President Lee: "Illegal High-Interest Private Loans to Be Strictly Cracked Down and Severely Punished"... 2,060 Arrested in 8 Months

Encouraging the Police: "I Ask Citizens to Report These Crimes"

Cases Surge 32% in One Year... 1,825 Incidents Detected, 76 Detained

"All Loan Agreements with Over 60% Annual Interest Are Invalid... Coercive Collection Is Also a Crime"

On July 15, President Lee Jae-myung emphasized the government's commitment to thoroughly crack down on and severely punish illegal high-interest private loans, urging citizens to actively report such offenses. This call follows a more than 30% year-on-year increase in cases of illegal private lending, as non-face-to-face loans facilitated online and through social network services (SNS) have become more widespread.

President Lee Jae-myung is speaking at the ministerial work report held at the Blue House State Reception Hall on the 15th. Twenty or more members of the "National Participation Group" attend each session of the work report, which is the second since his inauguration. July 15, 2026. Photo by Blue House Press Photographers Group, Yonhap News Agency

On the same day, President Lee posted on X (formerly Twitter), declaring, "Illegal high-interest private loans will be strictly cracked down on and severely punished," and added, "I would like to thank the hardworking police officers." He continued, "I also ask for active reporting from all citizens."

The president also stressed the importance of victims actively utilizing legal protections. He explained, "If the annual interest rate exceeds 20%, all interest charges are invalid and do not need to be paid. If a loan agreement sets an annual interest rate above 60%, the entire contract is invalid and the principal does not need to be repaid." He further stated, "Coercive debt collection efforts are also considered a crime."

According to a report attached to his post by the Presidential Office's National Security Secretary's Office, titled "Status and Measures for Combating Illegal Private Lending Crime Organizations," the police have been conducting a special crackdown on illegal private lending since November of last year through October of this year.

From November of last year to June of this year, during an eight-month period, police detected 1,825 illegal private lending cases, apprehended 2,060 individuals, and detained 76 of them. Compared to the same period in the previous year, the number of incidents rose from 2,784 to 3,685, an increase of 32.4%; the number of cases solved increased from 1,536 to 1,825, up 18.8%; and the number of people apprehended increased from 1,769 to 2,060, an increase of 16.4%.

Illegal private lending crimes have shown a sharp upward trend over the past three years. The number of cases rose from 2,126 in 2023 to 3,391 in 2024, and reached 5,519 last year. The 2025 figure represented a 62.8% surge compared to the previous year. The number of individuals apprehended also increased from 2,160 in 2023 to 3,425 in 2024, and 4,292 last year. The amount of assets confiscated prior to indictment, aimed at recovering criminal proceeds, also rose during the same period from 6.2 billion won to 18.7 billion won and then 30.9 billion won.

There are also signs that illegal private lending is evolving into corporate-style crimes with divided roles. Since last year, the police have identified three such organized crime groups. The Gyeonggi Nambu Police Agency’s Metropolitan Investigation Unit investigated a group that rented an apartment as an office and had a head, middle managers, and separate contract and collection teams; between May 2024 and May this year, they lent out 1.4 billion won illegally and pocketed 670 million won in interest. Thirty-three people were referred for prosecution, of whom 15 have been detained, and the police continue to investigate related money laundering operations.

The Gangwon Provincial Police Agency referred 46 members of a group to prosecutors for advertising "non-face-to-face quick loans" through an online brokerage site, illegally lending 2.2 billion won and sending threatening messages to borrowers in arrears. The Seoul Metropolitan Police Agency also apprehended 33 group members who advertised via SNS that "even people with bad credit can get a loan," illegally lent 1.8 billion won, and then threatened to disclose photos containing the borrowers’ personal information in case of default.

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