Minister Han Dong-hoon: "Prosecutors to Conduct Direct Investigation into Organized Jeonse Fraud"

On the 2nd, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a joint briefing on measures against jeonse fraud at the Government Seoul Office in Jongno-gu, Seoul, attended by Minister of Land, Infrastructure and Transport Won Hee-ryong, Minister of Justice Han Dong-hoon, and Commissioner of the National Police Agency Yoon Hee-geun. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Hyung-min] The prosecution is considering directly investigating organized jeonse fraud cases, which have recently emerged as a 'malicious crime' threatening the livelihood of the people.

On the morning of the 2nd, at a briefing of the 4th Real Estate Related Ministers' Meeting held at the Government Seoul Office, chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, Minister of Justice Han Dong-hoon stated, "We will thoroughly identify the masterminds behind jeonse fraud and strictly investigate real estate agents and sales agencies involved in the fraud," adding, "For large-scale organized crimes, the prosecution will conduct direct investigations."

Until now, the prosecution found it difficult to directly investigate jeonse fraud cases. Due to the adjustment of investigative authority between the prosecution and police, the prosecution can only initiate direct investigations for fraud cases involving amounts exceeding 500 million KRW, limiting most jeonse fraud cases to be investigated by the police and then transferred to the prosecution. Additionally, direct prosecution investigations require a 'direct connection' to the police investigation results, so even if new accomplices were identified, the prosecution could not investigate additional crimes committed by those accomplices.

Minister Han also emphasized at the trial stage, "The prosecution, police, and Ministry of Land, Infrastructure and Transport will closely cooperate to ensure that those responsible are held accountable in accordance with their crimes."

The Ministry of Justice plans to continuously identify institutional improvements during the investigation and legal support stages of jeonse fraud cases. Together with the Ministry of Land, Infrastructure and Transport and others, they will additionally prepare recurrence prevention measures that can fundamentally prevent and eradicate jeonse fraud. The Ministry of Justice will also proceed with legislative procedures for amendments to the Housing Lease Protection Act that it has reviewed and prepared. The amendments include rights to verify information on senior tenants and landlords' tax delinquency, as well as simplifying tenant registration procedures.

Minister Han and the Supreme Prosecutors' Office issued strict response orders to frontline offices regarding jeonse fraud cases in July and October last year, and the prosecution has been implementing these directives. From July to December last year, the prosecution indicted 145 jeonse fraud suspects (46 detained). Suspects in high-profile cases such as the 'Three Mothers Jeonse Fraud,' the 'Villa King of Hwagok-dong,' and the 'Public Rental Housing Jeonse Fraud' were also sent to trial while in detention. In December last year, the prosecution successfully maintained the indictment in the '12 billion KRW capital-free gap investment jeonse fraud' case, resulting in the maximum sentence of 15 years imprisonment. Defendants in the 'LH·SH Partner Company Impersonation' case were sentenced to 9 years imprisonment.

Additionally, the prosecution, police, and Ministry of Land, Infrastructure and Transport held a 'Jeonse Fraud Response Council' on the 18th of last month and established prosecution-police regional hotlines in seven locations, including the Seoul metropolitan area (Seoul, Incheon, Suwon) and regional hubs (Daejeon, Daegu, Busan, Gwangju), where jeonse fraud frequently occurs. In December last year, the Ministry of Justice also created and operated a 'Jeonse Fraud Victim Tenant Legal Support Task Force' jointly with the Ministry of Land, Infrastructure and Transport and related agencies.