Supreme Court Confirms 15-Year Prison Sentence for 50-Year-Old in Busan 18 Billion Won Jeonse Fraud Case

A man in his 50s who was tried for a jeonse fraud involving 18 billion won in Busan has been sentenced to 15 years in prison, a heavy sentence that has been finalized. This is the first final ruling related to jeonse fraud.

On the 20th, the Supreme Court's 1st Division (Presiding Justice Shin Sook-hee) upheld the original sentence of 15 years imprisonment for Mr. A, who was indicted on charges of fraud and violation of the Real Name Real Estate Act. This is the maximum statutory sentence for fraud under the Criminal Act, including the application of concurrent offense aggravation by the court.

Supreme Court, Seocho-gu, Seoul

Mr. A was charged with conducting rental business on nine buildings, including officetels in Suyeong-gu, Busan, from 2020 to 2022 using a "no-capital gap investment" method, receiving a total jeonse deposit of 18 billion won from 229 victims and failing to return it.

During the trial, Mr. A argued that he could not return the deposits due to various regulations and interest rate hikes caused by changes in real estate policies, but this was not accepted. The first trial court stated, "Economic conditions such as the real estate market and interest rates are unpredictable and subject to change, so landlords must consider and prepare for the worst-case scenario," and pointed out, "The main responsibility in this case lies with the defendant who conducted rental business beyond his capacity." The court then sentenced him to 15 years in prison, exceeding the prosecution's demand of 13 years.

Mr. A appealed, claiming the sentence was too harsh, but the second trial court dismissed the appeal, stating, "The original sentencing does not appear to exceed the reasonable range of discretion." The Supreme Court's decision was the same.