A 20-Year-Old Who Embezzled 200 Million Won by Abusing Youth Deposit Loans Sentenced to Prison in First Trial

by Lee Seohee

Published 14 Dec.2024 07:00(KST)

"The level of involvement is not light"

A man in his 20s who fraudulently applied for a youth deposit loan system at financial institutions and embezzled a total of 200 million won was sentenced to prison.

Yonhap News

On the 14th, Hong Da-seon, a judge of Criminal Division 4 at the Seoul Western District Court, announced that he sentenced A (25) to 1 year and 4 months in prison on charges including fraud.

A was indicted on charges of submitting a fake jeonse (long-term lease) contract to financial institutions after fabricating a lease agreement with a false landlord arranged by a loan broker, and sharing the loan money received with the loan broker and others.

In January, following the loan brokers' proposal that "a homeowner who will act as a false landlord has been found" and "once the loan is disbursed, it can be shared," A fraudulently prepared the fake jeonse contract and received a total of 200 million won in loans from financial institutions in two installments of 100 million won each. At that time, A's credit card debt was about 1.3 million won, and the existing loan amount reached 50 million won, indicating that A had neither the intention nor the ability to repay the loan.

Judge Hong stated, "The abuse of the jeonse deposit loan system and causing damage to financial institutions and those who use the system is a significant social harm, and the defendant's involvement in this organized crime is not minor. However, considering the defendant's remorse and the fact that the amount obtained by the defendant is small compared to the total damage," he made the ruling.