a surge in tenants visiting the center," adding, "Sometimes consultations take so long or victims come just before going out to eat that we occasionally skip meals."

The majority of victims visiting here were young people in their 20s and 30s living in Seoul. In fact, Park (59) from Daejeon said he hurriedly came to Seoul and visited the center with his son after learning that his son was scammed in a newly built villa in Hwagok-dong. Kang Hyunjung, head of the Jeonse Damage Support Center, explained, "More than 50% of recent visitors are in their 30s, with the most cases from Gangseo-gu, Seoul, followed by Michuhol-gu, Incheon," adding, "The most common type of damage is ‘no-capital gap investment,’ where newly built villas are acquired without capital and deposits are embezzled."

In addition to in-person consultations, phone consultations from all over the country were continuously taking place. A center official said, "We try to provide as much support as possible for victims, but there are many legal limitations, which is unfortunate," advising, "Tenants must satisfy three conditions?moving-in registration, possession, and fixed date?to have priority repayment rights. If tenants are deceived by landlords and move out before the deposit is returned, even if they have deposit insurance, it is often difficult to recover the money, so caution is necessary."

Logo at the entrance of the Jeonse Damage Support Center located in Hwagok-dong, Gangseo-gu, Seoul.
Photo by Kwak Minjae