The amount of damage caused by the 'Construction King Jeonse Fraud' case, centered around the Michuhol-gu area of Incheon, has been identified as being in the 50 billion won range, with about 800 victims.
According to the Incheon District Prosecutors' Office on the 18th, the estimated amount of Jeonse fraud committed by a construction businessman A (61), known as the so-called 'Construction King,' and his accomplices is about 50 billion won. This amount combines the previously indicted damage of 12.5 billion won with additional damages currently under police investigation.
The number of Jeonse fraud victims has increased from the initial 161 to about 800, and most of the affected areas have been identified as Michuhol-gu, Incheon.
The police are investigating 51 additional accomplices related to the Construction King Jeonse fraud case and plan to send them to the prosecution soon.
Previously, A and nine accomplices, including licensed real estate agents, were indicted on charges of fraud and violations of the Licensed Real Estate Agents Act and are currently on trial.
A and others are accused of embezzling 12.5 billion won in Jeonse deposits from tenants for 161 apartments and villas in the Michuhol-gu area of Incheon from January to July last year.
The prosecution believes that A colluded with licensed real estate agents and others to systematically commit Jeonse fraud. Despite the possibility that the houses could be auctioned off due to worsening financial conditions such as overdue loan interest, they recklessly entered into Jeonse contracts.
Investigations revealed that since 2009, A purchased land under the names of licensed real estate agents and brokerage assistants, then built small-scale apartments and villas through a comprehensive construction company he operated.
He increased his real estate holdings by constructing multi-family housing using Jeonse deposits and mortgage loans, and is currently known to own a total of 2,700 units in Incheon and the Gyeonggi-do area.
For his rental business, A operated 5 to 7 real estate offices under the names of licensed real estate agents and had them exclusively handle the brokerage of houses he owned.
The licensed real estate agents concealed the fact that A was the actual owner of the houses, and from January last year, even though auctions had started on several houses, they did not inform tenants and proceeded with Jeonse contracts.
Recently, three victims of the 'Architect King Jeonse Fraud' case in Incheon have consecutively taken extreme measures. The photo shows the apartment where a victim of the Jeonse fraud passed away. [Image source=Yonhap News]
The prosecution is currently conducting asset seizure procedures to freeze some of the properties owned by A and his group.
A prosecution official stated, "We will submit victim testimonies and other sentencing materials to the court during the trial of A's case. If the damage is not restored, we will classify this as an 'economic murder' case and ensure strict punishment."
He added, "This case was difficult to investigate because A hired licensed real estate agents and had contracts signed under their names, making it different from other Jeonse fraud cases in many ways. Administrative authorities need to strengthen crackdowns on licensed real estate agents."
Meanwhile, recently in Incheon, three victims who failed to recover their Jeonse deposits from A and his group have died consecutively.
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