"I needed living expenses. It all started when I shared my feelings of depression with others in similar situations in a KakaoTalk open chat room. At that time, someone offered comforting words and introduced me to a loan. I never imagined they would be illegal money lenders. They lent me money while asking me to install a large file transfer application on my phone and took all my saved contacts, and from then on, it was a series of threats I wish to forget."
Kim Juyun (pseudonym, 30), who interviewed on behalf of her younger sister Kim Miyeon (pseudonym, 28), who was hospitalized in a mental health facility due to harassment from illegal debt collectors, suppressed her overwhelming emotions and said this. Miyeon borrowed money in November last year. An anonymous friend, whom she had become close enough to share stories she couldn't tell her family, introduced her to a representative named Cha. The bad relationship with Cha started without knowing his name, face, or even his contact information.
◇ Loan recruitment, consultation, and collection all done 'non-face-to-face'
Recently, illegal private lending has been characterized by being conducted entirely 'non-face-to-face,' including recruitment, consultation, and collection. First, people in need of immediate funds are gathered through KakaoTalk open chat rooms or online lending brokerage sites. They are invited to mobile messenger chat rooms like KakaoTalk and Telegram for loan consultations, and after taking identification cards and personal contacts as collateral, they lend money.
While direct collection that uses violence leaves physical bruises, non-face-to-face collection harms the mind. In mid-December, when Miyeon couldn't repay the loan on time, threats disguised as collection began. Cha sent threatening messages at all hours to Miyeon, Juyun, and their family, claiming he would "kill" them, and called with abusive language that couldn't be repeated. Blocking Cha's KakaoTalk account was useless. Cha and his group repeatedly called until they received payment, relentlessly tormenting Miyeon and her family. Miyeon did not know who they were, but they all knew her.
They also sent text messages to people from Miyeon's relatives and family who attend church to threaten them. A message that included a photo of Miyeon holding her identification card stated, 'XX sold your information and borrowed money. Until you pay back, you will also suffer.' Juyun sobbed, saying, "My mom, who jumps at the sound of the doorbell, is taking psychiatric medication, and my sister even attempted an extreme choice."
◇ Posting photos on social media and openly sharing personal information
Victims of illegal private lending are increasingly focusing on debt collection. According to the Financial Supervisory Service, the number of victim consultations and reports received at the illegal private lending victim reporting center rose by 71% from 8,043 cases in 2020 to 13,751 cases in 2023. Among these, the number of debt collection consultations and reports increased from 580 in 2020 to 869 in 2021, 1,109 in 2022, 1,985 in 2023, and 2,429 in 2024, a fivefold surge over four years.
This is because non-face-to-face collections have increased, and the methods have evolved in a malicious manner. Just like in Miyeon's case, it has gone beyond simply notifying acquaintances that money is not being repaid, to frequently posting images and messages on social media (SNS) visible to everyone, committing 'identity murder.' Searching hashtags like #moneytransaction and #scammer on Instagram yields countless images and videos of debtors who have not repaid their loans.
Typically, it is a picture or video taken with an upper body photo holding an identification card or loan agreement, but personal information such as names, resident registration numbers, mobile phone numbers, and addresses is fully exposed without any concealment. Malicious statements have also crossed the line. Tags like 'X working at a sex work establishment' or 'X the gambling addict' are used, indiscriminately sharing debtors' occupations, workplace names, and physical characteristics. Lee Mina (pseudonym, 21) is also a victim of 'face plastering' on social media. Multiple debtor photos were posted on Mina's informant's Instagram account as well.
◇ "We need to strengthen penalties for disposable phones and accounts"
"When I couldn't repay the money immediately, they told me to take a photo holding my ID in a way that my face was visible. Then they tagged my Instagram ID and posted the photo. That wasn't the end, though. At first, they asked me to send a video of me dancing, then it escalated to semi-nude and nude photos. Unable to stand it anymore, I reported it to the police, and it was quiet for a month. But one day, a stranger invited me to a chat room and demanded, "Pay the money." When I asked who they were, they said, "Your master," and sent old photos and videos. It felt like the sky was falling down."
Illegal money lenders do not easily let debtors go. When a police investigation begins and they fear being caught, they change the disposable phones they are using and approach the debtor again one or two months later. Mina also experienced a similar method. She stated, "Even after reporting to the police, nothing changed," adding, "When I reported that they were 'threatening me again,' I was told it would be difficult to trace because it was a disposable phone and just to 'block the number.'" Juyun said, "I submitted all the evidence to the police, but they said it was difficult to identify perpetrators, so they wouldn't be caught anyway," asserting, "Illegal collection is rampant because there is no proper crackdown on disposable phones and accounts."
Experts argue that to prevent non-face-to-face illegal collections, penalties for opening disposable phones and accounts must be strengthened. Cha Sang-jin, a lawyer at the illegal loan recovery center, said, "We need to strengthen administrative sanctions against users of disposable phones and accounts, which are central to illegal collections conducted online," adding, "While increasing the severity of penalties is important, many cases don't end up being properly reported due to the long process and complexity of prosecuting, so imposing penalty surcharges and fines immediately could be considered."
Lawyer Cha stated, "Just like the immediate freezing of accounts suspected of voice phishing, it would be effective to immediately stop accounts suspected of illegal collections after receiving reports," adding that "blocking phone calls and texts from illegal money lenders using the report's phone number in cooperation with telecom companies is also one method."