Gyeongsan Officetel Scam Leaves 150 Young Tenants Out of Pocket

A rental deposit scam has defrauded over 150 young tenants, including university students, in Gyeongsan, South Korea, resulting in an estimated loss of 1 billion won (approximately $700,000 USD). The victims are facing the loss of their security deposits, ranging from 5 million to 10 million won per household.

The scheme unfolded after the property owner transferred ownership of the A officetel building to a trust company. Despite this transfer, the owner proceeded to enter into rental agreements without the trust company's authorization. Consequently, tenants were directed to deposit their monthly rent and management fees into the rental company's account, rather than the designated trust company's account.

The trust company had posted notices on the officetel building, informing residents about the seizure of the rental company's existing bank account and instructing them to make future payments to the trust's account. However, this notice appears to have been insufficient to prevent the scam.

Choi Seong-jun, head of the Gyeongbuk Jeonse Fraud Victims' Committee, stated that over 100 victims have gathered in an online chat group. The victims plan to file a fraud complaint against the rental company and are demanding that the trust company present a solution for the recovery of their deposits.

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Currently, about 100 victims have gathered in the group chat, and we plan to file a complaint against the rental company for fraud, and we are demanding that the trust company come up with a plan to resolve the deposits.