A ring that stole tens of billions of won in security deposits for newly built officetel rentals using the so-called "empty jeonse" scheme has been caught by police.
The Seoul Metropolitan Police Agency's Metropolitan Investigation Unit said on the 10th that it had referred 49 people involved in a jeonse scam across the capital region—including a building owner, sales brokers, front landlords, and licensed real estate agents—to prosecutors. The front landlord who forged jeonse contracts into monthly rent contracts was sent in custody.
From December 2021 to July 2022, they allegedly defrauded 5.2 billion won in deposits by targeting college students and entry-level workers, collecting jeonse deposits that exceeded the sale price while transferring title to front landlords with bad credit.
Not only the sales brokers and front landlords but also real estate offices took part in the crime. Victims who signed jeonse contracts trusting the clean certified copy of the registry did not suspect a scam. But the front landlords had no money, and 22 victims lost their jeonse deposits.
Police found that real estate offices, sales brokers, and front landlords split kickbacks ranging from 10 million won to as much as 60 million won. Licensed agents and assistant brokers pocketed fees 10 to 15 times the legal commission, paid into accounts under family names. The sales firm that acted as a broker received a fee of 24 million to 36 million won per case for arranging front landlords.
At the request of the Ministry of Land, Infrastructure and Transport in Aug. 2024, police opened an investigation and, after tracking for about a year and seven months, arrested those involved. Police said, "If you are a victim of a jeonse scam, do not delay reporting due to the suspect's coaxing or threats; you need to report promptly and proceed with legal procedures."