Incheon City will conduct joint inspections and crackdowns on loan businesses, in cooperation with the police and district and county offices, until the 24th to prevent citizens from falling victim to private loan scams.
The crackdown will target 32 loan companies located near major commercial districts with high demand for living and business funds, as well as those that have not been inspected for an extended period. There are 436 registered loan businesses in Incheon. Earlier this year, the city also identified and corrected violations such as exceeding the legal interest rate and false or exaggerated advertising through similar inspections.
Illegal Loan Business Illustration
This crackdown will begin in Namdong District on the 15th and proceed sequentially through Bupyeong District, Gyeyang District, Jung District, Dong District, Michuhol District, Yeonsu District, and Seo District. Ganghwa County will conduct its own inspections.
The inspections will focus on the status of fixed business locations, the preparation, retention, and posting of loan contracts, compliance with obligations, excessive lending, adherence to the legal interest rate limit, proper conduct of debt collection work, and the presence of false or exaggerated advertising.
If violations are found, the city will take administrative actions such as canceling business registrations, suspending operations, and imposing fines. For violations subject to criminal penalties, the city will request investigations by the police.
An official from Incheon City stated, "Through these inspections, we aim to promote the sound operation of loan businesses and create an environment where citizens can access safe and legal private financial services."
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