Illegal Loan Company Threatening with "Naked Photo Distribution," Also Subject to Stalking Punishment Act

83 Victims of Ultra-High Interest Rates... 250 Million Won Loan
Contacted Acquaintances... Stalking Charges Added

An illegal loan shark gang that maliciously threatened victims by saying "I will distribute nude photos" has been brought to trial.

The Seoul Northern District Prosecutors' Office's Women and Children Crime Investigation Division (Chief Prosecutor Gumiok) on the 15th arrested and indicted four employees, including middle manager A (31), of the loan company on charges of illegal debt collection by demanding nude photos from those who failed to repay high-interest loans on time, and indicted B (31) without detention.

On the 29th, as the COVID-19 pandemic continues to persist, illegal loan business card-type flyers from private loan companies are scattered across the Insadong street in Jongno-gu, Seoul. Photo by Mun Ho-nam munonam@

According to the prosecution, from October last year to July this year, they lent more than 250 million won to 83 victims with low credit who found it difficult to get loans from regular financial institutions, and charged interest rates ranging from 3,476% to 24,333% per annum.

They lent 300,000 won and demanded repayment of 500,000 won after one week, and each time the delay period lengthened, they demanded additional interest under the name of "extension fees," charging interest far exceeding the legal maximum interest rate of 20% per annum.

If the victims failed to repay within the agreed period, they threatened them by sending nude photos they had obtained of the victims' family and acquaintances or posting them on social media. They also created prostitution flyer photos by synthesizing the debtor's face onto other images.

The prosecution added charges of violating the Stalking Punishment Act, considering that the gang repeatedly contacted the debtors and their families and acquaintances during the collection process, shouting and using abusive language.

Most of the victims were young people, small business owners, and credit delinquents who urgently needed money for living expenses or medical bills. One victim who borrowed 300,000 won for his mother's medical expenses was threatened by the gang, who verbally abused his mother and workplace over the phone, causing his mother to collapse and him to be fired from his job.

Another victim was threatened with the distribution of nude photos to her daughter's middle school if she did not repay the loan after the repayment was delayed.

Earlier, on the 13th, the Supreme Prosecutors' Office instructed all prosecution offices to strongly respond to illegal private loan crimes targeting the underprivileged and vulnerable groups. It announced that the Stalking Punishment Act would be applied to illegal loan sharks who unjustly approach debtors and their families under the pretext of debt collection.