Daejeon Court Hands Down 8-Year Sentence to 'Jeonse' Fraud Perpetrator on Appeal

An 8-year prison sentence has been handed down in the appeal trial of Mr. A, a man in his 40s accused of defrauding victims of approximately 14.4 billion won through "jeonse" (housing lease deposit) scams. Mr. A is suspected of deceiving 127 victims in the Daejeon area over a period of about two years, starting in 2021, and absconding with around 14.4 billion won in deposit money. He allegedly committed the crime without the ability to repay the deposits, having used a zero-capital gap investment strategy to build multi-family housing.

In the first-instance sentencing hearing held in February, the presiding judge announced a sentence of "8 months in prison" for the main perpetrator, Mr. A. However, a few days later, the judgment document received by the defense stated the sentence as 8 years. The judge had misread the number. Mr. A's side argued that the verbal sentence delivered in court should take precedence and demanded the judgment be amended. According to legal provisions, the judgment document was amended, and the first-instance sentence was finalized as 8 months in prison, as originally read in court.

The prosecution immediately appealed, arguing that an 8-month sentence was "too lenient." The appellate court accepted the prosecution's argument. The court stated, "The defendant's crime is very serious, having defrauded multiple victims, who are economically vulnerable, of approximately 14.4 billion won." It added, "Despite orchestrating the crime, the defendant has been evading responsibility by claiming his role was merely supplementary, even up to the second instance." Appeals filed by two accomplices were both dismissed, with their first-instance sentences upheld.