Illegal 700 Million Won Loan Through Abuse of Youth Jeon-Wolse Loan System... Broker and Recruiter Sentenced to 3 Years Imprisonment

A broker and a recruiter who exploited the youth customized jeonwolse (monthly rent) loan system by signing false jeonwolse contracts and illegally borrowing 700 million won were sentenced to three years in prison.

According to the legal community on the 6th, the Criminal Division 11 of the Seoul Western District Court (Chief Judge Bae Seong-jung) sentenced loan broker Mr. A (34) and recruiter Mr. B (32), who were indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison on the 22nd of last month. Thirty-one landlords and tenants who signed false contracts were fined. The prosecution sought six years imprisonment for Mr. A and five years for Mr. B.

It is known that Mr. A exploited the fact that the youth customized jeonwolse loan screening was conducted non-face-to-face from February to August last year, signing fake jeonwolse contracts and receiving illegal loans. He took advantage of the system where banks provide low-interest loans to low-income, homeless youth, and the Korea Housing Finance Corporation guarantees the full loan debt.

Mr. A advertised through social networking services (SNS) with the recruiter that high-value loans could be obtained and recruited youth. When the recruited youth received illegal loans, 5-10% of the loan amount was paid to the fake landlord who held the real estate title, up to 40% was paid to the fake tenant, and the rest was kept by Mr. A himself. Mr. A pocketed 700 million won through these crimes.

The prosecution decided to appeal on the 27th of last month due to the leniency of the sentence. A prosecution official stated, "Considering that the defendants gained considerable benefits but did not compensate for the damages and did not show sincere remorse in court as the main offenders, the sentence is too light," and added, "We are filing an appeal for all defendants to seek a heavier sentence commensurate with the crime."

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