A credit union employee who embezzled 1.5 billion won in customer deposits over 22 years has been sentenced to prison in the appellate court, following a similar ruling in the first trial.

According to legal circles on the 6th, the Jeonju branch of the Gwangju High Court's criminal division 1 (Judge Yang Jin-soo) upheld the first-instance sentence of 4 years and 6 months of imprisonment for Mr. A (54), who was prosecuted for violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (embezzlement), forgery of documents, and using forged documents, while dismissing the defendant's appeal.

Mr. A, who was an employee at a credit union in North Jeolla Province, was charged with embezzling approximately 1.5 billion won in customer deposits by diverting funds on 87 occasions from 2002 to 2023.

He lured acquaintances and others into depositing their money by promising high interest rates, paying interest initially but later using methods such as account closure to embezzle customers' funds.

This long-term criminal activity only came to light when Mr. A voluntarily reported himself to the authorities on July 3, 2023. He reportedly pleaded for leniency during the trial, stating, "Please consider that I went to the police to confess my crimes." This long-term criminal activity only came to light when Mr. A voluntarily reported himself to the authorities on July 3, 2023.

The court determined that Mr. A's self-reporting was not a genuine act.

By the time Mr. A reported himself, the credit union members and customers who had deposited money there were already aware, through the financial institution's app, that their account balances were zero.

Furthermore, just two days before and on the same day of his self-report, Mr. A visited the credit union's office and attempted to destroy some documents related to his crimes, actively trying to eliminate evidence.

The first-instance court ruled that Mr. A approached the police when he was in danger of getting caught in order to reduce his punishment, and the appellate court also found this judgment to be valid.

The appellate court stated, "The defendant committed his crimes meticulously, systematically, and repeatedly over a very long period," and pointed out, "Considering the defendant's position, the relationship with victims, the length, frequency, and methods of his crimes, the nature of the offense is very serious."

Additionally, it criticized, "This crime has undermined the trust and reputation of the financial institution, and it has also shattered the trust of clients who entrusted virtually their entire family's assets to the institution, significantly impacting the social trust in the financial system." The court did not accept Mr. A's claims of undue sentencing.

Customers who lost their deposits have currently filed a civil suit against the credit union for 1.7 billion won.

Mr. A is in a situation where he has no ability to repay the full amount he embezzled as he used it for personal expenditures such as apartment renovations and car purchases. Therefore, it seems likely that this case will result in losses for either the credit union or the customers, depending on the outcome of the trial.

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