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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Lee Chan-jin, Governor of South Korea’s Financial Supervisory Service (FSS), declared a full-scale crackdown on illegal private lending, denouncing it as an “anti-humanitarian crime that destroys people’s dignity.” The FSS will directly send lenders an official invalidation notice, stamped with the Governor’s seal, confirming that both principal and interest claims are null and void. The authority also plans to introduce special judicial police powers dedicated to民생범죄 and establish specialized investigative units nationwide.
On the 27th, the FSS held the 3rd Financial Consumer Protection Forum at its headquarters in Yeouido, Seoul, co-hosted with National Assembly members Yoo Young-ha, Han Chang-min, and Heo Young of the Political Affairs Committee. The session focused on measures to eradicate illegal private lending and strengthen management of commercial claims.
Governor Lee stated,
“Illegal private lending turns money borrowed to survive into shackles that steal people’s hope. With murderous interest rates and ruthless collection practices, it destroys human dignity. This is a heinous, anti-humanitarian crime that must be eradicated.”
He added,
“We will not only intensify crackdowns but also reinforce preventive measures.”
Illegal private lending damages have steadily increased in recent years. According to the FSS, from January to October this year, 14,316 cases of illegal lending-related consultations and reports were filed, nearly matching last year’s annual total of 14,786. Cases have consistently risen from 10,350 in 2022, to 12,884 in 2023, and 14,786 in 2024.
Police crackdowns are also intensifying. During the same period, 3,043 offenders were apprehended for illegal private lending—a surge of 83% from the previous year’s 1,663 cases. The number of individuals arrested rose 28% to 3,834.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
