South Korea Supreme Court says motel rent tied to prostitution must be forfeited

South Korea's Supreme Court ruled that a building owner who knowingly leased a motel used for prostitution must forfeit the full amount of rent collected as criminal proceeds. The decision overturned an appeals court outcome that had kept a one-year prison term, suspended for two years, but cancelled forfeiture, and it sent the case back to the Seoul Central District Court. The case centered on a construction company head identified as A, who bought a motel property in Seoul's Gwanak district in May 2017, inherited the existing lease with tenant B, and was later indicted for providing a location for prostitution from July 2019 to October 2022 after continuing the lease despite knowing B had been ordered to shut down for arranging prostitution. The Supreme Court said rent received for providing land and a building with that knowledge counts as profit obtained through prostitution-related acts under the Act on the Punishment of Arrangement of Commercial Sex Acts, meaning the entire rent amount is subject to forfeiture even if the motel also served ordinary guests.

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