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A gang of men and women in their twenties have been caught committing a so-called 'work loan' scam using false documents. 



Daegu Seobu Police Station announced today (15th) that it has arrested 5 people, including a man in his 20s, including a man in his 20s, arrested for fraud and other charges, arrested 2 people, and booked 3 without detention.



Five people, including Mr. A, are accused of falsifying documents related to loans to Mr. B, a man in his 20s, and Mr. C, a woman in her 20s, at a PC room in Seo-gu in August, borrowing money worth 25 million won, and then stealing it.



The daily wage of 5 people, including Mr. A, had 2 people, including Mr. B, who needed urgent money, take out loans from 3 places in the 2nd financial sector.



Afterwards, they were imprisoned in inns in Daejeon and Jinju, and when the money they applied for was deposited, they threatened and intercepted it.



It turns out that two people, including Mr. B, made an extreme choice after being scammed and suffering from constant threats. 



In particular, a group of five people, including Mr. A, was an organization that had been scamming work loans in the Daejeon area, and it was investigated that one of them was acquainted with the deceased Mr. C. 



Previously, while investigating a case in which a man and a woman in their 20s made an extreme choice in August, the police learned of the crime of Mr. A's gang. 


Rising 'work loans' targeting young people with low credit ratings

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'Work loan' refers to a loan using false documents. A person who professionally forges documents proving income (so-called 'work loan business') approaches people who have difficulties in borrowing through leaflets or Internet cafes, and forges or forges income. After obtaining a loan from a savings bank with documentary evidence, they engage in fraudulent behavior by intercepting high fees. 



They falsify and falsify loan documents in various ways, taking into account the income and credit of the borrower, and it has been found that in order to collect more fees, the borrower is given a loan in excess of the desired amount, making it impossible to repay. 



However, after subtracting the fees to be paid to the work lender and the loan interest to be paid to the savings bank in this way, the amount that can be actually used is extremely limited, only adding to the economic burden. 



In particular, if young people participate in or are involved in work loans, they will be registered as financial disorderly workers, their financial transactions will be restricted, and they may face disadvantages when getting a job.  



Even work loans are fraudulent loans made up of forgery and falsification of public and private documents, so not only the work loan lender but also the loan applicant are subject to criminal punishment (imprisonment or fines) as accomplices. 



A police official said, "Recently, there has been an increase in work loan fraud against young people with low credit ratings, so we plan to further investigate related crimes."



※ Reference: 'Young people born in the 1990s, beware of fraudulent work loans with 30% loan fee', Financial Supervisory Information (2020)


※ For young people (including college students), prior to loans from financial companies, 'Hassalon Youth' (www.kinfa.or.kr) of the Small Finance Promotion Institute, 'School Loan' (www.kosaf.go.kr) of the Korea Student Aid Foundation, Please first check public support such as the recovery committee's debt adjustment system for unemployed young people and college students (www.ccrs.or.kr).