Illegal lenders who provided loans to victims in urgent need of cash at interest rates more than 100 times the legal limit, and then engaged in illegal debt collection practices such as assault and confinement, have been arrested and detained.
On July 15, the Anti-Corruption and Economic Crime Investigation Unit of the Gyeongnam Provincial Police Agency announced that it had arrested and detained four individuals, including a man in his 40s identified as A, on charges including high-interest unregistered lending, illegal debt collection, aggravated assault, coercion, and fraud.
According to the police, A and his accomplices are accused of lending a total of 590 million won to a victim in his 40s, identified as B, in four separate transactions without registering as lenders, applying an annual interest rate as high as 2,100%, and collecting a total of 1.02 billion won in principal and interest.
When B was unable to repay the principal and interest, they allegedly confined him in a vehicle and moved him to his residence and other locations, threatening to harm his family.
They are also accused of confining B in an officetel, assaulting him, and coercing him to repay the money through fraudulent means.
B was booked without detention on suspicion of repaying the debt by defrauding two lenders out of approximately 630 million won, by accepting money without delivering goods, as a result of their threats.
Following the initial investigation into two suspects named in the original complaint, the police identified two additional accomplices, apprehended the entire group, and referred all of them for detention and prosecution.
Additionally, to facilitate victim compensation, the police applied for a pre-indictment preservation order, and the court approved the preservation of approximately 300 million won in criminal proceeds.
An official from the Gyeongnam Provincial Police Agency advised, "When using a lending company, always check on the Financial Supervisory Service website to verify whether the company is registered. If you become a victim, report it immediately to the police or the Financial Supervisory Service."
The official added, "We will continue to crack down on unregistered lending and illegal debt collection targeting ordinary citizens to prevent further victimization."
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