Korea P2P Finance Association Launches Inspection of Illegal Online Private Loan Advertisements

Inspection of Online Advertisement Channels
"Blocking Policy Impersonation and False Advertising"

The Korea P2P Finance Association announced on July 24 that it will conduct a two-month intensive inspection of illegal online private loan advertisements in line with the enforcement of the revised Private Loan Business Act.

Seongwoong Jeong, President of the Korea P2P Finance Association. Photo by Jinhyung Kang aymsdream@

The inspection will target advertisements on portals, social media, and online communities that either omit the registration number of private loan companies or induce illegal loans by impersonating registered businesses.

Additionally, the main focus will be on advertisements that mislead consumers into thinking the products are government-backed or mainstream financial products by using phrases such as "government support" or "loans for ordinary people," as well as those that lower consumer vigilance by emphasizing accessibility with phrases like "loans available for those with bad credit" or "KakaoTalk 1:1 consultation."

The inspection will also cover advertisements embedded in blogs and posts, cases that mimic news articles to build trust, and indirect advertising methods through closed online communities.

The association will report any suspected cases of illegal private loan operators found among the collected advertisements to the Financial Supervisory Service. The Financial Supervisory Service, in cooperation with the Korea Communications Standards Commission, plans to take measures such as blocking advertisements and suspending the use of related phone numbers.

The association aims to block the spread of illegal advertisements and prevent consumer harm.

Seongwoong Jeong, President of the association, stated, "Due to the indiscriminate online advertisements by illegal private loan operators, it has become difficult to distinguish between registered private loan businesses and illegal private lenders, exposing financially vulnerable groups to harm." He added, "Through this inspection, the association will strive to eradicate illegal private loan advertisements and create an environment in the institutional private loan sector where financially vulnerable groups can use services with confidence."

This content was produced with the assistance of AI translation services.