Changwon District Court Sentences 30s Man to 3 Years 5 Months for Embezzling Large Sum in Bank 'Work Loans'

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] A man in his 30s who was indicted for receiving 140 million won in loans from financial institutions through so-called 'work loans,' which increase another person's credit rating, was sentenced to a heavy prison term in the first trial.

The Changwon District Court Criminal Division 4 (Presiding Judge An Jwa-jin) announced on the 3rd that it sentenced Mr. A, who was tried for fraud, to 3 years and 5 months in prison.

In August 2017, Mr. A was introduced to a loan nominee by an accomplice and fabricated an income verification document as if this person worked at a convenience store located in Changwon, Gyeongnam, receiving 3 million won from a savings bank under the pretext of a loan. Using this method, from mid-2016 for about a year, he was prosecuted for embezzling approximately 139 million won in loan funds over 24 occasions.

It was revealed that Mr. A habitually used the so-called 'work loan' method, which raises the credit rating of the loan nominee to a level where money can be borrowed through document and phone investigations without on-site financial institution inspections.

The court explained the sentencing reason, stating, "'Work loan' fraud is one of the worst types of fraud crimes, and the amount involved is also huge."

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