Written by Attorney Soobin You — a former prosecutor licensed in Korea, representing fraud victims with consultations available in English.
Quick answer: In Korea, if you were defrauded, filing a criminal complaint first — or alongside a civil claim — is critical. If you pursue only a civil suit and the other person files for bankruptcy or debt rehabilitation, recovery can become nearly impossible. But once fraud is established, the debt can become non-dischargeable, so you can keep pursuing repayment even through their bankruptcy.
Lending money to someone you know is driven by emotion, which makes the legal risk hard to see. In one case, a client trusted an acquaintance, lent money repeatedly, and watched the losses climb past 100 million KRW. Here is how these cases work — and why the order of your legal steps matters.
How it started: “Just help me this once”
It began with a small loan to a long-time acquaintance. Days later came more requests — “I need money urgently to clear an old debt,” “help me just this once, and I’ll settle it right away.” The client believed them, again and again, until the cumulative amount exceeded 100 million KRW. The problem: the other person had neither the ability nor the intention to repay from the very beginning.
Structuring the pattern of deception
We analyzed the message and chat records, the account transaction history, how each loan came about, and the verbal patterns of deception the other person used — then built the complaint around them. Korean courts treat repeated deception, false promises, and unreasonable money demands as key indicators, so the strategy was to show the underlying structure of the fraud clearly, not just the fact of non-payment.
The investigation: proving intent through contradictions
Based on the evidence and analysis submitted, investigators identified where the other person’s statements contradicted each other, that the entire borrowing process rested on false pretenses, and that the money was used with no connection to any repayment plan. As a result, the other person was detained during the investigation, remained in custody through trial, and received a prison sentence at first instance. The scale of the loss, the repetition, and the clear deception were all recognized.
Settlement and the civil strategy
During the criminal case, the other side proposed a settlement — but the amount was a fraction of the loss, with no genuine will to make the victim whole. The client decided a civil suit was warranted, and we are now handling that damages claim, using the criminal judgment as the foundation for debt recovery. With a criminal conviction in hand, the client sits in a far stronger position.
Why fraud victims must start with the criminal track
This is the most important lesson from handling many of these cases: fraud victims should file a criminal case first or run both tracks in parallel. Victims who go civil-only often find the other person entering rehabilitation or bankruptcy, at which point recovery collapses. But when fraud is established, the debt can be non-dischargeable even through bankruptcy — meaning you can pursue compensation to the end. For foreigners, especially, who may not know this rule, it is a decisive strategic point.
Fraud between acquaintances: the betrayal cuts deeper than the loss
Fraud between people who know each other is more than financial loss — the sense of betrayal and the psychological blow are severe. Clients tend to blame themselves. But this is not the victim’s fault: it is a crime committed by someone who deliberately deceived them. What recovery requires is a fast legal response and a precise strategy.
Frequently Asked Questions
Q: If someone borrowed money and won’t repay, is that fraud in Korea?
A: Not automatically. Non-payment alone is usually a civil matter. Fraud requires evidence that the person had no intention to repay from the start, or obtained the money by deception — shown through message records, contradictions, and how the money was actually used.
Q: Should I file a criminal complaint or a civil suit first?
A: Generally, file criminally first or run both together. A civil-only approach can fail if the other person enters bankruptcy or rehabilitation. A criminal fraud finding strengthens the civil claim and can make the debt non-dischargeable.
Q: Can I still recover money if the person declares bankruptcy?
A: Possibly. When a debt arises from fraud, it can be treated as non-dischargeable — meaning bankruptcy does not wipe it out, and you can continue pursuing repayment.
Q: Can a foreigner file a fraud complaint in Korea?
A: Yes. Criminal complaints and civil claims are available regardless of nationality. Because procedures run in Korean, representation helps significantly.
This article is for general information only and does not constitute legal advice. Outcomes depend on the specific facts of each case. For advice on your situation, consult a licensed attorney.
Were you defrauded by someone you trusted in Korea? Attorney Soobin You represents fraud victims from criminal complaint through civil recovery, with offices in Seoul (Mapo) and Gyeongju. Contact us via KakaoTalk or the inquiry form.