The Only Way to Vacate the House: Third Death Related to Jeonse Fraud in Incheon

A jeonse fraud victim in his thirties was found dead in his apartment in Michuhol-gu, Incheon on April 17. On the front door, signs are posted announcing that the home was involved in jeonse fraud. Three jeonse fraud victims in Incheon including this man committed suicide. Mun Jae-won

Several jeonse (housing lease on a lump-sum deposit) fraud victims in Incheon have taken their own lives. The latest was the third suicide. The late victims in their twenties and thirties faced financial difficulties after their houses were put up for auction and they were unable to get back their jeonse deposits. The government has released various measures, but their effectiveness is questionable.

The Michuhol Police Station in Incheon announced that they discovered A (31) unconscious in a residential and commercial building in Michuhol-gu at around 2:12 a.m. April 17. A died while being transported to the hospital.

White chrysanthemums are placed before the home of a jeonse fraud victim, who was found dead. Yonhap News

A first signed a jeonse contract with a deposit of 72 million won, then renewed the contract for 90 million won in September 2021. However, the apartment A lived in was involved in jeonse fraud and all sixty apartments in the complex were put up for auction last June. A was unable to get any of his jeonse deposit back. A group seeking measures for the victims of jeonse fraud in Michuhol-gu said, “A had a tough time because of the loss from jeonse fraud.” In the garbage bag in front of A’s house, there was a yellow warning sticker notifying him of unpaid water bills.

B (26), another victim of jeonse fraud, ended his life on April 14. B also failed to pay his water bills and suffered from extreme financial hardships. He once asked his mother to lend him 20,000 won.

On February 28, C (38) killed himself in a villa in Michuhol-gu after he failed to get back his 70 million won jeonse deposit. C couldn’t get any of his deposit back and he was unable to get the bank to extend his loan.

The victims’ group announced that there were more than 2,800 households that fell victim to jeonse fraud in Michuhol-gu alone. Among them more than 800 homes have already been auctioned.

A considerable number of jeonse fraud victims were connected to the “Incheon construction king”. The Incheon construction king owned 2,700 houses in Incheon and Gyeonggi-do and is currently on trial after being arrested and charged for not returning 12.5 billion won of jeonse deposits to 161 tenants.

The central and the local governments took action, extending the loan period of the victims and providing emergency housing, but they have not been effective. The city of Incheon prepared 238 emergency residences for jeonse fraud victims in February, but so far only 3% (8) of the homes are occupied.

The victims’ group plans to hold a memorial service to comfort the deceased victims at Juan Station, Incheon at 7 p.m. April 18, which marks the 49th day after the death of C, the first jeonse fraud victim to die. They will also launch a national group for the victims of jeonse fraud and ggangtong jeonse (“empty can” contracts referring to homes where the sum of the jeonse deposit and the mortgage on the house is higher than the property’s value) to urge active support from the government.