Incheon 'Geonchukwang' Sentenced to 15 Years in Additional Trial for Embezzling Jeonse Deposits from 372 Houses

15 Out of 30 Accomplices Acquitted
Cleared of Criminal Organization Charges as Well

The so-called 'Construction King,' who was sentenced to 7 years in prison by the Supreme Court for a jeonse fraud case in Incheon, has been handed a heavy sentence for additional fraud charges amounting to approximately 30.5 billion won.

The Criminal Division 14 of the Incheon District Court (Chief Judge Son Seung-beom) sentenced Nam Mo (63), who was indicted on charges including fraud and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to 15 years in prison at the sentencing hearing on the 20th, according to Yonhap News Agency. The court also acquitted 15 of the 30 accomplices, including licensed real estate agents and brokerage assistants, and sentenced the remaining defendants to 6 months to 1 year and 6 months in prison with a 2-year probation.

Nam and others were brought to trial on charges of embezzling 30.5 billion won in jeonse deposits from tenants for 372 apartment and villa units in the Michuhol-gu area of Incheon between 2021 and 2022. Nam is also accused of embezzling a total of 11.7 billion won in company funds, including diverting 4 billion won in construction payments for newly built apartments from a construction company in January 2018 to secure land for the Donghae Mangsang District project. Investigations revealed that Nam used the embezzled construction payments to cover the jeonse deposits, triggering a chain of auctions on owned properties and non-payment of jeonse deposits.

The total amount of jeonse fraud charges against Nam and his group is 53.6 billion won (665 units), but only the 30.5 billion won fraud charges were addressed in this trial. The court recognized only 17.4 billion won of Nam’s fraud amount and acquitted the defendants of charges related to criminal organization and violations of the Licensed Real Estate Agents Act.

Regarding the recognized amount of charges, the court explained, "Only the amounts of new contracts or increased contract amounts in the lease deposits were considered as embezzled, and contracts renewed at the same amount were judged as not guilty." It added, "While it can be seen that Nam was aware from March 20, 2021, that the lease deposits could not be returned on time, it cannot be concluded that other employees were aware of the financial deterioration." The court also pointed out, "Nam’s crimes not only adversely affect the local economy but also significantly damage trust in the jeonse market, causing extensive derivative harm. However, the defendant shamelessly claimed in court that he was trying to help the tenants."

Regarding the sentencing rationale, the court stated, "The victims of the jeonse fraud have petitioned for severe punishment, and the defendant’s crimes include embezzlement and submitting forged private documents to the court, which are highly condemnable," but also noted, "Some victims have been compensated, and considerations were made for fairness if the sentence were to be handed down simultaneously with the Supreme Court’s confirmed ruling on the first indictment." Previously, in the October sentencing hearing last year, the prosecution sought life imprisonment for Nam and 2 to 10 years in prison for the 30 accomplices.

Nam was first indicted on jeonse fraud charges amounting to approximately 14.8 billion won involving 191 victims, for which the Supreme Court confirmed a 7-year prison sentence last month. He is currently undergoing a separate trial for additional fraud charges amounting to about 8.3 billion won involving 102 victims. He was known as the Construction King for owning 2,700 units of apartments and officetels in Incheon and the Gyeonggi Province area.

This content was produced with the assistance of AI translation services.