The police have sent 47 individuals, including loan brokers and credit union employees, to prosecution… The affected Saemaeul Safe is facing a crisis of existence.
On the 3rd, the Daegu Metropolitan Police Agency’s Anti-Corruption and Economic Crime Investigation Unit announced that they have arrested and sent two loan brokers, including Mr. A, for violating the Act on the Aggravated Punishment of Specific Economic Crimes. They are accused of illegally obtaining corporate operating funds worth over 48 billion won from three Saemaeul Safe branches in the Daegu area using false business registration certificates.
In addition, 45 individuals who conspired with Mr. A and participated in the crime, including three Saemaeul Safe employees, an appraiser, a real estate appraisal broker, and identity lenders, were sent without detention on similar charges.
According to the police, from March 2021 to January 2024, the suspects allegedly submitted falsified business registration certificates, real estate sales contracts, and real estate appraisal reports to the three Saemaeul Safe branches and borrowed a total of 48.7 billion won in corporate operating funds over 42 instances.
Corporate operating funds are financial products designed to cover essential business expenses such as wages and rent.
The investigation revealed that the loan brokers recruited about 30 people through loan brokerage advertisements, prepared various false documents under their names, and committed the crime.
Some of those who lent their identities submitted false documents to the affected Saemaeul Safes, borrowed the funds directly, and paid fees to the loan brokers. Others submitted forged documents and transferred the remaining money to the loan brokers after deducting the identity rental fee.
During the crime period, the amounts borrowed per individual using false documents ranged from 400 million to 4.4 billion won.
The appraiser firms and appraisers involved in the crime were found to have written appraisals for real estate intended to be used as loan collateral at the amounts requested by the appraisal brokers. These appraisal reports showed that the value of the real estate used as collateral was inflated by 180% to 300%.
Moreover, the three loan handling employees from the affected Saemaeul Safe branches manipulated the computer system to allow specific appraisal firms, which could assist the criminals, to participate in the loan review process.
Specifically, one of these loan handling employees received approximately 180 million won in exchange for ignoring illegal loan applications, while the fact of monetary receipt by the remaining two employees has not yet been confirmed.
A police representative stated, “Due to prolonged criminal activities, Saemaeul Safes are facing a crisis with a large volume of bad loans, and the damage is affecting small and medium business owners who legitimately need funds. We have recommended the Saemaeul Safe Federation to improve their system to prevent recurrences.”
They further added, “We will strictly address crimes that directly damage the livelihoods of ordinary people.”