Suspected of Swindling 1.66 Billion Won in Deposits
from 17 Tenants of Multi-Family Homes
A man in his 50s who fled overseas after embezzling billions of won in jeonse deposits has been handed over to the prosecution.
On January 15, the Daejeon Metropolitan Police Agency announced that it had arrested and referred to the prosecution a building owner in his 50s, identified as Mr. A, on charges of fraud for swindling 1.66 billion won in deposits from 17 tenants of multi-family homes.
Mr. A is accused of purchasing two multi-family homes in Jung-gu, Daejeon, using a so-called "gap investment" strategy, and then signing jeonse contracts worth a total of 1.66 billion won with 17 tenants in their 20s to 40s from 2022, failing to return their deposits.
He reportedly exploited the fact that priority deposit information for multi-family homes is not immediately accessible, deceiving tenants by claiming, "There are no other jeonse contracts or mortgage rights on this property."
Unable to return the rental deposits, he left for Thailand in December 2023 and remained in hiding for over two years.
He was arrested by local police in Pattaya, Thailand, after presenting a canceled passport at a local hotel and was forcibly extradited.
In March 2024, following complaints filed by tenants, the police launched an investigation, requested a Red Notice from Interpol (an international wanted notice for suspects with arrest warrants), and continued their domestic investigation targeting the affected tenants.
A police official urged, "When signing a jeonse contract for a multi-family home, please make sure to check the certified copy of the real estate register, the status of fixed dates, and the list of residents to confirm whether you can recover your deposit."
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