A Gangwon Province developer implicated in a major Incheon jeonse fraud scheme has received an 18-month prison term, suspended for two years, in the appellate court over allegations of receiving undue favors in a prime real estate project.
Appellate Court Increases Penalty
The Seoul Central District Court Criminal Division 8-2, presided over by Judge Choi Hae-il, resentenced Nam Mo, 64, on March 22. This followed an initial first-instance ruling of one year imprisonment, also suspended for two years. The court escalated the base sentence to one year and six months due to evidence of irregularities in Nam’s designation as the preferred bidder for the Donghae MangSang District 1 development in the Gangwon Free Economic Zone.
Officials determined that Nam misrepresented key documents submitted to Donghae City officials, including falsified content on investments and sales. Despite lacking substantive verification, the city approved his project status, prompting the court to deem it an improper selection process.
Project Details and Special Treatment Claims
Nam secured designation for the ‘Donghae City’ special apartment construction project in 2017. He later acquired 1.78 million square meters (about 537,000 pyeong) in the Donghae area across 143 locations. Company records show initial investments of 5 billion won across five entities, raising questions about the legitimacy of his preferential treatment.
The appellate panel stated, “Nam’s submissions contained false details on project operations, yet the Free Economic Zone committee approved them as legitimate. Without proper content in the operating project, designating MangSang 1 as his development was unjustifiable.”
Prior Fraud Incidents
Nam faces additional scrutiny for past misconduct. He previously handled sales for 2,700 units in Incheon and Ganggi areas, pocketing around 589 million won in buyer deposits. In another case, a 2022 Incheon Michuhol-gu apartment and villa project saw him retain 68 million won in jeonse deposits, resulting in a seven-year-delayed ruling last January.
On August 29, 2024, during an Incheon Michuhol-gu jeonse fraud investigation, Nam and related executives were indicted for large-scale fraud impacting numerous victims.
