Prosecutors Indict Group for Jeonse Fraud Targeting Office Workers Near Daedeok Innopolis

A landlord and a group of real estate agents who committed lease fraud targeting office workers living near the Daejeon Daedeok Special Zone have been indicted.

The Daejeon District Prosecutors' Office announced on the 4th that landlord Mr. A, who is accused of fraud for failing to return lease deposits worth around 10 billion KRW received from about 100 tenants, has been arrested and indicted.

The prosecution also arrested and indicted real estate agent Mr. B, who assisted Mr. A by consulting on no-capital gap investment methods and mediating lease contracts, on charges including violation of the Real Name Real Estate Act. Another real estate agent, Mr. C, was indicted without detention on charges including violation of the Real Estate Agent Act.

Mr. A is accused of signing lease contracts with 131 tenants with the help of Mr. B and Mr. C and failing to return deposits totaling 14.8 billion KRW.

Using the no-capital gap investment method, he purchased dozens of multi-family houses and officetels near the Daedeok Research and Development Special Zone in Yuseong-gu, Daejeon, starting from 2016, and recruited tenants together with Mr. B and others.

Mr. B facilitated lease contracts with 22 people, enabling Mr. A to receive 2.36 billion KRW, and reportedly received about 300 million KRW as consulting fees and other compensation.

Mr. C received a commission of 45 million KRW, exceeding the legal brokerage fee, and mediated lease contracts with 57 people, assisting Mr. A in receiving 5.89 billion KRW.

The victims of the crime were mostly young professionals in their 20s and 30s working in research complexes. The perpetrators exploited the tenants' lack of real estate knowledge by deceiving them about priority deposits and the market prices of multi-family houses to conclude the contracts.