Incheon Attorney Consultation Case | A Suspended Sentence Defense Achieved for a Violation of the Credit Business Act through Incheon Attorney Consultation

The detailed background of the client's case, as revealed in the Incheon attorney consultation, is as follows.

The client, who worked at a loan brokerage, approached people seeking secured loans by offering to introduce them to lending institutions, and received a set fee once a loan was arranged.

The client stated that he came to plan the offense because he was experiencing financial difficulties.

The case involved a conspiracy among multiple people, and the amount also exceeded several billion won, so a prompt response was necessary.

These are the statutory provisions on the violation of the Credit Business Act, examined through the Incheon attorney consultation.

Provisions on the Violation of the Credit Business Act

Act on Registration of Credit Business and Protection of Finance Users, Article 11-2 (Restrictions on Brokerage, etc.) (1) A loan broker shall not provide loan brokerage to an unregistered lender.
(2) A loan broker and a loan solicitor (hereinafter referred to as a "loan broker, etc.") and an unregistered loan broker shall not receive consideration in connection with loan brokerage, whatever it may be called, including fees, gratuities, or retainers (hereinafter referred to as a "brokerage fee"), from the counterparty receiving the loan.
(3) Where a lender extends a loan to an individual or to a small-scale corporation prescribed by Presidential Decree, the brokerage fee paid to a loan broker, etc. shall not exceed an amount corresponding to the rate prescribed by Presidential Decree within the range of 5/100 of the relevant loan amount.
(4) The upper limit of a brokerage fee where a credit financial institution pays a brokerage fee to a loan broker, etc. shall be governed by paragraph (3) mutatis mutandis.
(5) The Financial Services Commission may order a credit financial institution that has paid a brokerage fee in violation of paragraph (4) to take corrective measures.
(6) A loan broker, etc. shall not receive from a lender or a credit financial institution a brokerage fee exceeding the amount under paragraphs (3) and (4).

Sentencing for the Violation of the Credit Business Act

Act on Registration of Credit Business and Protection of Finance Users, Article 19 (Penalty Provisions) (1) A person who falls under any of the following shall be punished by imprisonment for not more than five years or by a fine not exceeding 50 million won.
1. A person who has engaged in credit business, etc. without registration or renewal of registration in violation of Article 3 or 3-2
2. A person who has obtained registration or renewal of registration under Article 3 or 3-2 by deceit or other improper means
3. A person who has advertised credit business or loan brokerage in violation of Article 9-2 (1) or (2)
4. A person who has extended credit in violation of Article 10 (1) or (7)
5. A person who has received credit in violation of Article 10 (1) or (7)
(2) A person who falls under any of the following shall be punished by imprisonment for not more than three years or by a fine not exceeding 30 million won.
1. A person who has used, among his or her trade name, the term "loan," "loan brokerage," or a similar trade name in violation of Article 5-2 (4)
1-2. A person who has allowed another person to engage in credit business, etc. under his or her own name or has lent his or her registration certificate in violation of Article 5-2 (5)
2. A person who has used documents under Article 7 (3) for a purpose other than the relevant purpose
3. A person who has received interest exceeding the interest rate under Article 8 or 11 (1)
4. A person who has, in violation of Article 9-4 (1) or (2), engaged in the act of collecting a claim arising from a loan contract by being assigned the claim from an unregistered lender, or who has extended a loan to a counterparty who received loan brokerage from an unregistered loan broker
5. A person who has assigned a claim arising from a loan contract in violation of Article 9-4 (3)
6. A person who has, in violation of Article 11-2 (1) or (2), provided loan brokerage or received a brokerage fee
7. A person who has paid a brokerage fee exceeding the brokerage fee under Article 11-2 (3)
8. A person who has failed to comply with a corrective order under Article 11-2 (5)
9. A person who has received a brokerage fee in violation of Article 11-2 (6)
10. A person who has failed to comply with a corrective order under Article 15 (4)
(3) The imprisonment and the fine under paragraphs (1) and (2) may be imposed concurrently.

Following the Incheon attorney consultation, it was emphasized at trial that the defendant's motive for the offense was financial difficulty.

It was shown that the defendant, who was suffering financial hardship due to poverty, came to commit the offense.

Following the Incheon attorney consultation, it was argued at trial that the defendant's absence of prior offenses of the same kind should be taken into account.