An officetel bought by a Busan police officer one day... 'Difficulty' involved in charter fraud

A officetel in Banyeo-dong, Haeundae-gu, Busan, where 25 generations of young people took away about 5 billion won in deposit for rent (International Newspaper on the 8th) Report on page 4) It was confirmed that former and current officers of the Busan Police Agency bought the shopping mall on the same day. The police explained that they received this officetel instead when they were unable to repay the money they had lent to the real estate developer.

A view of the Busan Metropolitan Police Agency. International Newspaper DB
According to the international newspaper coverage on the 11th, the names of former and incumbent police officers appeared in a total of 10 rooms in the registered copies of 80 officetel rooms. There are a total of 5 people, including 4 superintendents (3 current positions, 1 former position), who are at the level of the chief of the police station, and a superintendent (1 current position) who is the frontline team leader. Three incumbent executives own five rooms, including a shopping mall. Another incumbent superintendent had three rooms and sold them all from September 2020 to November 2021. The retired superintendent is listed as a creditor who has set up mortgages on two rooms.

The day they traded officetels is the same as April 16, 2018. Residential units were sold for 220 million to 256.87 million won, and commercial units were sold for 989.36 million won. In 2018, the pre-sale price was 240 million to 260 million won, and the transaction took place around this price. The incumbent superintendent who sold the three rooms sold them for about 30 million won cheaper than the transaction price at the time of purchase. The incumbent inspector who owns the two rooms has registered them as private rental housing.

Mr. B, the owner of the building, explained that he traded 오피스타 officetels for the purpose of repaying the money he borrowed from the police. When he built this building, he borrowed money from them, but there was no way to pay it back in cash due to poor sales performance. Mr. B said, “I tried to repay the borrowed money by selling the officetel, but I couldn’t. Instead of deducting the debt, he borne the money registered in the trust of my corporation (about 180 million won per room), and bought an officetel with their own money on top.”

The transaction was completed about 5 months before the announcement of the 'Comprehensive Measures for Real Estate on September 13, 2018', and at that time, the whole country suffered from a frenzy of overheating of the real estate market and gap investment. click here In addition, Banyeo-dong was in a situation where favorable development was expected, such as the approval of the Ministry of Land, Infrastructure and Transport for the Centum 2 district development plan in 2016.

Some point out whether it was appropriate for high-ranking officials to receive buildings instead of money they invested and lent to real estate agents. A former superintendent who did not purchase the building said, “This is a person I knew, and I lent 130 million won because I needed business funds, and then lost money. However, receiving a building instead of money did not look good as a public official.” Other superintendents said, “There was no recourse other than asking for the building. No one made a profit from this transaction, including monthly interest payments, as much as they invested with bank loans. We are victims too.”

Mr. B, who made a kite with the police from the time of the officetel construction plan, said, “We got to know each other naturally while living in society. He has nothing to do with business,” he said.

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