"We'll Sell Your Rental Products for You": Gang Defrauds Young Adults Starting Out

Stole Hundreds of Millions of Won from Over 10 Victims
Ulsan District Court Sentences Perpetrators to 1 to 5 Years in Prison

A group of individuals who deceived young adults struggling to secure loans from financial institutions-by promising to pay them cash in exchange for opening mobile phone lines or renting home appliances and then selling those products-have been sentenced to prison after embezzling a total of 270 million won.

According to a report by Yonhap News on January 22, the 11th Criminal Division of the Ulsan District Court (Presiding Judge Park Dongkyu) sentenced a man in his 20s, identified as A, to five years in prison on charges including inducement for profit. The court also sentenced B, a man in his 30s and an accomplice, to two years in prison, and C, a man in his 20s, to one year in prison.

Ulsan District Court Building

They approached young people with low credit scores through social networking services (SNS), using what is commonly known as a "naegujae (self-rescue) loan" as bait. A naegujae loan involves individuals who have difficulty obtaining loans from financial institutions acquiring products such as mobile phones or home appliances through new contracts or rentals, and then selling those items secondhand to raise cash.

A and his accomplices deceived victims by claiming, "If you use a naegujae loan, you can earn about 150 million won in profit and, after six months, file for bankruptcy and personal rehabilitation without suffering any losses." Once the victims handed over rented TVs, monitors, pressure rice cookers, and newly activated mobile phones, the perpetrators disposed of the items but did not pay the promised money.

Through this scheme, from January to September 2024, they defrauded more than 10 victims in approximately 60 separate instances, stealing a total of over 270 million won.

They also attempted to persuade some victims to join crime-related organizations in China or Cambodia, telling them they could earn large sums of money by working abroad. In the process, they confiscated victims' identification cards and mobile phones, and in some cases, physically assaulted and threatened them to steal valuables.

The court stated, "The defendants committed loan fraud purely for their own gain and inflicted severe harm by assaulting and threatening the victims, making their crimes extremely grave." The court further explained the sentencing by noting, "However, we also considered the fact that the defendants generally admitted their crimes and showed remorse, and that the victims were not placed in substantial danger."