[Economic Crime 24 Hours] "We Install Air Conditioners Cheaply" Heatwave Scammers Rampant in Summer

Disappeared After Taking Advance Payment for Air Conditioner Installation
Pretended to Be a Major Company Installer to Target New Tenants

This summer is forecasted to be hotter and rainier than last year. One essential item to endure the heat is the air conditioner. Air conditioners are mostly installed in spring or autumn rather than in midsummer. At times like these, malicious scammers appear. These are people who repeatedly commit fraud related to air conditioner sales or installation.

In 2019, at a newly built apartment complex in Busan, a victim named Lee Kyung-ryeol (41, pseudonym) visited his apartment for a pre-move-in inspection and met Mr. Joo (then 32) in the complex. Mr. Joo introduced himself as a team leader of a large company and handed Lee his business card. He explained that he could install a system air conditioner at a price cheaper than the market rate.

[Photo by Asia Economy DB] (The photo is not directly related to the article content)

Mr. Joo persuaded Lee that if several residents purchased air conditioners collectively and made advance payments, installation could be done at a discounted price. Enticed by the much lower price than the market rate, Lee transferred over 1 million won to Mr. Joo. However, even after moving in, the air conditioner was not installed, and Mr. Joo made various excuses and did not return the advance payment.

Realizing he had been scammed, Lee filed a complaint with the police, but since the amount was not large and he was the only victim, the investigation was somewhat delayed. However, as similar cases were reported consecutively, the Busan Nambu Police Station began a full-scale investigation. The police judged Mr. Joo’s actions as clear fraud and applied for an arrest warrant in January 2020, but the court dismissed it, citing that Mr. Joo had a fixed residence and had cooperated sincerely with police summons.

Continuing the investigation, the police discovered that Mr. Joo had committed similar crimes not only in Busan but also in Yangsan, Gyeongnam. It was revealed that Mr. Joo went around newly built apartment complexes, even wearing a vest from a large corporation to deceive victims. There were a total of 49 victims who suffered from Mr. Joo’s fraud, with damages amounting to about 160 million won.

After fully identifying Mr. Joo’s criminal acts, the police applied again for an arrest warrant on June 25, 2020, and Mr. Joo was finally detained on July 8. It was also investigated that even while under police investigation, Mr. Joo extorted money from other victims to compensate previous victims and tried to induce settlements to avoid detention.

In 2022, a similar case occurred. Kim (56), who actually operated an air conditioner installation office, decided to commit fraud as his business became difficult to sustain. In October of that year, Kim demanded advance payments from victims who contacted him after seeing his air conditioner installation advertisements. Kim specifically targeted victims who operated businesses such as pubs, restaurants, and churches, where air conditioner installation costs are higher compared to private homes.

There were seven victims who were deceived by Kim, with damages ranging from 3 million won to as much as 16.5 million won. The total illicit gains Kim obtained amounted to 50 million won. After receiving complaints from the victims on December 13, 2022, the police repeatedly summoned Kim, but he did not respond at all and went into hiding.

The police obtained arrest and communication warrants for Kim and continued tracking him. On March 28, 2023, Kim was arrested and detained while openly operating at an office in Daegu. It was also investigated that Kim’s office was provided by his mistress. Ultimately, Kim was handed over to the Busan District Court Western Branch and sentenced to one year in prison, where he is currently serving his sentence.