Business operators suspected of manipulating capital loan contracts into goods supply contracts to steal about 8 billion won were caught by police.
The Seoul Metropolitan Police Agency's violent crime mobile unit said on the 7th that it sent 38 people, including business operators and brokers such as company representatives identified as A and B, to prosecutors on charges including violating the Act on the Prevention of Insurance Fraud, and that A was sent under arrest.
They are suspected of disguising intercompany capital loan contracts as supply contracts from February 2020 to July 2023 and, by signing up for an insurance product from Seoul Guarantee Insurance (SGI), stealing a total of about 8 billion won from SGI.
SGI operates a "performance bond insurance" product that guarantees the return of funds when an insurance policyholder signs a supply contract with another company and then fails to deliver goods on time or to return an advance payment received for goods.
A and others targeted this, signing false supply contracts and enrolling in the insurance. When B's company, which had low credit, had difficulty enrolling in guarantee insurance, they reportedly recruited a third company to enter into the false supply contract on its behalf and enroll in the guarantee insurance.
The companies that borrowed a total of about 15 billion won in this way failed to repay principal of about 8 billion won, which was found to have been paid by SGI as insurance money. Police said they picked up related intelligence in Oct. last year and launched an investigation, leading to the arrests.