The Lotte World Tower 'Signiel' in Songpa-gu, Seoul, which has become a 'symbol of wealth,' frequently appears in scams where fraudsters pose as affluent individuals. Similar to the past misuse of Tower Palace, criminals exploit the high housing costs and the symbolic status of Seoul's new landmark for their crimes. Since Signiel Residence is legally an officetel that allows short-term rentals, it enables fraudsters who want to 'strike quickly and disappear' to flaunt their wealth.
Lotte World Tower panorama. [Photo by Lotte Construction]
Jeon Cheong-jo and Ra Deok-yeon... Fraudsters Who Chose Signiel
A representative fraudster who exploited Signiel is Jeon Cheong-jo, who was once the fianc? of fencing national team member Nam Hyun-hee. Jeon, who was indicted and detained on the 29th of last month on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, rented a Signiel Residence unit for three months during his fraudulent activities. The monthly rent he paid to the landlord was 35 million KRW. Jeon invited victims to this place, pretending to be wealthy and flaunting himself to deceive them. So far, 32 victims have been identified, with damages amounting to 3.69 billion KRW.
Ra Deok-yeon, CEO of Hoan and the main culprit behind the 'SG Securities Stock Price Crash Incident,' also chose Signiel as a secret office. Ra is known to have discussed investment-related matters here with key accomplices. Additionally, Tak Mo, who is accused of requesting the suppression of investigations related to the 'police and prosecution broker' case, selected Signiel Hotel as a venue for another crime involving cryptocurrency fraud. Tak, who is on trial for a cryptocurrency scam amounting to approximately 885 million KRW, allegedly called victims to Signiel Hotel and defrauded them of coins and money by promising investment returns.
Jeon Cheong-jo, who was sent to the prosecution last month on charges including fraud. [Image source=Yonhap News]
Monthly Rentals Favor Easy Access for Fraudsters... Landlords Also Cautious About Short-Term Rentals
Completed in 2017, Signiel Residence is currently regarded as the most luxurious residential facility in South Korea. It consists of 223 units located on floors 42 to 71 of the 123-story Lotte World Tower. With strict security and top-tier residential services, many celebrities and notable figures reside here.
The unit sizes vary from 133㎡ to 829㎡, with sale prices ranging from 6.5 billion to 32 billion KRW. The jeonse (long-term deposit lease) prices are also high, between 5.6 billion and 8 billion KRW, so many units are offered as monthly rentals. As of the 13th, there are 75 monthly rental listings for Signiel Residence on Naver Real Estate, more than the 57 for sale and 9 jeonse listings. Among these, there are three short-term rental listings available for immediate move-in, including one with a 10 million KRW deposit and 35 million KRW monthly rent, and two with 30 million KRW deposits and 40 million KRW monthly rents.
Due to the repeated fraud cases exploiting Signiel, landlords have become more cautious, according to nearby real estate agents. Especially those offering short-term rentals have added conditions to their leases. This is to prevent criminals from abusing ultra-short-term monthly rentals for crimes or to avoid situations where fraudsters without actual financial capability fail to pay high monthly rents. A representative from Signiel A Real Estate Office said, "In cases where short-term tenants default on rent, for ultra-short-term leases, we sometimes collect rent in advance for the lease period or increase the deposit." Another real estate office representative said, "After the Jeon Cheong-jo fraud case, there is a tendency to avoid contracts shorter than three months, and many landlords now want to clearly know what business the tenant is engaged in."
Interior view of Lotte World Tower Signiel Residence. [Photo by Lotte Construction]
"Signiel's 'Symbol of Wealth' Exploited for Crime"
Park Won-gap, a real estate expert at KB Real Estate, explained, "Living in Signiel, which has become a symbol of wealth and an object of admiration, has itself become a status symbol. The strict security makes it so that not just anyone can enter, which enhances the halo effect making residents feel special, and fraudsters exploit this."
Kim Hak-ryeol, director of Smart Tube Research Institute, a real estate research firm, said, "In the past, Tower Palace in Dogok-dong was the representative residence for flaunting wealth, but nowadays, Signiel is perceived as a gathering place for Seoul's new rich, the so-called 'young rich.' Since long-term rentals at Signiel require huge sums, it seems fraudsters opt for short-term rentals within their available budget."
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