[Asia Economy Reporter Kim Hyung-min] As part of its self-reform measures, the prosecution has decided to impose strict restrictions on indiscriminate lawsuits filed by loan companies and others for debt collection.
According to the Supreme Prosecutors' Office on the 2nd, the prosecution plans to address the issue where ordinary citizens become suspects and cases are suspended due to loan companies, debt collection agencies, or illegal private lenders filing complaints against debtors for fraud, obstruction of rights, etc., in order to collect debts.
Based on 2018 data, out of approximately 1,800 cases filed by 17 major loan companies, only about 11% were prosecuted, while the majority were dismissed due to lack of evidence or suspended prosecution.
This is because loan companies often submit complaints first when debtors are unreachable or dispute the repayment amount, even though they can pursue debt collection through civil litigation procedures, resulting in simple debtors becoming investigation targets as suspects.
Accordingly, the prosecution has established a policy to initiate investigations only when there is concrete and clear evidence of active deception such as forgery of private documents or concealment of collateral (vehicles) when loan companies file complaints against debtors. In cases lacking such circumstances, the prosecution will dismiss the case without investigating the accused.
A prosecution official stated, "Going forward, the prosecution will continue to refine and operate the system to protect citizens' human rights through restrained exercise of investigative authority."
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