Debt, suicide, fraud: South Koreans hit by real estate scams

Debt, suicide, fraud: South Koreans hit by real estate scams

SEEOUL: For ten years, Park Hyeon-su worked double shifts and saved every penny for a loan on a lovely home in a windowless micro-apartment in Seoul. Therefore real estate con artists stole his wealth.

In South Korea, residents pay large deposits, maybe hundreds of thousands of dollars, and then sit rent-free for years before receiving all of their cash back when they move over. This unique system is known as “jeonse” in the rental housing market.

The concept is that landlords get access to interest- completely funds for debate, and tenants get free casing, with the property as collateral. However, the system is currently fraught with fraud; according to authorities data, more than a billion dollars are lost annually to jeonse schemes.

In the 1990s, the program accounted for two-thirds of the rental market, but it has since lost acceptance, primarily as a result of rising knowledge of the dangers.

Park claimed to frequently work in basic delivery-related work from 9am to nightfall to save US$ 73, 000. However, after he had paid a payment and moved in, Park was evicted and given no way to get his money back. It turns out that his claimed landlord had never had the right to rent the property.

It was not just money, he told AFP, but “my full 20s and early 30s” that was stolen, and while legitimate trials are ongoing, he is very unlikely to acquire compensation.

” My vision of owning a house has vanished, and I’ve given up on dating, not to mention getting married or having a child”, said Park, 37, who uses a moniker for his jeonse engagement to defend his protection.