One-Stop Support for Victims of Illegal Private Lending Available Online Starting Nov. 16

Applications accepted 24/7 via Credit Counseling and Recovery Service website and app
987 people reported 7,231 cases of illegal debt in eight months

Going forward, victims of illegal private lending will be able to apply for relief services online without having to visit an Integrated Support Center for Microfinance in person.

The Financial Services Commission said on November 15 that the “One-Stop Comprehensive and Dedicated Support for Victims of Illegal Private Lending” service will be available through the Credit Counseling and Recovery Service website and mobile app starting November 16.

Previously, victims had to visit an Integrated Support Center for Microfinance in person. Going forward, they can apply 24 hours a day by completing identity verification online and entering information about the illegal lender and the amount of damage.

Once an application is received, a dedicated caseworker will be assigned to each victim to help prepare a report on the damage. The caseworker will also warn the illegal lender to stop unlawful debt collection and demand that the debt be settled. The service will then help victims appoint a debtors’ representative, obtain a certificate confirming the invalidity of an antisocial lending contract, request a police investigation, and access debt adjustment and other integrated support.

In the approximately eight months since the one-stop support service was launched, 1,239 people have received consultations about their cases. Of these, 987 reported 7,231 cases of illegal debt, an average of approximately 7.3 cases per person. The Credit Counseling and Recovery Service demanded that unlawful debt collection stop and that debts be settled in 5,469 cases, securing agreements to settle debts in 776 of them. It also connected 186 victims with necessary support, including debt adjustment, policy-based microfinance, and employment and welfare counseling.

The Financial Supervisory Service issued 192 certificates confirming the invalidity of antisocial lending contracts. In 2,623 cases, it helped appoint debtors’ representatives through referrals to the Korea Legal Aid Corporation to respond to continued debt collection. It also requested police investigations into 1,178 illegal private lenders suspected of criminal activity.

Under the revised Loan Business Act, which took effect in July 2025, antisocial lending contracts, including those with annual interest rates exceeding 60%, are invalid in their entirety, including both the principal and interest.

An FSC official said, “In December, we plan to assign police officers to the Credit Counseling and Recovery Service and improve procedures so that requests for investigations can also be made during the consultation stage. We will regularly review how the one-stop support service is operating and improve the system so that it can serve as an effective channel for protecting victims, while strengthening public awareness and guidance about the relevant programs.”

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