South Korean ringleader sentenced for 10 billion won used car loan fraud

A ringleader has been sentenced to seven years in prison for orchestrating a massive fraud scheme that swindled over 10 billion won from 11 capital companies by misrepresenting damaged vehicles as functional used cars.

Between June 2022 and March 2024, the group carried out approximately 220 fraudulent loan applications. The scheme involved purchasing non-operational vehicles from repair shops and junkyards at low prices, then using image editing software to manipulate photos and license plates to make them appear in good condition. To facilitate the loans, the group recruited individuals with high credit scores to act as nominal buyers, paying them monthly fees or a percentage of the loan amounts in exchange for using their identities to sign false sales contracts.

The Incheon District Court handed down the seven-year sentence to the 44-year-old mastermind, noting that he led the crime while on parole for a previous fraud conviction. Two accomplices received three-year prison sentences. The court emphasized the significant social harm caused by the scale of the theft and noted that the defendants attempted to evade investigation by traveling abroad.