Gyeonggi Province has uncovered a total of 154 violations through crackdowns on illegal activities by lending companies within the province.
Gyeonggi Province announced on the 30th that from April 22 to May 31, it conducted on-site inspections targeting 273 lending (brokerage) companies, accounting for 18.5% of the total 1,474 companies in the province, and detected a total of 154 violations.
Through this crackdown, Gyeonggi Province took measures including ▲80 cases of license cancellations ▲65 cases of administrative guidance ▲9 cases of fines imposed.
The main reasons for the 80 license cancellations were voluntary closures (42 cases) due to increased funding costs caused by the recent economic downturn and high interest rates, and unknown business locations (38 cases), resulting in cancellations by authority. License cancellation is a measure to eradicate illegal business activities.
Administrative guidance accounted for 65 cases, including 15 cases of no business performance for over six months, 17 cases of inadequate contract documentation, and 33 other cases such as partial omission of supporting documents and minor negligence in posting.
Prior to this inspection, Gyeonggi Province provided training to city and county officials on the on-site inspection process and key inspection items. This strengthened the capabilities of the officials and enhanced the effectiveness of the inspections.
Kim Gwang-deok, Director of the Regional Finance Division of Gyeonggi Province, stated, "Through the first half on-site inspections, we took appropriate administrative actions and guidance on violations. We will continue to encourage compliance by lending (brokerage) companies and strive to prevent damages to lending users."
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