Jang Young-ja, 82, who was called a "big player" for a bills fraud case worth 640 billion won in the 1980s, was recently found to have been convicted again in court for another fraud case. Jang was detained last Jan. over a forged check case worth 15.4 billion won and is serving time; she is set to be released at the end of this month. If the latest ruling is finalized by the Supreme Court, Jang will be incarcerated for the sixth time.
According to legal sources, Presiding Judge Park Kang-gyun, Criminal Single Bench 4 of the Seoul Central District Court, sentenced Jang to 10 months in prison on the 14th on a fraud charge. The crime was committed in Nov. 2022. It was right after she was released following a four-year prison sentence in 2018 for her fourth fraud case.
At the time, in Gyeongju, North Gyeongsang Province, Jang is said to have told victim A, whom she met through an acquaintance, "I intend to acquire a temple for a nonprofit religious project," and "I signed a sales contract for 900 million won and paid a 550 million won down payment, so if you lend me just 350 million won to clear the collateralized mortgage, I will acquire the temple under joint ownership." Believing this, A first remitted 100 million won to Jang.
However, the court found that Jang had no intention from the outset to acquire the temple. The promissory check she delivered, with a face value of 550 million won, had already matured and had been dishonored. She also failed to keep her promise to affix her seal to the real estate sales contract. The court said the real estate sales contract was concluded only in form, with no actual performance.
The court also found that Jang had no separate assets or sources of income and was unable to raise acquisition funds, noting that she was in arrears on more than 2.1 billion won in national and local government tax.
The court said, "Despite having no intent or ability to acquire, (Jang) deceived the victim and borrowed money under the pretext of acquisition funds, then misappropriated it," adding, "In light of the circumstances of the crime and the extent of the damage, the culpability is severe." It continued, "She has been punished multiple times for fraud and for uttering forged negotiable instruments, and committed the offense again during the repeat-offender period for similar crimes," and sentenced her to 10 months in prison.
However, the court did not take her into immediate custody in the courtroom, considering that she has been incarcerated since last year over the forged check case worth 15.4 billion won and that she is over 80 years old. After her release, she is expected to stand trial in this case without detention. Her attorney filed an appeal immediately after the first-instance verdict on the 14th.
Jang was sentenced to 15 years in prison in 1982, during the presidency of Chun Doo-hwan, for a bills fraud case worth 640 billion won. The 640 billion won amounted to 10% of the government budget at the time. That is why the case was called the "biggest financial fraud since the founding of the nation."
Since then, Jang's releases and reoffending have repeated. After being paroled in 1992, she was incarcerated again in 1994 for a second bills fraud case worth 14 billion won, less than two years later. She was released in 1998 in a Liberation Day special pardon, but in 2000 she was again detained for a 22 billion won "old-series banknotes" fraud case and served 15 years.
Even after her release in 2015, the crimes continued. Just seven months after release, she was again incarcerated on charges of defrauding acquaintances of about 600 million won by deceiving them that "expenses were needed to donate her husband's Samsung Everland convertible bonds to a foundation."
After being released in 2022, Jang was detained last Jan. over a forged check case worth 15.4 billion won, marking her fifth incarceration. If the latest ruling is finalized, this will be her sixth incarceration.