1st Trial: Sentenced to 3 Years Imprisonment and 2 Years 6 Months Imprisonment
Also Ordered to Forfeit 460 Million Won and 144 Million Won
Two members in their 20s of an illegal private loan crime group known as the 'Gangsiljang Organization,' which provided small loans to low-income citizens and then pocketed huge illegal profits through exorbitant interest rates exceeding 5000% per annum and illegal debt collection, were sentenced to prison.
On the 1st, Judge Kim Dohyung of the Chuncheon District Court Wonju Branch Criminal Division 1 announced that A (29) and B (23), who were indicted on charges including joining and participating in a criminal organization, violating the Act on Registration of Credit Business and Protection of Finance Users, were sentenced to three years and two years and six months in prison, respectively. Additionally, A was ordered to pay a fine of 460 million KRW, and B was ordered to pay 144 million KRW.
A was tried for unregistered lending activities while serving as 'Min Gwa-jang' from May 2021 to September last year in the illegal private loan crime group known as the 'Gangsiljang' organization, and B was tried for similar charges while holding the positions of 'Yong Daeri,' 'Yong Team Leader,' and 'Yong Director' from October 2021 to November last year.
They conspired with about 80 members of the organization, including the leader 'Gangsiljang,' to illegally advertise through an internet loan brokerage platform with phrases such as 'Anyone with overdue payments can get a loan,' collecting extremely high interest rates exceeding 5000% per annum from low-income citizens in urgent need of funds. A lent 1,802,230,000 KRW over 4,584 transactions, and B lent 2,160,150,000 KRW over 5,552 transactions, charging murderous interest rates ranging from 704.39% to 5214.29% per annum.
The Gangsiljang organization, including these two, was found to have pocketed more than 3 billion KRW in illegal profits through small and short-term loans, such as lending 200,000 KRW and collecting 380,000 KRW a week later. For example, a victim who borrowed 250,000 KRW ended up owing 1.5 billion KRW within three months.
It was also revealed that A and others threatened debtors during the debt collection process. They obtained contact information of debtors' family members and acquaintances under the pretext of an emergency contact network when executing loans. Subsequently, A threatened the families of debtors who failed to repay principal and interest properly 304 times, and B did so 337 times. They sent text messages stating, "I borrowed private money from personal loans and sold all personal information including acquaintances, family, workplace, and address."
The court pointed out, "The defendants joined and participated in a criminal organization formed to profit from murderous interest rates and illegal debt collection by providing small loans to many debtors in dire financial situations," and added, "They must bear corresponding responsibility as they obtained enormous criminal proceeds." Regarding sentencing, the court explained, "Consideration was given to A being a first-time offender and B having deposited 5 million KRW for some victims."
Earlier, the Gangwon Provincial Police Agency arrested 123 members of the illegal private loan crime group known as the 'Gangsiljang Organization,' and the Chuncheon District Prosecutors' Office Wonju Branch arrested 10 key members in June on charges including organizing and participating in a criminal organization.
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