hankyoreh

By Kim Kwang-soo, Busan correspondent
North Korean defectors have been arrested on charges of using a real estate scam to glean money from other refugees from the North.
The international crimes investigation squad in the Busan Metropolitan Police Agency arrested a 43-year-old defector (identified by the surname Lee) on Oct. 30 for fraud. Lee allegedly took large amounts from other defectors investing in a Chinese real estate development project, telling them they would be repaid the principal and bonuses once more investors were recruited.
Fifteen defectors, including a 44-year-old identified as Hong, were booked without detention, and a hunt began for a 51-year-old Chinese suspect identified as Li.
Lee and accomplices are believed to have earned roughly 5 billion won (US$4.6 million) by fleecing 155 defectors living in South Korea between January 2010 and April 2012. They alleged told the victims that after investing in up to three accounts for a real estate development project by the Chinese government (at 30 million won, or US$27,500, per account), they would receive their principal back plus several million won in bonuses per person once more investors had been found.
They are believed to have taken advantage of the defectors’ lack of awareness about practices in South Korea and overseas. In particular, they obtained the funds without signing contracts, telling the targets that the money was invested by a Chinese proxy because of Chinese limits on investments by foreigners, and showing them pictures and pamphlets for apartments currently under construction in China while explaining that the Chinese government was behind the project.
They were also found to have used common pyramid scheme tactics. Defectors who invested 30 million won were paid 3 million won a month later and told they would not receive the remaining 27 million won when they found other investors.
　
Please direct questions or comments to [english@hani.co.kr]