Gyeongnam Police Agency Arrests 91 Jeonse Fraudsters, Detains 15

A Total of 110 Cases and 22.8 Billion Won in Damages, 47 Cases Under Investigation

The Gyeongnam Provincial Police Agency announced on the 9th that it conducted a special crackdown on jeonse fraud from July last year to June 7 of this year, uncovering a total of 63 cases, arresting 91 people, and detaining 15.

The provincial police agency defined jeonse fraud as a ‘malignant fraud’ comparable to ‘economic murder’ and promoted this second special crackdown following the first one from July last year to January this year.

In the second crackdown, an additional 50 people were arrested, 13 more were detained, and the number of investigation targets expanded to 103.

Gyeongnam Provincial Police Agency.
Photo by Lee Seryeong

According to the provincial police agency, as of the 7th, the total number of detected cases reached 110, with damages amounting to 22.8 billion won.

By crime type, ▲illegal brokerage and appraisal accounted for the most with 31 cases, followed by ▲non-return of deposits such as in kkangtong jeonse (empty jeonse) with 27 cases, ▲false disclosure of real estate management relations and jeonse fund loan fraud with 21 cases each, ▲unauthorized contracts with 9 cases, and ▲contracts exceeding the scope of delegation with 1 case.

A table showing the detailed number of people by type of jeonse fraud crime apprehended by the Gyeongnam Provincial Police Agency. [Data provided by Gyeongnam Provincial Police Agency]

During this special crackdown, the police arrested 14 ringleaders who submitted false lease documents to local banks to embezzle 7.28 billion won, including 1.61 billion won in jeonse fund loans for low-income households and 5.67 billion won in false collateral loans, detaining 4 of them.

They also detained 7 ringleaders who submitted false jeonse contracts to online banks to illegally obtain 1 billion won in jeonse funds.

The provincial police agency is also investigating 159 people related to 47 cases of jeonse fraud.

A representative of the provincial police agency said, “To eradicate jeonse fraud that threatens people’s livelihoods, we are vigorously and strictly promoting the second special crackdown on jeonse fraud, including the prosecution of criminal organizations. We will mobilize all investigative capabilities to respond strongly so that ordinary citizens can use jeonse with peace of mind.”