Loan brokers who obtained 3 billion KRW through 'Hetsallon' loans, including ineligible applicants with forged documents...
Seoul Nambu District Prosecutors' Office Indicts Five Including Loan Brokers
[Asia Economy Reporter Yoo Byung-don] A group that manipulated documents to obtain tens of billions of won in loans under the low-income financial product 'Haetsal Loan' has been brought to trial.
On the 24th, the Criminal Division 5 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Park Eun-hye) announced that five people, including loan broker Mr. A, were indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and other offenses.
According to the prosecution, they are accused of recruiting 261 unqualified loan applicants through Facebook advertisements and other means, forging documents such as health insurance certificates, and obtaining loans worth approximately 3.054 billion won from 23 financial institutions.
The Haetsal Loan is a product that guarantees up to 90% of the loan amount with government funds so that employees with low credit ratings who suffer from high-interest loans can borrow at lower interest rates. It was investigated that Mr. A and his group exploited the lax verification of the authenticity of submitted documents during the Haetsal Loan loan and guarantee screening process, which is a low-income financial product.
The group took a 30% commission under the pretext of fees when the borrowers received the loan funds.
The prosecution expanded the investigation after detecting signs of loan brokers' involvement while investigating a fraud case involving one unqualified borrower who received a loan of about 15 million won, which had been handed over by the police.
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A prosecution official explained, "We shared opinions with the Korea Inclusive Finance Agency to improve the loan screening process and notified the list of 261 borrowers," adding, "The Korea Inclusive Finance Agency and the relevant financial institutions plan to take legal actions such as recovering improper loan funds and filing criminal charges against fraudulent borrowers."
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