"If You Can Handle It Physically"... A Staggering 126 Trillion Won in Fraud Damage Over the Past 5 Years

Around 300,000 Fraud Cases Annually
"Increase Sentences to Strengthen Punishment Severity"

Over the past five years, approximately 300,000 fraud crimes have occurred annually in South Korea. The resulting damage amounts to 126 trillion won.

According to data received by Kwon In-sook, a member of the National Assembly's Public Administration and Security Committee from the Democratic Party of Korea, from the National Police Agency on the 12th, a total of 1,542,000 fraud crimes were recorded from 2018 to last year. During the same period, 1,493,000 people were arrested on fraud charges, averaging about 300,000 per year.

By year, there were 270,000 cases in 2018, 304,000 in 2019, 348,000 in 2020, 294,000 in 2021, and 326,000 in 2022. This year, 289,000 cases occurred up to October. On average, around 300,000 fraud crimes have occurred annually.

The damage during this period was estimated at 126.4 trillion won. It decreased from 33 trillion won in 2018 to 24.2 trillion won in 2019, 25 trillion won in 2020, and 15.1 trillion won in 2021, but increased again to 29.2 trillion won last year. This year, about 16 trillion won in damage has occurred up to October.

Jeon Cheong-jo, who recently caused a stir with a fraud scheme amounting to 3 billion won, was brought out to the Songpa Police Station in Seoul on the morning of the 10th and is being transferred to the Eastern District Prosecutors' Office. [Image source=Yonhap News]

Experts cite weak punishment levels as one of the main reasons why fraud crimes persist domestically. According to the Supreme Court sentencing guidelines, for general fraud, if the amount gained from the crime is between 500 million and less than 5 billion won, a basic sentence of 3 to 6 years is imposed. If the crime is more severe and the sentence is aggravated, it ranges from 4 to 7 years.

Attorney Lim Chae-won, former head of the Major Economic Crime Investigation Division at the Seoul Eastern District Prosecutors' Office, explained, “Many fraud victims do not file complaints either because they know the fraudster, there is no evidence, or the statute of limitations has expired, and even during investigations, charges often cannot be proven, so cases do not proceed to prosecution.”

He added, “The sentences are also low, so fraudsters can hide all the money they swindled under false names and say they will ‘make up for it with their body.’” In other words, even if caught and punished for committing fraud, it still turns out to be a ‘profitable business.’

He emphasized that not only should the punishment for fraud be increased to strengthen penalties, but it is also important to always leave evidence when entering into contracts involving money. Attorney Lim pointed out, “The culture of making verbal promises and the mindset that money is more important than morals or ethics are also causes of widespread fraud.”

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