Six Out of Ten Seeking Relief from Illegal Private Lending Are in Their 20s and 30s: Calls to Block Exposure Pathways

Damage Reports and Consultations Rise from 11,000 in 2022 to 18,000 in 2025

Debtor Representative Applications Increase from 653 in 2024 to 1,784 in 2025

Six out of every ten people who requested relief from illegal private lending practices were found to be in their 20s and 30s. There are growing calls for preemptive measures to block the pathways through which young people are being exposed to illegal private financing, by first identifying exactly how these exposures occur.

According to data received by the office of National Assembly member Sohn Myoungsoo, a member of the National Policy Committee, from the Financial Supervisory Service on September 28, the number of reports and consultations regarding damages filed with the 'Illegal Private Lending Victim Report Center' increased from 10,913 in 2022 to 13,751 in 2023, 15,397 in 2024, and 17,538 last year. This represents a 60.7% increase over three years. As of the end of June this year, 10,037 cases have already been documented, surpassing half of last year's figure. Reports related to unregistered loan sharks more than doubled, rising from 4,617 in 2022 to 9,293 last year.

The rise extends beyond just the scale of illegal financing damage; the number of illegal debt collection cases has also surged. Reports related to debt collection increased from 1,109 in 2022 to 4,280 last year, approximately a 3.9-fold jump.

The increase was particularly notable among the '2030' youth demographic. Looking at the applications for 'Free Support for Debtor Representatives and Litigation Lawyers,' which help defend victims against illegal debt collection, out of a total of 2,260 cases filed from January to June this year, 664 cases (29.4%) were from those aged 20 and under while 764 cases (33.8%) were from those in their 30s. Combined, this amounts to 63.2%. The share of those in their 20s and 30s requesting relief was 73% in 2022, 61.3% in 2023, 62.5% in 2024, and 63.6% last year, and 63.2% so far this year. Over the past five years, more than six in ten people requesting relief were young adults in their 30s and younger.

The upward trend in applications is even steeper. Applications by those aged 20 and under and in their 30s rose from 904 in 2022, to 616 in 2023, 653 in 2024, and surged to 1,784 last year. In the case of last year, the figure jumped by about 2.7 times compared to the previous year. This year alone, the first half already saw 1,428 cases.

The office of Assemblyman Sohn noted that with the current regulatory data, it remains difficult to accurately identify the channels through which youth are being exposed to illegal private lending, or to fully grasp the scale of the damage. They pointed out the need for more granular analysis of issues such as how much bank loan rejections or credit downgrades are leading to illegal financing, and what types of financial transactions young victims are engaging in before being drawn into illicit markets.

Assemblyman Sohn stated, "Financial authorities must take seriously the fact that over six in ten people seeking relief from illegal private lending are in their 20s or 30s," adding, "The government needs to gain a precise understanding of how youth are being exposed to illegal private lending, and implement preemptive measures to block these pathways, thereby refining policy support for young adults."

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