[Asia Economy Reporter Song Seung-seop] Lee Jin-seon (21, pseudonym) recently applied after seeing an advertisement by a "work loan" provider claiming "dual jobs possible." The work loan provider requested personal information, saying a loan was needed to check creditworthiness before employment. The provider used the personal information to forge documents making it appear that Lee worked at a specific company and borrowed 2 million won from a savings bank. The provider said they would help with repayment if the loan was sent to the company, but after receiving Lee’s money, they disappeared without repayment.
On the 24th, the Financial Supervisory Service (FSS) issued a consumer alert at the "caution" level targeting university students and young loan applicants. This was due to the surge of fraudulent work loans targeting people in their 20s and 30s. The FSS warned that those involved in work loans could be treated as accomplices rather than victims, urging special caution.
The FSS issued the alert because fraudulent work loans have continued to occur. A work loan is a type of fraud where income certificates, income verification documents, or credit ratings are forged to borrow money from financial institutions. Although the FSS issued a consumer alert in July last year, cases have not decreased due to the increase in non-face-to-face loans and job seekers after COVID-19.
Most users of work loans were identified as university students or young people in their 20s. Work loan operators used various methods to forge or alter loan documents considering the income and credit of loan applicants. These loans were mostly small amounts obtained through non-face-to-face methods. Recently, a new method has emerged where loans are requested under the pretext of needing credit verification for employment.
The FSS plans to share work loan cases with savings banks and guide them to strengthen screening for non-face-to-face small loans. Additionally, if work loans are detected, the operators and accomplices will be reported to investigative agencies for strict action.
The FSS advised, “Work loans are difficult to succeed, and even if successful, one may become economically marginalized and find normal economic activities difficult,” adding, “Under no circumstances should anyone participate or become involved in work loans.”
They further explained, “If it is confirmed that forged or altered documents were submitted to financial companies during loan applications, the person will be registered as a financial disorder offender in the credit information system,” and “This will restrict financial transactions such as opening deposit accounts and may cause disadvantages when seeking employment.”
Meanwhile, if involved in fraudulent work loans, loan applicants may face criminal charges as accomplices rather than victims.
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