Yoon Declares 'War on Illegal Private Loans'... "There Must Also Be Relief Measures for Ordinary People"

President Yoon Suk-yeol defined illegal private loans as "malicious criminals who suck the blood of the weak" and demanded 'strong punishment' from related ministries. Meanwhile, economic civic groups pointed out that not only 'judicial measures' but also relief measures for ordinary citizens should be implemented simultaneously.

Kim Deuk-ui, Executive Director of the Financial Justice Solidarity, said on the 10th on MBC's 'Kim Jong-bae's Focus' program, "Everyone welcomes and I also welcome the eradication and punishment of illegal private loans, but I think the phrase 'sucking blood' is somewhat unrefined as a presidential remark and seems too extreme."

[Image source=Yonhap News]

Kim, the executive director, criticized, "Looking at the attendees, such as Minister of Justice Han Dong-hoon and Financial Supervisory Service Governor Lee Bok-hyun, all of whom are former prosecutors, the policy alternatives only focus on punishment, confiscation of criminal proceeds, and increasing sentencing guidelines. Because of this, it seemed more like the Prosecutor General rather than the President."

He argued that the president, who is a former Prosecutor General, focused excessively on judicial aspects. Kim said, "Why are we driven to illegal private loans? For multiple debtors, credit card companies are currently reducing cash service limits. The system is such that if cash services are unavailable, they turn to loan companies, and if those are unavailable, they resort to unregistered illegal private loans with exorbitant interest rates. There is a need for actual relief policies for ordinary citizens who are forced into multiple debts and have no choice but to use illegal private loans."

He added, "Even if the government provides a relief loan of 1 million won now, an enormous number of people apply. I wish such matters were also discussed." This means that relief loans for ordinary citizens should be provided so that they can remain within the formal financial system.

On the 9th, at the 'Illegal Private Loans Livelihood Field Meeting' held at the Financial Supervisory Service, President Yoon declared a 'war on illegal private loans,' saying, "Malicious criminals who suck the blood of the weak must be strongly punished so that they regret their crimes for life, and if necessary, legal amendments and increased sentencing guidelines should be pursued."

Regarding this, he instructed the Supreme Prosecutors' Office to "build a database on sentencing for types of criminal cases related to illegal private loans and supplement sentencing data to ensure heavy sentences are imposed," and directed the Financial Supervisory Service and the Office for Government Policy Coordination to "expand livelihood finance for ordinary citizens to block their contact with illegal private loans and to improve personal bankruptcy and credit recovery procedures."

The Ministry of Justice, the day after President Yoon's directive, announced plans to apply the 'Act on the Punishment of Stalking Crimes, etc.' (Stalking Punishment Act) to excessive debt collection practices by illegal private loan operators. Minister Han said, "In cases where creditors or others cause continuous and repeated anxiety and fear to victims, cohabitants, or family members during the debt collection process, the Debt Collection Act will be strictly applied, and the Stalking Punishment Act will also be actively enforced."