South Koreans suffer from real estate scams leading to debt, suicide, and fraud

Seoul – For a decade, Park Hyeon-su lived in a windowless micro-apartment in Seoul, working double shifts and saving every penny for a deposit on a nice home. Then real estate scammers took his money.

South Korea’s rental housing market features a unique system known as jeonse in which tenants pay huge deposits — sometimes hundreds of thousands of dollars — then get to live rent-free for years, before getting all their money back when they move out.

The system, once popular in the ’90s, has now fallen out of favor due to the prevalence of fraud. Police data suggests that more than a billion dollars is lost to jeonse scams every year.

Park, a victim of such a scam, worked tirelessly to save up $73,000 for a deposit, only to have his purported landlord disappear, leaving him evicted and without any hope of getting his money back. This has not only affected his financial stability but also his personal life, as he has given up on his dream of owning a home, dating, and starting a family.

Sadly, Park is not alone. Official data shows that at least 17,000 people have been victims of jeonse fraud in recent years, with many in their 20s and 30s. The situation has become so dire that at least eight victims have taken their own lives.

Activists are calling for more support from authorities to help victims and punish fraudsters. The government has introduced a bill to provide interest-free loans to victims, but many argue that this is not enough.

As the National Assembly prepares to vote on a bill to address this issue, victims like Choi Jee-su, who had his life savings stolen by scammers, are urging the government to take action. Jeonse fraud is not just about financial loss, but about shattered dreams and destroyed lives. It’s time for authorities to step up and protect the vulnerable tenants who have been preyed upon by these scammers.