Busan Police Arrest Group for Illegal Foreign Loan Sharking and Hold'em Pub Operation

15 Members of Vietnamese Crime Organization Arrested, 3 Main Suspects Detained

Exploited Weaknesses Like Illegal Stay, Charged Up to 11,790% Annual Interest

The Busan Metropolitan Police Agency (Commissioner Woo Cheolmun) has arrested 15 members of a Vietnamese criminal organization, including the ringleader A (43, male), for operating an unregistered high-interest loan business, illegal debt collection, and running an illegal hold'em pub exclusively for foreigners, targeting hundreds of Vietnamese nationals residing in Korea. Three main suspects have been detained on charges including violation of the Lending Business Act, violation of the Debt Collection Act, and illegal gambling operation, while 12 others have been referred without detention.

Since around June 2021 until April this year, the loan organization established a systematic structure with roles such as ringleader, recruiter, and collector. They recruited 250 victims, mainly Vietnamese nationals and naturalized citizens, through loan advertisements on social media. The group lent out approximately 3.4 billion KRW and collected interest rates as high as 11,790% per annum, obtaining illegal profits of about 1.5 billion KRW.

If debtors failed to repay within the agreed period, the group exploited the active online communities of foreigners residing in Korea by posting the debtors' personal information on social media and sending threatening messages, engaging in illegal debt collection practices.

The loan organization also funneled gambling funds to an illegal hold'em pub disguised as a billiard hall in Sasang-gu, exclusively for foreigners.

The hold'em pub operation group maintained a contactless communication system via social media from around August 2023 to April 2024, accepting gambling applications and allowing only verified guests such as international students and foreign workers to participate.

They installed CCTV inside and outside the hold'em pub to evade law enforcement crackdowns and acquired illegal profits of about 100 million KRW through covert currency exchange methods linked to a foreigner club in the same building.

This case, targeting foreigners residing in Korea, exploited the fact that foreigners have difficulty obtaining loans from domestic financial institutions and that many debtors are undocumented, making them reluctant to report to authorities. The profits from these crimes were used to purchase luxury foreign cars, designer goods, and jewelry, allowing the suspects to maintain a lavish lifestyle.

A police official stated, "In order to strongly respond to the increasing number of crimes involving foreigners, we conducted this crackdown in cooperation with 17 members of the Busan Immigration Office," and added, "We will continue to make every effort to respond to all types of foreigner-related crimes, including financial crimes and drug smuggling."