Cooperation Between Kakao and Authorities
to Block Accounts Used for Illegal Debt Collection
Starting tomorrow, illegal private lenders will be blocked from using KakaoTalk accounts. In the event of illegal private lending damage, users will be able to immediately report it through the KakaoTalk application (app).
On June 15, the Financial Supervisory Service announced that, beginning the following day, it will jointly suspend the use of KakaoTalk accounts by illegal private lenders in cooperation with Kakao.
The Financial Supervisory Service determined that it was necessary to expand the channels subject to suspension, as illegal private lenders have recently been using social networking services (SNS) rather than phone calls or text messages during illegal debt collection activities.
Going forward, if debtors, their family members, acquaintances, or coworkers are subjected to illegal debt collection activities such as verbal abuse, threats, or repeated contact at night, they can immediately report it through KakaoTalk.
The same applies to cases where a third party, other than the debtor, is informed of the debt or is asked to repay the debt on the debtor's behalf.
Acts such as illegal private lenders (who are not registered loan businesses) lending money via KakaoTalk by demanding promissory notes or similar documents are also subject to reporting.
To report illegal private lending activities, users should delete the perpetrator’s account from their KakaoTalk friends list and then click the upper right corner of the chat window to file a report.
The Financial Supervisory Service also plans to enable illegal private lending damage reports through its website starting next month.
Previously, the Financial Supervisory Service had suspended the use of phone numbers used in illegal lending advertisements.
Beginning July 22, the system for suspending phone number use will be expanded to cover all illegal lending activities and debt collection practices.
The Financial Supervisory Service expects that suspending KakaoTalk account use by illegal private lenders and expanding the suspension of phone numbers will make a significant contribution to protecting ordinary citizens and vulnerable groups.
A representative from the Financial Supervisory Service stated, "We will continue to monitor the business practices of illegal private lenders and cooperate with relevant agencies to continuously improve the system, thereby working to prevent illegal private lending damage and provide post-incident relief."
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