Not repaying is not the same as fraud
A borrower's failure to repay does not automatically make it criminal fraud. For the crime of fraud under Article 347 of the Criminal Act, it must be established that at the time of borrowing the person already had no intention or ability to repay and deceived you anyway.
What investigative agencies examine is the situation at the time of borrowing. A complaint becomes meaningful when circumstances build up, such as showing a forged balance certificate, describing a business or collateral that does not exist, borrowing from several people around the same time, or using the money for something completely different from the stated purpose.
If the amount obtained by fraud is KRW 500 million or more, Article 3 of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (the “Specific Economic Crimes Act”, 특정경제범죄법) applies and the penalty rises sharply.
Getting the money back through civil proceedings
Regardless of a criminal complaint, you can claim return of the loan or the agreed amount. Even without an IOU, the fact of the loan is often proven through bank transfer records, KakaoTalk conversations, and recordings.
If the other party is unlikely to put up much of a fight, we quickly secure an enforceable title through a payment order; if a dispute is expected, we file a formal lawsuit. Either way, the starting point for recovery is to apply for provisional attachment first, before the other party's assets disappear.
Be sure to check the wording of any written pledge or IOU. In a case handled by DAEON Law Firm, a written pledge contained an agreement to pay KRW 300 million, and although the money actually lent was about KRW 40 million, we won a judgment for the full KRW 300 million.
Money handed over in the name of investment or partnership
For money taken with a promise such as "Invest in my business and I will share the profits," the method of claim depends on whether it was an investment or a loan. We check whether a return of principal was promised, how profits were to be shared, and whether the money was actually used for the business.
If the business never existed from the start, you can file a fraud complaint and a damages claim together.
Materials to bring to a consultation
- IOU, written pledge, or investment contract (if there is none, just let us know)
- Bank transfer history and card usage history
- Conversations or recordings from when you were asked for the money
- The balance certificate and business materials the other party presented
Frequently Asked Questions
I did not have them sign an IOU. Can I still get the money back?
If I just file a criminal complaint, will the money come back?
It has been a long time since I lent the money. Has the limitation period run out?
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A judgment only confirms that you have a right; it does no…
Read more →Written on the basis of Korean statutes in force (National Law Information Center, Ministry of Government Legislation) and court precedents as of October 20, 2026. Results may differ with amendments to the law or the facts of each case. This page is general information, not legal advice.
Written and reviewed by Attorney Dongwoo Shin — Ph.D. in Law; certified criminal law specialist and certified divorce law specialist registered with the Korean Bar Association. He handles each case personally from consultation to judgment. About the attorney →
Last updated October 20, 2026
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