[Exclusive] 400 Threatened With Quick Cash Bait... 20s Illegal Private Lender Detained and Transferred

Targeting financially struggling individuals with unregistered lending

Total loan amount reaches 600 million won... Ongoing investigation into additional victims and accomplices

A man in his 20s who operated an unregistered lending business under aliases such as 'Manager Jang,' providing loans totaling about 600 million won to those facing financial difficulties and engaging in illegal debt collection activities, has been handed over to the prosecution while in custody. Police are expanding their investigation, believing there may be accomplices or additional victims in this case that has produced hundreds of victims.

Yeongdeungpo Police Station, Seoul. Photo by Jiye Lee.

On August 6, the Yeongdeungpo Police Station in Seoul announced that it had detained and transferred Mr. A, a man in his 20s, to the prosecution on charges of violating the Act on Registration of Credit Business and Protection of Finance Users and the Act on Collection of Claims.

According to the police, Mr. A operated an unregistered lending business from around 2024 until recently, providing about 580 million won in loans and illegally collecting debts by threatening borrowers who could not repay their loans.

A police investigation found that Mr. A used multiple aliases, including 'Jang Siljang,' 'Jang Saeyeon,' and 'Lee Hyowon,' to approach people experiencing financial hardship and provide them with illegal loans. It was revealed that he intimidated borrowers who could not pay back their debts by threatening to "tell their families." The number of confirmed victims is estimated to be as many as 400, and police continue to investigate, expecting there may be additional victims.

Eight accounts at financial institutions, including KakaoBank, TossBank, K-Bank, and NongHyup, were used in the crime. Police are tracking the flow of funds while investigating for possible accomplices. A police official advised, "Small loans from unclear sources are likely to lead to high interest rates and illegal debt collection. People should avoid using them."

Most illegal private lenders operate anonymously without registering with financial authorities. They approach people who have difficulty using the formal financial system with advertising messages targeting their financial struggles. It has also been confirmed that databases containing contact information for scam victims and loan applicants are traded among criminal organizations.

Meanwhile, the government has recently ramped up efforts to eradicate illegal private lending. On July 15, President Lee Jaemyung publicly warned via social media that "illegal high-interest lending will be thoroughly cracked down on and severely punished."

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