"I'll Pay Instead"... Insurance Agent Embezzled 500 Million Won in Cousin's Premiums

Used Money Received Under the Pretext of Payment for Personal Use
Court: "The Guilt of Betraying Trust Is Serious"

[Asia Economy Reporter Choi Seung-woo] A man in his 40s who worked as an insurance planner and embezzled approximately 500 million won in insurance premiums from his cousin was brought to trial and sentenced to imprisonment.

The Criminal Division 1 of Wonju Branch, Chuncheon District Court (Presiding Judge Shin Gyo-sik) announced on the 19th that it sentenced Mr. A (43), who was indicted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison and ordered his detention in court.

In January 2017, Mr. A advised his second cousin, athlete Mr. B, to subscribe to multiple pension-type insurance products for financial management purposes.

However, Mr. A received about 6.4 million won in cash for seven months’ worth of insurance premiums from Mr. B and used it for personal purposes. The total amount of insurance premiums embezzled by Mr. A in 21 instances until August 2020 reached approximately 522 million won.

[Image source=Yonhap News]

Investigations revealed that Mr. A committed the crime by holding cash and funds received via accounts under the pretext of paying insurance premiums on behalf of Mr. B, who was active abroad and in provincial areas.

During the investigation, Mr. A was also accused of embezzling an additional 8 million won in insurance premiums from Mr. B. However, the court ruled not guilty on the additional charges, citing that the insurance product had been canceled and that Mr. B had fully recovered the 8 million won.

Regarding the sentencing, the court stated, “Betraying the victim’s trust and using all the money received in the course of duty for personal reasons is a serious offense,” and added, “Not only did the defendant fail to compensate the victim, but he also did not receive forgiveness.”

However, the court also considered mitigating factors, stating, “The defendant admitted to the crime, repaid 77 million won to the victim, has no prior convictions for similar offenses, and no criminal record exceeding fines.”

This content was produced with the assistance of AI translation services.