– Real estate agents are also involved in real estate crimes. How can we prevent damage?

“I lost my 350 million won deposit.”

“I put all my money on the line to rent a place, but I got kicked out without getting my deposit back.”

“I trusted the real estate agent, but he was involved in a crime.”

The real estate market has been plagued by a steady stream of victims' cries. Lifelong savings are disappearing in an instant as a result of transactions with untrustworthy brokers, becoming a reality.

Carrot Fake Listing Fraud: 51 Fresh Graduates Lost 350 Million Won in Deposits

In July, the Mapo Police Station in Seoul arrested a fraud ring that had posted false listings on Carrot Market and embezzled deposits.

They provided the victims with their actual business addresses and access passwords to dissuade them from their activities, and then impersonated real estate agents using forged electronic contracts and fake business cards.

Between February and June 2025, 51 young adults in their 20s and 30s, who were just starting out in society, were victimized, suffering a total loss of 350 million won. The scheme was sophisticated, with some victims even resorting to threatening to create pornographic material when they demanded the return of their deposits. Police have arrested and indicted two individuals responsible for the organized crime group on charges of fraud and violation of the Sexual Violence Punishment Act, and are continuing their investigation into the higher-ups.

A king of jeonse with 563 properties... Damages alone amount to 115 billion won.

Mr. Shin, nicknamed the "Jeonse King," purchased 563 villas and officetels in Seoul, Gyeonggi Province, and Incheon between 2020 and 2022, recruiting tenants with deposits exceeding market rates. He then disappeared without returning the deposits, and many of the victims were evicted without receiving their deposits.

The damages amounted to approximately 115 billion won, and 27 people, including licensed real estate agents and real estate consultants, were confirmed to have been involved in the scheme. Some brokers knowingly set higher-than-market jeonse prices while collecting commissions and brokering transactions, and they are also under investigation. Mr. Shin was arrested on fraud charges in September 2023.

Choosing a reliable brokerage is essential to prevent accidents.

Real estate transactions are significant contracts, with transactions ranging from hundreds of millions to billions of won. However, the choice of a brokerage is often based on simple factors like location or the broker's friendliness. The problem is that, in the event of an accident, brokerages often evade responsibility or disappear for reasons such as closure. In particular, transaction structures that rely solely on individual brokers make it difficult to respond when an accident occurs, and the damage is passed on solely to the consumer.

To reduce these risks, dealing with a brand-based brokerage with a headquarters-level verification and management system can be an alternative.

Remax, a global real estate franchise, is a global brand with over 145,000 agents operating in 110 countries worldwide. Its headquarters-led training, qualification verification, and transaction review systems systematically manage individual agent misconduct and mistakes.

To enhance transaction security, Remax is also pursuing the introduction of a deposit-substitute monthly rental contract service and title insurance through MOUs with insurance companies and legal entities. This will allow some tenants to enter into monthly rental contracts with no deposit, lowering the barrier to entry and reducing the risk of deposit-related fraud.

Things Consumers Should Check When Transactions in Real Estate

With the recent surge in damages caused by fraudulent listings, double-dealing, and brokers' evasion of responsibility, consumers' self-verification efforts are becoming increasingly important. In an online platform environment where anyone can easily list a property, standards are needed to enable consumers to verify the authenticity of transactions.

Here are some key things to check before trading:

- Confirm the real estate agent registration number, real name, and office address.

- Be suspicious of listings that are excessively cheaper than the market price.

-Compare the electronic contract link and the name of the deposit account.

- Check if the brokerage is trustworthy, such as a Remax brand.

The brokerage may be small, but the transaction amounts are by no means small. In real estate transactions, trust is not an option, but a prerequisite, and finding a trustworthy partner is the starting point for a safe transaction.

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