President Lee: "Criminal Prosecution and Loan Recovery for Using Business Loans to Purchase Real Estate"

"We Do Not Make Empty Threats... You May Lose Your Principal, Not Just Potential Gains"

President Lee Jaemyung issued a stern warning on the 17th regarding the practice of exploiting business loans for real estate purchases, stating, "The government of national sovereignty will never tolerate expedient or illegal acts, so at the very least, I urge you to refrain from such actions from this moment." He reaffirmed the government's strong stance against speculative real estate loans, emphasizing that, through a joint full-scale investigation by the Financial Supervisory Service and the National Tax Service, criminal charges and loan recovery are possible.

Yonhap News Agency

After sharing related news coverage on X (formerly Twitter) the same day, President Lee stated, "If you deceive financial institutions by claiming a loan is for business purposes, when in fact it is intended for real estate speculation, and then use it to purchase property, you will be prosecuted for fraud." He reiterated this warning in his remarks.

He further stated, "The Financial Supervisory Service and the National Tax Service can jointly conduct a thorough investigation, file criminal charges for fraud, and recover the loaned funds. The government of national sovereignty will never tolerate expedient or illegal acts, so at the very least, I urge you to refrain from such actions from this moment."

President Lee also cautioned, "If you engage in real estate speculation to make money, you may end up not only losing your profits but also your principal. The government of national sovereignty does not make empty threats. I am giving you advance notice so that you do not suffer unnecessary losses by resorting to tricks."

This message is interpreted as a direct warning against roundabout funding schemes, aligning with the government's recent policy stance of normalizing the real estate market by regulating loans for multiple property owners and setting new standards for speculative single-home loans.

This content was produced with the assistance of AI translation services.