Banks and Ordinary People Deceived... Gang Sentenced to Prison for Illegally Obtaining 1.2 Billion Won through 'Jak-eop Daechul' Loans

Business card-type flyers of loan companies found in a traditional market in Seoul. (Photo by Jeong Jun-young)

[Asia Economy Yeongnam Reporting Headquarters Reporter Ju Cheol-in] A group involved in illegal loans amounting to 1.2 billion won has been sentenced to imprisonment.

Judge Cho Hyun-wook of the Changwon District Court Criminal Division 3 announced on the 2nd that A (35), who was tried on charges of illegally borrowing 1.2 billion won through so-called 'jageop daechul' (fraudulent loans), was sentenced to 3 years and 6 months in prison.

Additionally, B (36) and C (37), who were also tried on the same charges, were sentenced to 1 year and 2 months and 1 year and 6 months in prison, respectively.

From March 2017 to August 2019, they received 1,219,100,000 won in loan money over 187 transactions from 16 lending banks.

The method they used exploited the lax loan screening system of financial institutions, which conducts reviews based on documents and phone investigations without on-site verification of the loan applicant's workplace existence and employment status. This is known as 'jageop daechul' (fraudulent loans).

They recruited people in urgent need of cash, had them provide false personal information to the lending banks to obtain loans, and then took a certain amount as a commission fee.

Judge Cho stated, “The method of the crime is highly reprehensible, and since it was carried out in an organized and planned manner, it caused disruption to the financial order.”

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