Gang Involved in Illegal Mediation of Loans for Ordinary People and Embezzling Approximately 4 Billion Won Arrested

A group involved in mediating loans for ordinary citizens and illegally collecting approximately 3 billion KRW in fees was arrested by the police. They are also suspected of selling the personal information of 356 individuals to a Chinese voice phishing organization, receiving about 800 million KRW in return.

Mobile phone used by the group who illegally received approximately 3 billion KRW in commissions after loan brokerage. [Image source=Gwanak Police Station]

On the 28th, the Seoul Gwanak Police Station announced that they had sent 24 suspects charged with violations of the Loan Business Act, the Telecommunications Business Act, and aiding fraud to the prosecution. Among them, five key suspects, including the ringleader Mr. A (27, male), were transferred to the prosecution while in custody.

They are accused of impersonating savings bank employees from January last year to April this year, claiming to handle Sunshine Loan (Haetsal Loan) applications, and mediating loans totaling 24.5 billion KRW through 2,301 transactions using the personal information of 1,513 victims. During this process, they reportedly collected a total of 2.97 billion KRW in fees, ranging from 10% to 50% of the loan amounts, from the victims. They also sold the personal information of 356 individuals who were unable to obtain loans due to low credit to a Chinese voice phishing organization, receiving 780 million KRW. The Chinese voice phishing group used this information to open 1,568 burner phone lines and defrauded 62 people of 1.89 billion KRW.

Investigations revealed that Mr. A directly applied for loans at commercial banks on behalf of the victims. After receiving promissory notes, he repaid the victims’ existing debts with company funds to improve their credit scores and secure larger loans. To evade law enforcement tracking, he instructed loan recruiters to use aliases and used burner accounts to receive fees.

The police began their investigation in March after receiving intelligence. They conducted searches and seizures of the suspects’ offices and bank accounts, and analyzed the seized items to prove the illegal acquisition of brokerage fees.

A police official stated, "We have communicated to the Korea Inclusive Finance Agency the need for institutional improvements, such as strengthening identity verification responsibilities during the loan screening process."