Narrowing Loan Criteria Sparks Illegal Loans 'Sseumeol'... Ulsan City Launches Special Crackdown with Triple Penalties: Prosecution, Registration Cancellation, and Business Suspension

January 19 to February 3, Preventing Citizen Harm Through Combined Promotion and Enforcement

Ulsan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Ulsan City is conducting a special crackdown to prevent damages from illegal high-interest loans and false or exaggerated advertisements by unlicensed loan companies ahead of the Lunar New Year holiday.

The city anticipated that due to the significant impact of the COVID-19 spread on the local economy and the increased demand for holiday loan funds from local residents such as small business owners and self-employed individuals, cases of damage from illegal high-interest loans would increase.

From the 19th to the 23rd, promotional activities including distributing informational leaflets to prevent damages from illegal loans will be carried out.

From the 24th of this month to February 3rd, there will be a focused crackdown on illegal high-interest loans, false advertisements, and unlicensed lending.

A city official stated, “Recently, due to the reduction of loans in the financial sector, damages from illegal loans have increased,” and added, “Unlicensed loan companies caught will face judicial prosecution along with strong administrative measures such as cancellation of registration and suspension of business.”