Police Arrest Three Fraudsters for Deceiving Buyers with Apartment-Style Factory Residential Units

The police have requested pre-arrest warrants for fraudsters who deceived buyers by selling apartment-style factories as residential facilities.

The Anti-Corruption and Economic Crime Investigation Unit 1 of the Jeonnam Provincial Police Agency announced on the 12th that they have requested pre-arrest warrants for three individuals, including Mr. A, who are suspected of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

Mr. A and others are accused of fraudulently selling apartment-style factories, known as knowledge industry centers, built in the Gwangju-Jeonnam Joint Innovation City in Bitgaram-dong, Naju-si, Jeonnam, in early 2020.

They attracted applicants by falsely claiming that the apartment-style factories, which are only permitted for use as offices or dormitories for workers in manufacturing, knowledge industries, and information and communication sectors, could be leased as general residential facilities like officetels.

It is reported that they falsely promoted stable rental income by citing tenants such as the dormitory of Korea Energy Engineering University (KEPCO University).

The investigation revealed that there are 99 victims, with total damages amounting to 18.5 billion KRW.

The police received complaints from the victims and have booked a total of 10 people related to the construction company, project operator, and sales agency. Among them, pre-arrest warrants were requested for three main suspects, including the representatives of the construction company and the sales agency.

The pre-arrest detention hearings for these suspects will be held on the 13th at the Gwangju District Court.