Factory Owner Gets Suspended Sentence for Embezzling Loans Using Identity of Disabled Worker of 40 Years

Victim Unable to Communicate Without a Hearing Aid
Tens of Millions of Won Embezzled

A factory owner in his 60s who exploited the communication difficulties of a hearing-impaired worker, with whom he had worked for 40 years, to take out loans and insurance policies in the worker’s name and siphoned off tens of millions of won, has been sentenced to a suspended prison term.

According to the legal community on April 18, Judge Kim Hoigeun of the Seoul Northern District Court, Criminal Division 12, sentenced Mr. A (60), who was indicted on charges of fraud, quasi-fraud, and embezzlement, to two years in prison with a three-year suspension and ordered 160 hours of community service.

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Mr. A, who operated a factory in Seongbuk-gu, Seoul, was brought to trial on charges of taking out loans and insurance policies in the name of Mr. B, a hearing-impaired worker who had worked with him for about 40 years, and using the loan and insurance proceeds for personal purposes.

Investigations showed that Mr. B lived and worked at the factory for 40 years since the age of 19, engaging in simple tasks such as laundry, ironing, and deliveries for more than 12 hours a day, often until 3 or 4 a.m. In particular, Mr. B became hearing-impaired due to aftereffects of otitis media during childhood and could not communicate without a hearing aid. He had not received proper education and thus lacked an understanding of financial transactions. Apart from making simple purchases at convenience stores, Mr. B struggled with everyday activities such as ordering food, sending text messages, or grocery shopping.

Taking advantage of these circumstances, Mr. A deceived credit card and insurance companies by pretending to be Mr. B and took out a loan of 45 million won. He then took Mr. B, who did not even fully understand the concept of a loan, to an insurance company and had him fill out an application, obtaining an additional 30 million won. In total, Mr. A secured 75 million won in loans under the victim’s name and used the funds for himself.

It was also revealed that Mr. A received Mr. B’s bankbook and card to manage his salary and other finances on his behalf, and during this process, embezzled approximately 25.3 million won of Mr. B’s assets, including insurance policy loans and insurance payouts, for personal use.

Judge Kim stated, “It is reasonable to conclude that the victim was in a state of mental and physical disability, unable to understand the meaning and consequences of the loans,” adding, “The defendant, while running a fashion factory, used his employee to repeatedly commit fraud and embezzlement, and considering the methods used, the nature of the crime is extremely serious.”

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