'Architect King' Jeonse Fraud Victim Found Dead... Jeonse House Passed to Auction

A man in his 30s who was a victim of a Jeonse fraud in Incheon left a suicide note and took an extreme step.

The man is known to be a victim of the so-called 'Construction King' case, who was recently arrested on charges of Jeonse fraud amounting to around 12 billion KRW.

According to the Michuhol Police Station in Incheon on the 2nd, at around 5:40 PM on the 28th of last month, a man in his 30s, Mr. A, was found dead in a villa in Michuhol-gu, Incheon.

A friend of Mr. A, unable to contact him, went to his house and, when the door did not open, reported it to 112. The fire department that responded forcibly opened the door and found Mr. A deceased inside.

The suicide note found on Mr. A’s mobile phone in the form of a memo reportedly stated, "The government's measures regarding (Jeonse fraud) are very disappointing, and I can no longer endure it. I hope this problem will be resolved through my decision."

Also, it included expressions of gratitude to the officials of the Michuhol-gu Jeonse Fraud Victim Countermeasure Committee and acquaintances, saying that he found solace through the committee’s activities, the committee reported.

According to the committee, the villa where Mr. A lived is currently under voluntary auction, and since he was not classified as a small tenant guaranteed the highest priority repayment under the Housing Lease Protection Act, he had not been able to recover his Jeonse deposit of 70 million KRW until recently.

The committee plans to hold a memorial service on the 6th at Nam Square near Juan Station on the Gyeongin National Railroad (Seoul Subway Line 1) in Michuhol-gu.

The police found no signs of external intrusion and, seeing no connection to a crime, handed over Mr. A’s body to his family.

The 'Incheon Michuhol-gu Jeonse Fraud Victims Countermeasure Committee' is urging strict punishment for the Jeonse fraud perpetrators.
[Image source=Yonhap News]

Meanwhile, Mr. B, known as the Construction King, was arrested last month by the police on charges of orchestrating Jeonse fraud in collusion with sublease operators and licensed real estate agents.

He is accused of embezzling 12.6 billion KRW in Jeonse deposits from tenants for 163 apartment and villa units in Michuhol-gu, Incheon, between January and July of last year.

The police believe that despite worsening financial conditions since last year, which could have led to apartments or villas being auctioned, they recklessly entered into Jeonse contracts. Even though mortgage loan interest and various taxes were overdue, making it impossible to return the Jeonse deposits upon contract expiration, they maintained contracts by increasing deposits by tens of millions of KRW.

Starting about ten years ago, Mr. B began acquiring houses, borrowing names from acquaintances to build new apartment or villa buildings, then using Jeonse deposits and mortgage loans to construct more multi-family housing, thereby expanding his real estate holdings.

Mr. B owns a total of 2,700 housing units in Incheon and Gyeonggi Province, most of which he built himself. This is more than twice the scale of the so-called Villa King, who owned 1,139 villas but died without returning Jeonse deposits.

After a series of complaints about Jeonse fraud in Michuhol-gu since July last year, the police formed a dedicated team, began an investigation, and confirmed the existence of the actual owner, Mr. B.