Couple Involved in 6 Billion KRW Jeonse Fraud Released on Bail

A couple that defrauded approximately 6 billion KRW in jeonse deposits in Daejeon and fled to the United States has been released on bail and will face trial while not in custody.

According to legal sources on the 19th of last month, the Daejeon District Court's Criminal Division 5 granted bail to the couple, Mr. Nam (49) and his wife, who were charged with fraud.

The couple is accused of purchasing 11 multi-family houses in the Daejeon area from 2019 to 2023 and deceiving around 90 tenants into believing that they would be able to return the jeonse deposits properly, thereby illegally acquiring a total of 6.2 billion KRW in jeonse deposits. This constitutes a significant scale for real estate jeonse fraud cases.

Accumulation of Allegations of 6.2 Billion KRW in Jeonse Deposit Fraud

Couple Arrested After International Escape

The couple fled to the United States in 2022 before any complaints were filed and lived in hiding for about two years. In response, the National Police Agency requested an Interpol Red Notice, and they were eventually arrested near Seattle in the U.S. last September and repatriated to South Korea at the end of last year.

Although the exact conditions of the bail granted to Mr. Nam and his wife have not been confirmed, it is presumed that the court allowed their release on bail with several conditions due to their arrest and indictment in January and before their detention period expired.

According to the Criminal Procedure Act, a pre-trial detainee whose sentence has not been finalized can only be detained for a maximum of six months in the first trial. If this period expires, they can be released even during the trial, and they cannot be re-arrested for the same charges.

Promises to Compensate Victims and Victims' Anger

During the bail hearing, Mr. Nam stated that he would sell five real estate properties under a corporate name to compensate the victims.

He expressed, "I feel very sorry and heartbroken that the victims have suffered," adding, "I was unable to sell our properties while being detained. Once I am released, I will actively sell them and repay the compensation."

Mr. Nam's legal representation claimed, "The defendant's elementary school child is suffering from extreme anxiety to the point where the child cannot go out without wearing a mask," and asserted, "Releasing the defendants does not pose a flight risk or concern for evidence destruction."

However, victims of the fraud could not hide their feelings of dejection upon hearing the news of the couple's release.

One victim expressed, "We have struggled to capture these criminals who fled with our deposits and lived a luxurious life in hiding, and I want to ask if it's right to release criminals who have a history of fleeing back into society as if nothing happened."

Attorney Cheon Ho-seong, representing the victims, also noted, "So far, there have been no requests for settlement, and no substantial compensation has been made, raising doubts about whether it is appropriate to release the defendants on bail."

Notably, it was revealed that during the early stages of their life in hiding in the U.S., the couple lived in a luxurious home in the Atlanta area and sent their child to a prestigious private school, further fueling the anger of the victims.

What is even more tragic is that one victim, who was unable to recover a deposit of 80 million KRW, took their own life in 2023.

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