Private loans are not considered fraud. The act of defrauding a relatively large amount of public or private property by fabricating facts or concealing the truth for the purpose of illegal possession is considered a crime of fraud. If the perpetrator commits the crime of fraud and the amount is relatively large, he shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also or solely be fined.

Legal Basis

Article 266 of the Criminal Law

Whoever defrauds public or private property, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention or control, and shall be concurrently or solely fined; if the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years, and shall also be fined; if the amount is particularly huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; if the amount is particularly huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than ten years but not more or life imprisonment, and a fine or confiscation of property. If this law provides otherwise, the provisions shall prevail.