South Korean Landlord Sentenced to 2 Years for $10 Million Rental Deposit Scam

A 40-year-old landlord has been sentenced to two years in prison for orchestrating a large-scale rental deposit scam, defrauding 47 tenants of approximately 13.8 billion won (about $10 million USD). The Cheongju District Court handed down the sentence on June 28 for fraud charges against the individual, identified as A 씨.

Operating as a landlord with a portfolio of 353 properties primarily in the Gyeonggi Province, A 씨 allegedly colluded with real estate consultants. Between July 2021 and April 2022, the landlord is accused of setting rental deposit amounts significantly higher than the actual market value. A portion of these inflated deposits was then allegedly funneled back to the landlord and others involved as kickbacks.

The court acknowledged the severity of the crime, noting that the defendant engaged in "jeonse scams" targeting numerous victims and made no effort toward restitution. However, the judges also took into account that the majority of the victims were able to recover their substantial losses through deposit insurance policies. The court's final sentencing decision considered these factors, including the motive behind the crimes and the circumstances following the offenses.