Phone, KakaoTalk, and LINE Services to Be Cut Off for Illegal Debt Collection and Lending Activities

Previously Applied Only to Illegal Loan Advertisement Calls...
Expansion Begins on the 22nd
Stricter Regulations for SNS
LINE Accounts to Be Blocked Following Kakao

If an illegal private lender is found to have engaged in unlawful debt collection or lending activities targeting consumers, their phone service will be suspended. Social networking service (SNS) accounts, such as KakaoTalk and LINE, will also be disconnected.

The Financial Supervisory Service announced on July 20 that, starting July 22, it will expand the scope of its phone number suspension policy for illegal private lenders from illegal loan advertisements to include all illegal debt collection and lending activities.

Illegal debt collection refers to acts of pressuring debtors, their family members, or acquaintances through abusive language or threats. It also includes contacting them repeatedly without legitimate reason or making contact at night.

Illegal lending activities refer to unregistered private lenders demanding promissory notes or similar documents via text message and providing loans at high interest rates. Business practices that exceed the legal maximum interest rate (20% per year) are also included.

Regulations on SNS and messenger services will also be strengthened. Following the restriction of illegal private lenders’ KakaoTalk accounts on June 16, the policy will be extended to LINE accounts starting July 22.

If consumers suffer harm through phone calls, text messages, KakaoTalk, or LINE, they can report the lender’s phone number or KakaoTalk/LINE account via the Financial Supervisory Service website or the respective application (app).

Once a complaint is filed through the Financial Supervisory Service, KakaoTalk, or LINE app, the Ministry of Science and ICT and telecommunications companies will take action by disconnecting the lender’s phone number after review.

A Financial Supervisory Service official stated, “Expanding the phone number suspension policy and restricting KakaoTalk and LINE accounts will significantly contribute to blocking financial crimes that threaten people’s livelihoods and to protecting vulnerable groups from illegal private lenders.”