Posing as Experts, Fraudsters Sell Conservation Mountain Area Land 53 Times Over—Economic Broadcasting Scam Ring Caught

[Financial News] A group of speculative real estate company operators who appeared as real estate experts on economic broadcasting and sold undevelopable land by falsely advertising it as a future development site have been apprehended by the police. They exploited the credibility of the broadcasts to recruit investors and sold land at prices dozens of times higher than market value, amassing 2.2 billion KRW.
The Financial Crime Investigation Unit of the Metropolitan Investigation Unit at the Seoul Metropolitan Police Agency (SMPA) announced on October 31 that it had arrested 36 individuals, including A (45), the head of a speculative real estate company, on charges of fraud, unregistered multi-level marketing, and violations of the Personal Information Protection Act.
According to the police, from April 2021 to August 2023, A deceived buyers by selling Conservation Mountain Area land in the Sejong Special Self-Governing City region as if it were soon to be developed. He had employees, including B (40), appear as real estate experts on six economic broadcasting channels to conduct investment consultations. Despite being introduced as an expert, B had no academic background or expertise in real estate and simply followed a pre-written script during the broadcasts.
The group reportedly signed sponsorship contracts with outsourced production companies for several months at a time, enabling them to appear repeatedly on air. Through these broadcasts, they provided viewers with false information such as 'planned large-scale tourism complex development site' and 'area designated for national projects,' selling the land at inflated prices. In reality, the land was Conservation Mountain Area where development was restricted for reasons such as landscape preservation, but they misled victims by claiming the restrictions would soon be lifted.
Police investigations revealed that they sold land, which was worth 17,311 KRW per pyeong, for up to 934,444 KRW per pyeong—53 times the market price—reaping enormous profits. Many victims invested based on the credibility of the broadcasts and the supposed expertise of the presenters. There were 42 victims in total, with combined losses amounting to 2.2 billion KRW. One victim alone suffered a loss of 130 million KRW.
Three individuals, including C (41), the head of an outsourced production company, were booked for collecting 1,379 pieces of personal information—such as viewers’ names and contact details—during broadcast consultations and providing them to the speculative real estate company without the data subjects’ consent. While it was confirmed that the outsourced production company handed over personal details without victim consent, the broadcasting company itself was reportedly unaware of the fraud.
All 36 suspects, including A, are currently being investigated without detention. A police official stated, 'This is a speculative real estate fraud case that deceived an unspecified number of people by abusing the credibility of broadcasts.' The official added, 'We will continue to crack down on real estate crimes that generate excessive profits through false development information.' The police also advised, 'Prospective buyers should check parcel information in advance and verify authenticity through on-site visits or local real estate agents. If a property is being resold at a price significantly higher than the most recent transaction, it should be treated with suspicion.'
425_sama@fnnews.com Choi Seung-han Reporter