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"I was a victim of jeonse (lease deposit) fraud, but the real estate agent insists 'I'm not responsible.'" This is one of the most common situations jeonse fraud victims face. When the agent who drafted the contract denies liability by saying "I didn't broker the deal," it can feel as if the victim must chase the vanished fraudster alone. However, a recent Korean Supreme Court ruling held that even an agent who drafted a lease contract without actually brokering it can be liable for damages to the victim.

[Contents]

1. Does "I didn't broker it, so I'm not liable" hold up?

2. What counts as a breach of the agent's duty of care

3. Liability without intent — "aiding" under civil law

4. The agent and the mutual-aid association can both be sued

5. Securing evidence decides the case

1. Does "I didn't broker it, so I'm not liable" hold up?

In one case, a fraud ring put forward a fake tenant, forged a lease contract, and used it as collateral to take out a jeonse deposit loan, pocketing the money. The problem was that the licensed agent drafted and handed over the lease contract on the fraudster's word alone, without actually brokering the transaction. Only the victim who trusted that contract suffered the loss. The court recognized this agent's liability for damages to the victim.

2. What counts as a breach of the agent's duty of care

Under the Licensed Real Estate Agents Act, an agent may draft and deliver a transaction contract only when the brokerage is complete. Creating and handing over a contract without brokering at all breaches the duty of care set by that Act. The court further found that the agent could reasonably foresee that someone might rely on the contract and enter into a transaction.

3. Liability without intent — "aiding" under civil law

The key is liability for "aiding" (bangjo). While criminal aiding requires intent, aiding a tort under civil law can arise from mere negligence, not intent. In other words, even if the agent did not conspire with the fraudster, if they breached their duty of care and made the fraud easier, they can share liability for damages alongside the fraudster.

4. The agent and the mutual-aid association can both be sued

The defendant is not only the fraudster. You may claim damages against the negligent agent personally and the mutual-aid association (gongje) the agent joined. That is why—even if the fraudster has vanished or has no assets—you must check whether there is another solvent party who can be held responsible.

5. Securing evidence decides the case

That said, proving the causal link between the agent's fault and your loss is decisive. So it is crucial to preserve evidence available early on—the contract, text messages, and call recordings. If you lost a jeonse deposit, review at the outset whether there are parties beyond the fraudster who can be held liable.

Jeonse fraud is not a fight against the fraudster alone. An agent who tries to escape by saying "I didn't broker it" can still be held responsible. Cheongchul Law Firm supports victims' recovery with strategies proven in court. If you are struggling with a jeonse deposit refund or a damages claim, consult with Cheongchul's real estate dispute attorneys.

This post is for general legal information only and does not constitute legal advice on any specific matter. Outcomes vary with the facts of each case, so please consult an attorney.