With Activation Lock set, this iPhone is indistinguishable from a lost or stolen iPhone, if not actually a lost or stolen iPhone.
You cannot re-create an existing Apple ID.
This iPhone will never be useful to you without the password for the Apple ID associated with Activation Lock, or without the recovery key if that was set on the Apple ID.
Nothing else you can do will clear this. You need that password, or that recovery key, or original proof of purchase.
Return to the seller for a refund, or present original proof of purchase to Apple, or recycle.