Jeong, the main culprit in the "Suwon jeonse fraud family" case, who was indicted on charges of causing about 76 billion won in losses to more than 500 jeonse tenants through zero-capital gap investing (purchases with jeonse deposits), received a final sentence of 15 years in prison at the Supreme Court on the 25th. Fifteen years in prison is the statutory maximum for fraud.
The Supreme Court's Second Division at 10:15 a.m. that day dismissed Jeong's appeal, who had been indicted and detained on charges including fraud, violating the Appraisal Act, violating the Real Name Real Estate Transactions Act, breach of trust in the course of business, and violating the Commercial Act, and finalized the appellate ruling that sentenced him to 15 years in prison. Jeong's wife, Kim, who was indicted alongside him on charges of conspiring in and participating in the crimes, had her six-year prison term finalized that day, and their son had his four-year prison term finalized. All sentences are the same as in the appellate court.
Jeong's family was indicted and detained in Dec. 2023 on charges that, from Jan. 2021 to Sep. 2023, they used the family's and a rental corporation's names to acquire about 800 dwellings across Suwon and then siphoned off about 76 billion won in jeonse deposits from more than 500 tenants.
Investigators found they leased properties by using tenants' deposits to pay purchase prices or to repay other tenants' deposits in a "rollover" scheme while in a state of excess liabilities exceeding 70 billion won. In addition, the son, a licensed appraiser, is accused of participating by, at his father's request, appraising rental buildings at prices higher than market value.
In Dec. last year, the trial court sentenced Jeong to 15 years in prison and ordered the forfeiture of 103.6 million won. It also sentenced his wife, Kim, to six years in prison and his son to four years in prison. The trial court found all remaining charges guilty except for the Appraiser Act violation and some of the son Jeong's fraud charges before Mar. 2023.
The trial panel said, "Because of the defendant's slapdash business operations, 500 victims suffered severe economic harm amounting to about 76 billion won," and added, "For ordinary people, a jeonse deposit is virtually their entire fortune, and it appears that one of the victims took their own life after the defendant's crimes came to light." Both the prosecution and the defense appealed the first-instance ruling. In the first trial, prosecutors had sought 15 years in prison for Jeong and his wife and 12 years for the son.
In May, the appellate court handed down the same sentences as the trial court. However, unlike the first instance, it found Jeong and his son guilty of violating the Appraiser Act.
Both the defendants and the prosecution appealed the appellate ruling. However, the Supreme Court found no issue with the appellate judgment that day and finalized the sentences of 15 years in prison for Jeong, and six years and four years for his wife, Kim, and their son, respectively.