History and scale
Obtaining property by trickery has been punished since the Roman stellionatus. The modern offense passed through the French Penal Code (1810) and the German Criminal Code (1871) to Japan and then into Korea's Criminal Act in 1953. Fraud is unusually common in Korea. Police record roughly 300,000 cases a year, more than theft, which makes it the most frequent crime. A surge in voice phishing led to a 2011 special act on refunding victims. The 2022–23 jeonse fraud wave revived calls for tougher penalties.
Elements and sentencing
Fraud requires a causal chain: (1) deception, such as lying or concealing facts; (2) the victim's mistaken belief; (3) a transfer of property based on that mistake; and (4) a gain for the offender. Borrowing with no intention or ability to repay is fraud. Failing to repay after circumstances worsen is a civil default, not a crime. For gains of ₩500 million or more, the Act on Aggravated Punishment of Specific Economic Crimes sets at least three years in prison. At ₩5 billion or more, the minimum is five years, up to life.
Responding to fraud
For secondhand-trade scams, gather transaction records, chat screenshots, and account numbers, then report through the police cyber crime portal. For voice phishing, call 112 or your bank immediately to freeze the account, which starts the refund process. Beyond a criminal complaint, money can be pursued with a certified demand letter, a payment order, or a compensation order in the criminal case. A civil tort claim is another option. In the complaint, lay out in order exactly when and how you were deceived.
FAQ
- Is not repaying a loan always fraud?
- No—if the borrower intended and was able to repay at the time, it's a civil matter.
- Can voice phishing losses be recovered?
- Requesting an immediate freeze lets funds remaining in the fraud account be refunded.
Sources reviewed: 2026-10-26
References
- 형법 제347조(사기), 제347조의2(컴퓨터등 사용사기), 제351조(상습범).
- 특정경제범죄 가중처벌 등에 관한 법률 제3조.
- 전기통신금융사기 피해 방지 및 피해금 환급에 관한 특별법(2011).