In Michuhol-gu, Incheon, where many victims of jeonse fraud have occurred, it has been identified that over 1,500 housing units have already gone through auction.
According to Incheon City on the 19th, as of the end of last month, 1,523 units in Michuhol-gu are undergoing voluntary auction (mortgage execution auction) due to jeonse fraud damages, and 87 units have been sold.
The city conducted the first survey on jeonse fraud damages from November last year to January this year, confirming 1,235 units under voluntary auction and 22 units sold. The second survey is currently being expanded throughout Incheon from last month until June.
Looking at the current auction progress, it is about 500 units more than the 1,066 units auctioned or publicly sold out of 1,787 units registered with the Michuhol-gu Jeonse Fraud Damage Countermeasures Committee.
The city has identified that three individuals known as the so-called 'Construction King', 'Villa King' (deceased), and 'Young Villa King' (deceased) own a total of 3,008 housing units in Incheon.
By region, Michuhol-gu has the most with 2,523 units, followed by Gyeyang-gu with 177 units, Namdong-gu 153 units, Bupyeong-gu 112 units, Seo-gu 32 units, Jung-gu 4 units, Yeonsu-gu 3 units, Dong-gu 3 units, and Ganghwa-gun 1 unit.
The city believes most of these housing units are involved in jeonse fraud and is investigating the damage status by checking with the respective autonomous districts whether auctions are proceeding.
An Incheon city official stated, "We are continuously checking the registration certificates of about 3,000 suspected jeonse fraud housing units to verify mortgage registrations and auction progress," adding, "We expect to have an overall outline of the damage scale in Incheon by the end of this month."
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]
Meanwhile, according to the Incheon District Prosecutors' Office, the damage amount in the 'Construction King Jeonse Fraud' case, where three victims recently committed suicide in Incheon, has been confirmed to reach around 50 billion won.
The number of victims has also increased from the initial 161 to about 800, with most of the affected areas investigated to be in Michuhol-gu, Incheon.
A (61), a construction businessman known as the 'Construction King', and nine accomplices are on trial for charges including fraud and violation of the Licensed Real Estate Agents Act, and 51 additional accomplices under further investigation are expected to be sent to the prosecution soon.
They are accused of embezzling 12.5 billion won in jeonse deposits from tenants for 161 apartment and villa units in Michuhol-gu, Incheon, from January to July last year.
A is known to have increased real estate holdings by using jeonse deposits and mortgage loans to build new multi-family housing, currently owning a total of 2,700 units across Incheon and Gyeonggi-do areas.
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