A fraudster who illegally borrowed 1 billion KRW from commercial banks by abusing the youth jeonse and monthly rent loan system, established to support young people without homes, was sentenced to prison.
On the 29th, the 12th Criminal Division of the Seoul Western District Court (Presiding Judge Kwon Seong-su) sentenced Seong Mo (60), who was indicted on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison on the 18th of this month. The court explained the sentencing reason, stating, "The crime was committed by abusing the youth jeonse and monthly rent support system, and the damage caused to society is serious, making severe punishment inevitable."
Seong exploited the fact that the procedure for low-interest jeonse loans to youth is conducted non-face-to-face at banks. He was indicted on charges of borrowing and pocketing 1,077,100,000 KRW from three commercial banks from December 2021 to September of the following year by signing fake lease contracts with fictitious tenants.
In July 2021, Seong became involved in a 'no-capital gap investment' scheme proposed by loan broker A, whom he met while looking for small part-time jobs on the internet. He received ownership of multiple real estate properties and became a so-called 'nominal landlord.' He conspired with A and another loan broker B to commit fraud by finding fake tenants among the youth and preparing fake jeonse lease documents to obtain loans. A recruited fake lessors including Seong, while B managed the overall illegal loan process, including the distribution of criminal proceeds. Seong registered as the lessor, signed false jeonse contracts, and shared the illegal loan money deposited into his bank account.
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