The ringleader of an illegal lending operation, which lent money at annual interest rates exceeding 3,000% and, upon non-payment, created prostitution flyers using nude photos of debtors and distributed them to acquaintances, was apprehended by police after 10 months on the run.
On May 13, Seoul Dongdaemun Police Station announced that it had arrested 34 members of the organization, including the ringleader, a man in his 40s identified as A, on charges including organizing a criminal group, violating the Sexual Violence Punishment Act, violating the Loan Business Act, and violating the Debt Collection Act. Of these, six individuals have been taken into custody.
According to police, from July 2022 to around November 2023, the group is suspected of lending 300,000 won to young people with low credit and then demanding repayment of 500,000 won just one week later. When issuing loans, the organization collected nude photos, and if repayment was not made, they are accused of distributing the nude photos to the victims' acquaintances or sending abusive and threatening messages to those acquaintances. The amount extorted from 179 victims totaled approximately 1.16 billion won.
A, the ringleader, set up a small-loan promotional website and systematically operated illegal loan offices in the Jungnang and Dobong districts of Seoul. Inside the offices, soundproof booths were installed to provide spaces where members could verbally abuse and threaten victims.
In July last year, A failed to appear for a pretrial detention hearing and went into hiding, evading capture for about 10 months before being arrested while returning home after playing golf.
To prevent the distribution of nude photos, police have seized mobile phones and are working with the Digital Sex Crime Victim Support Center to delete the illicit videos. In addition, in cooperation with the Financial Supervisory Service and the Korea Legal Aid Corporation, they have filed lawsuits to confirm the invalidity of the loan contracts, and trials are ongoing.
A police official stated, "We will take strict action against illegal private lending operations targeting economically vulnerable people who seek small, urgent loans in difficult economic conditions."
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