Prosecutors Arrest and Indict Unregistered Loan Shark for Pocketing 900 Million Won in Illegal Interest

A man in his 20s operating an unregistered lending business was indicted while in custody for illegally charging interest rates exceeding the legal limit from debtors, earning a profit of over 900 million won.

The Criminal Division 4 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Yoo Hyo-je) announced on the 20th that it had arrested and indicted Mr. A, an unregistered lender, on charges of violating the Act on Registration of Credit Business and Protection of Finance Users, as well as the Act on the Regulation and Punishment of Criminal Proceeds Concealment.

Mr. A is accused of charging interest rates exceeding the legal limit of 20% to 485 people from October 2021 to last April, earning a total profit of 990 million won.

Earlier, the police transferred Mr. A to the prosecution on the 1st for allegedly extorting 290 million won in illegal interest from 263 debtors and threatening them. Through supplementary investigations, the prosecution additionally confirmed that Mr. A earned 700 million won in illegal interest from 222 people.

The prosecution confirmed that Mr. A concealed criminal proceeds through nominee accounts he acquired under the condition of reducing interest for debtors.

The prosecution stated, "The confirmed criminal proceeds will be recovered through seizure and preservation," and added, "We will strictly respond to illegal private financing crimes targeting vulnerable groups."