FSS "Illegal Sale and Unauthorized Leakage of Personal Information Detected in Loan Brokerage Platform"

On the 22nd, the Financial Supervisory Service (FSS) announced that it had uncovered illegal sales of personal credit information and unauthorized leakage of personal data by loan brokerage platforms through a joint inspection with the Gyeonggi Provincial Government, the National Police Agency, and the Financial Security Institute.

The FSS conducted a joint inspection of seven loan brokerage platforms registered in Gyeonggi Province. Supervision of loan businesses is divided: large loan businesses (corporations with assets exceeding 10 billion KRW) are overseen by the Financial Services Commission and the FSS, while small and medium-sized loan businesses are managed by local governments.

According to the FSS, Loan Brokerage A was found to have sold personal credit information of approximately 200,000 individuals to not only loan businesses but also illegal private lenders without customer consent, charging between 1,000 and 5,000 KRW per case. The FSS referred the case to the police for investigation on suspicion of violating the Credit Information Act.

Loan Brokerages B and C promoted on their websites that they only handled advertisements from registered loan businesses, claiming safety; however, they actually posted advertisements from illegal private lenders. As a result, they are scheduled to receive a three-month business suspension and a fine of 2 million KRW for false and exaggerated advertising. Illegal private lenders who requested the advertisements will also be referred for investigation on suspicion of violating loan business regulations.

Loan Brokerages D, E, and F were suspected of unauthorized leakage of personal information to illegal private lenders due to hacking by third parties. Accordingly, these companies requested police investigations to verify violations of the Information and Communications Network Act and the Personal Information Protection Act caused by hacking, and the joint inspection team guided them to improve security vulnerabilities.

The FSS added, "To prevent damage to vulnerable low-income groups caused by illegal private lending and unlawful acts by loan businesses, we will continue to strengthen cooperation and support with local governments and investigative agencies nationwide."