Police Detect First Jeonse Fraud Using Real Estate Platform by Licensed Realtors

Illegal Advertisements on Real Estate Brokerage Platform
Operator Neglects Illegal Ads

A group involved in Jeonse fraud using a real estate brokerage platform utilized by licensed real estate agents has been referred to the prosecution.

On the 20th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that they had sent the CEO A of Z platform to the prosecution without detention on charges of aiding and abetting Jeonse fraudsters by allowing illegal rental advertisements on the real estate brokerage platform he operates.

This is the first time the police have investigated a real estate brokerage platform in connection with the nationwide surge in Jeonse fraud cases.

According to the police, A is suspected of aiding and abetting Jeonse fraud by neglecting illegal advertisements posted on the Z platform by landlords without licensed real estate agent certification or real estate consulting operators. The police revealed that a total of 8,772 illegal advertisements were posted on the Z platform, and A neglected 16 listings known to be involved in Jeonse fraud. The police assessed that due to A’s negligence, a total of 3.04 billion KRW in Jeonse deposits was not returned to tenants, causing damages.

The police identified that the Z platform is linked to multiple fraud cases, including the case of Kim, known as the ‘Villa King,’ who committed Jeonse fraud on 1,139 houses in the metropolitan area. The Z platform allows real estate professionals such as licensed agents and consulting operators to register by verifying their business cards, and it has about 35,000 members. Among those who posted illegal advertisements, 113 suspects were sent to the prosecution without detention in May on charges of violating the Licensed Real Estate Agents Act. The police estimate that a total of 512.3 billion KRW in Jeonse fraud damages occurred through the Z platform, including the Jeonse fraud aided by A.

The police stated, "We have requested the Korea Communications Commission to delete posts related to Jeonse fraud on the Z platform to prevent honest licensed real estate agents using the platform from being implicated in Jeonse fraud."