(Jeonju=Yonhap News) Reporter Na Bo-bae = A group that fraudulently took out tens of billions of won in jeonse (long-term lease) loans using fake rental contracts has been additionally apprehended and transferred for prosecution.
The Jeonbuk Provincial Police Agency’s Criminal Investigation Unit announced on the 16th that they had arrested and transferred five individuals, including the recruiter Mr. A and a real estate agent, on charges of fraud. They also transferred 83 fake tenants without detention.
Mr. A and others are accused of signing 69 fake rental contracts for multi-family houses from 2021 to 2025 and swindling 8.5 billion won.
The group exploited the fact that submitting only a jeonse contract and a housing lease contract registration certificate online resulted in a simplified review and loan approval. They recruited young adults as fake tenants for this scheme.
Once the loans were approved by institutions such as the Korea Land and Housing Corporation (LH) or banks, they reportedly divided and shared the jeonse deposits obtained.
Upon receiving a tip about a group that fraudulently obtained jeonse deposits, the police expanded their investigation and secured evidence of the fake contracts.
A police official stated, “We have arrested three main suspects followed by two additional arrests, and recently transferred them for prosecution. We will continue to respond strictly to cases of abuse involving jeonse loan systems.”