Violation of the Loan Business Act and Debt Collection Act
Loans at high interest rates ranging from 2409% to 5214%
A loan shark who lent money at high interest rates and threatened multiple victims, including a woman in her 30s raising a child alone, has been brought to trial while in custody.
On the 5th, the Seoul Northern District Prosecutors' Office announced that it had indicted a man in his 30s, Mr. A, on the 2nd on charges of violating the Loan Business Act and the Debt Collection Act. Along with this, they also requested seizure preservation of Mr. A’s assets to recover criminal proceeds. Seizure preservation is a measure that freezes specific assets so that the defendant cannot transfer or sell them.
According to the prosecution, from July to November of last year, Mr. A is accused of illegally lending a total of 17.6 million won at exorbitant annual interest rates ranging from 2409% to 5214% to six socially vulnerable victims without registering as a loan business operator. He also engaged in illegal debt collection activities, such as sending threatening messages to the families and acquaintances of the debtors. Additionally, the prosecution discovered that Mr. A used bank accounts and mobile phones registered under other people’s names to operate his loan business.
Previously, the prosecution investigated a case where a single mother in her 30s who borrowed money from an illegal lender was driven to an extreme choice due to illegal debt collection. As a result, it was confirmed that Mr. A had been conducting illegal loan business and debt collection activities for several months, and that there were five additional victims besides those in this case.
A prosecution official stated, "We will do our utmost to maintain the prosecution and recover criminal proceeds so that the defendant receives punishment commensurate with his crimes, and we will continue to respond strictly to illegal private financing crimes in the future."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
