A group of people in their 20s who extorted 1.3 billion won by signing false lease contracts to obtain youth jeonse loan funds from financial institutions have been brought to trial.
On the 4th, the Criminal Division 1 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Heo Seong-hwan) announced that the ringleader, Mr. A, was arrested and indicted on charges of fraud. One recruiter and seven false tenants, eight accomplices in total, were prosecuted without detention. All of them are understood to be in their early 20s.
According to the prosecution, the group exploited the fact that the conditions for the Korea Housing Finance Corporation (HF)'s 'Youth Customized Jeonse and Monthly Rent Loan' were relaxed and that document screening was conducted non-face-to-face. From May 2022 to February of the following year, they fraudulently signed false lease contracts for small-scale housing such as officetels and villas, embezzling loan funds amounting to approximately 1.376 billion won.
This loan system is one in which commercial banks provide low-interest loans to low-income, homeless youth under the full guarantee of the Housing Finance Corporation.
A prosecution official said, "Considering the significant amount of damage and the seriousness of the case, we directly arrested and indicted the ringleader," adding, "We will respond strictly to crimes that abuse the jeonse loan system supporting homeless youth and do our best to ensure that the defendants receive sentences commensurate with their crimes."
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