A job offer, a loan or a favour that needs your bank card or login. Why Korean law treats it as an offence, how account holders end up under investigation, and what to do if you already handed it over.
Quick answer: Yes, it can be a serious problem. Korean law prohibits handing over your bank card, passbook, OTP device, login details or other means of accessing your account, and prohibits lending them in return for any benefit or when you know they may be used for crime. Accounts handed over this way are often used to move money from phone scams, and the account holder can end up under criminal investigation even without ever meeting the scammers.
Key points
- Handing over your card, passbook, OTP device or login details is prohibited outright; lending them is prohibited if anything is given or promised in return, or for a crime (Electronic Financial Transactions Act, Article 6(3)).
- The penalty is up to 5 years’ imprisonment or a fine of up to KRW 30 million (Article 49(4)).
- “Something in return” includes the chance of getting a loan, not only cash (Supreme Court 2017Do16946).
- An account holder can also be investigated as an accessory to the fraud committed through the account.
- A fine in a phone scam case brings a 3-year restriction on electronic financial transactions; a prison sentence brings 5 years.
What the Law Prohibits
Under Article 6(3) of the Electronic Financial Transactions Act, no one may:
- transfer or receive the means of access to an account (such as a card, passbook, OTP device or certificate);
- lend or borrow them, or keep, pass on or circulate them, while giving, asking for or promising something in return;
- lend or borrow them, or keep, pass on or circulate them, for the purpose of a crime or knowing they will be used for one;
- pledge them as security; or
- arrange, broker, advertise or, for something in return, encourage any of the above.
Breaking these rules is punishable by up to 5 years’ imprisonment or a fine of up to KRW 30 million (Article 49(4)). This is the statutory range; the outcome in an individual case depends on many other factors.
“I Wasn’t Paid in Cash” Does Not Settle It
The Supreme Court has said that “something in return” means any economic benefit that corresponds to lending the account. In one case, a person who could not get a loan in the normal way handed over account access in exchange for the chance to get a loan, and the Court said that could count as something in return (Supreme Court 2017Do16946). Offers like a part time job, help with a loan, or a monthly fee all need to be treated with great care.
A loan opportunity can be “something in return”Supreme Court 2017Do16946Supreme Court
“Something in return” means any economic benefit that corresponds to lending the account. A person who could not borrow in the normal way handed over account access in exchange for the chance of a loan, and the Court said that could count.
What it means for youNot being paid in cash does not make lending your account safe. A promised job, a loan or a monthly fee can all be enough.
You Can Also Be Investigated for Helping the Fraud
Separately from the account rules, a person who hands over an account may be investigated as an accessory to the fraud committed with it. Under Korean criminal law, an accessory does not need to know the details of the crime; it can be enough that they foresaw it might happen and still provided help. Whether this applies depends heavily on what the person knew and was told, which is why the first police interview matters.
Restrictions After a Conviction
Under the special act on telecommunications financial fraud, a person fined for handing over or lending account access in connection with a phone scam is designated by the Financial Supervisory Service as a person restricted from electronic financial transactions. The restriction runs for 3 years from a fine, or 5 years from a prison sentence including a suspended sentence (Article 13-2). In practice that can make everyday banking in Korea very difficult.
What You Should Do First
Call your bank now to suspend the account and its access tools, and do not move any money that arrives in it. Then keep every message from the person who asked.
- Do not hand over your card, passbook, OTP or login details to anyone.
- If you already did, contact your bank immediately to suspend the account and access tools.
- Keep every message from the person who asked, including job adverts and chat history.
- Do not withdraw or send on any money that arrives in the account.
- If the police contact you, get advice before the interview.
Evidence to Keep
- Chat messages, job adverts and the account or phone number of the person who asked
- Records of any money or benefit you received or were promised
- Bank notices about suspension or restriction
- Your Alien Registration Card and account opening documents
When This Becomes a Legal Problem
Speak to a lawyer if your account has been suspended, if the police have contacted you, or if you received or were promised anything for letting someone use your account. YUSU Lawfirm has handled a fraud case where the client was accused as a co-conspirator and no charges were brought.
YUSU Lawfirm case
Two account-lending cases combined into a single fine
- Situation
- A client who had handed over a bank account and a SIM card was investigated in two separate cases, facing two separate criminal records.
- Our role
- Used a procedural strategy to bring the two cases together so they were decided as one.
- Outcome
- Both cases ended in a single fine, avoiding the heavier result separate judgments would have brought.
Every case turns on its own facts. Past results do not guarantee a similar outcome.
YUSU Lawfirm case
Named as a fraud co-conspirator for being present
- Situation
- A client was named in a fraud complaint over a transaction they had only been present for.
- Our role
- Showed there was no agreement to commit the crime and no intent to deceive.
- Outcome
- The police closed the case with no charges.
Every case turns on its own facts. Past results do not guarantee a similar outcome.
Frequently Asked Questions
I only lent my card to a friend and got nothing. Is that a problem?
Handing over access permanently is prohibited whether or not you were paid. Lending is prohibited where something is given or promised in return, or where you knew or intended that it would be used for crime. The facts matter, so get advice before explaining it to the police.
My account was frozen. What now?
Contact your bank to find out why and keep every notice you receive. We explain how a payment suspension works in our answer on frozen bank accounts. If the freeze is linked to a fraud report, get legal advice before giving any statement.
Will this affect my visa?
It can, but not automatically. See how a criminal charge can affect your visa.
Related reading
Related guides
This article is general information about Korean financial law and is not legal advice. Outcomes depend on the facts of each case, and statutory provisions are subject to amendment.
Account lending
Get advice before you talk to the police
In a first consultation we look at:
- whether what you did falls within the prohibited acts
- how to explain what you knew, before the first interview
- what a fine or record would mean for banking and your visa
A consultation is not a commitment. If you need representation, we explain what it would involve and what it would cost before you decide.
Please do not send documents or evidence through the form. We arrange a secure channel once we take the matter on.