Illegal Loan Shark Sentenced to Prison for Threats, Demanding Sex, and Charging 7,700% Annual Interest

"Interest Reduction Offered on Condition of Sexual Relations"
Court: "Barbaric Usury"

An illegal loan shark who threatened debtors and made excessive profits through usury has been sentenced to a heavy prison term. It was found that these individuals did not hesitate to threaten debtors struggling with debt with harm, or to offer to reduce interest if the debtor agreed to have sexual relations with them.

On July 20, Kang Geonwoo, the presiding judge of the Cheongju District Court Criminal Division 5, announced that he had sentenced Mr. A (56), who was tried on charges including violation of the Act on the Fair Collection of Claims and forgery of private documents, to five years in prison and a fine of 50 million won.

Mr. A was indicted for operating an unregistered lending business and making illicit gains of approximately 940 million won by charging interest rates as high as 133%, far exceeding the legal limit. For some victims who fell into arrears, the annual interest rate reached as high as 7,742%.

He was also charged with threatening debtors with harm if they failed to repay their debts, and with forging loan agreements without the debtors' knowledge. During the trial, Mr. A denied the charges, claiming that he had only invested money rather than lent it. However, the court rejected his claims, noting that there was not even a written agreement specifying the payment of profits or the return of the principal investment.

Judge Kang pointed out, "The fact that the defendant casually suggested to debtors that their interest could be reduced if they had sexual relations with him clearly demonstrates the barbarity of usury that disregards the rule of law."

He continued, "The defendant pressured debtors so that they could not testify about the harm they suffered, and those around him commented that 'he acts like a prosecutor and a judge.' This alone is enough to show just how reckless and arrogant the defendant is," he added.

The judge stated, "If the sentence imposed on the defendant were only at the average level for similar cases, it would not be enough to deter those who disregard the rule of law," and added, "A severe punishment is inevitable, especially as a warning against the widespread reality of illegal private lending."