Fourth victim of rental deposit fraud found dead

Social Affairs

Published: 11 May. 2023, 18:12 Updated: 11 May. 2023, 18:45

Fourth victim of rental deposit fraud found dead

Multi-complex houses in Gangseo District, western Seoul on May 3 [NEWS1]

Another victim of a major real estate scam that rendered thousands of tenants in Korea unable to reclaim their rental deposits was found dead in her residence earlier in the week.

According to the police on Thursday, a 30-year-old woman, identified by her surname Lee, was found dead in her residence in Mok-dong, Yangcheon District on Monday.

Her body was found after Lee’s family told police they were unable to reach her.

“There are no signs of murder nor suicide as of now,” the police said.

The police requested an autopsy of the body at the National Forensic Service to figure out the exact cause of her death.

According to the police, Lee was one of the many tenants who could not reclaim her jeonse deposit from a notorious landlord dubbed the "Villa King."

Jeonse refers to a system in which a very large refundable deposit is paid upfront for rent-free or reduced-rent occupancy for a fixed period.

Lee lived alone in a residence in Yangcheon District after signing a rental contract with the 42-year-old landlord — surnamed Kim — in June 2021, paying 300 million won ($225,000) as a lump-sum deposit. Kim died last October.

He has purchased a total of 1,139 homes in the greater Seoul area from 2020 to 2022, taking advantage of the jeonse system by using one deposit to purchase another apartment. When he died last year, he owned 6.2 billion won in comprehensive real estate taxes.

Victims of the jeonse fraud scam grieve the loss of another victim during a press conference held in front of the National Assembly building in Yeouido, western Seoul on Thursday. [NEWS1]

On Thursday, a group of rental fraud scam victims lamented the death of another victim, asking for the enforcement of an applicable law that will actually help victims.

“I ask the government to step up and help the victims who cannot resolve the issue solely by themselves,” a victim of the jeonse fraud scam living in Suwon, Gyeonggi said during a press conference held in front of the National Assembly building.

The People Power Party and the Democratic Party (DP) on the same day agreed to convene a plenary meeting on May 25 to enact a special law that could help rental scam victims.

The enactment of such a law has been postponed due to a clash between the two parties over several matters, including which rental fraud victims would be qualified for support.

“The floor leaders of both parties will make efforts to come to an agreement quickly as a fourth victim [was reported to have] died today,” the DP’s floor spokesperson Lee So-young said.

Lee’s death marks the fourth death of the jeonse fraud scam victim this year.

Another woman in her 30s living in Michuhol District, Incheon died last month after being unable to receive back the rental deposit she paid in 2019 to another landlord who took advantage of the system.

A man in his 20s was also found dead in a house in the same district last month and another man in his 30s in a multi-family house located in the same district in February.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]