Targeting Japanese Women Trapped by Host Clubs
Korean Man Arrested on High-Interest Loan Charges
Three Suspects Arrested for Investment Law Violations
Lending Money at Exorbitant Rates to Nightlife Workers
A Korean man in his 50s has been arrested on suspicion of operating an illegal high-interest loan business in Tokyo's entertainment district, which is known for its concentration of host clubs. The man is accused of running an illicit loan operation targeting women who had accumulated unpaid bar tabs or those working in nightlife establishments.
According to reports from the Asahi Shimbun and Yomiuri Shimbun on September 29, the Tokyo Metropolitan Police announced the arrest of a 52-year-old Korean national, identified as Mr. A, along with two Japanese men, on charges of violating the Investment Law (charging excessive interest).
Investigations revealed that in March 2023, the suspects lent 500,000 yen (approximately 470,000 won) to a woman in her 20s working at a nightlife establishment in Kabukicho, Shinjuku, Tokyo, and collected about 4 million yen (approximately 3.8 million won) in interest by March this year. The daily interest rate was around 1.07%, far exceeding the legal annual cap of 20%.
The case came to light in April this year when one of the victims sought help from the police, stating that she could no longer repay the debt.
Mr. A and his accomplices reportedly used luxury vehicles such as black Mercedes-Benz or Lexus cars, making rounds in the Kabukicho area about once every ten days. They would lend cash or collect interest payments directly from victims inside the cars. It is known that they targeted women who had accumulated large unpaid bills at host clubs or those working in nightlife venues facing financial difficulties, lending them money and then collecting exorbitant interest rates.
Japanese investment law stipulates that lenders cannot charge interest exceeding 20% per annum. In particular, ultra-high-interest contracts with daily rates over 0.3% (109.5% annually) can result in up to 10 years in prison or fines up to 30 million yen (about 28 million won). The interest rates applied by Mr. A's group far exceeded these legal limits.
The police believe the suspects may have targeted multiple women and are expanding their investigation. Authorities estimate that the group lent approximately 8 million yen (about 7.5 million won) to various women and collected around 22 million yen (about 20.7 million won) in interest.
Meanwhile, some point to Japanese host club culture as a background factor in this case. In Japan, it is common for female customers to take on significant debt by purchasing expensive drinks and food on credit to boost the sales of male hosts.
Certain unscrupulous clubs have sparked controversy by psychologically manipulating female customers and extorting money from them in order to increase sales. Analysts note that, due to such practices, women burdened with tens of millions of yen in debt often find themselves unable to access mainstream financial services, leading to frequent reliance on illegal loan sharks.
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