Most people think of high-interest loan sharks when they hear the word "lend." Images of tattooed thugs in flashy shirts, bags tucked under their armpits, and coming to homes to cause a ruckus while collecting money flash through the mind. Such delinquent lenders often appear in movies or dramas. In the globally popular drama "Squid Game," the lender threatens the main character Gi-hun (Lee Jung-jae) into signing a waiver.
For a long time, the lending industry has contemplated ways to change this negative perception. This is because many financial consumers view registered lenders as illegal moneylenders and have turned away from them. There is a clear distinction between formal registered lending recognized by the government and illegal money financing. However, consumers have found it difficult to differentiate between the two. After much deliberation, the lending industry proposed an idea to completely change the name "lend." This means to use a new designation instead of the word lend.
Currently, the lending financial association is gradually moving toward the introduction of a new designation. In December of last year, lawmaker Park Soo-young of the People Power Party proposed an amendment to the lending law that would allow only outstanding lenders to change their business names to "living finance." Under the current law, lending companies must include the word "lend" in their business name. Outstanding lenders are those who have contributed to financing low-credit individuals, and financial authorities are selectively providing them with benefits. Park's amendment aims to gradually remove the term lend from the signs of outstanding lenders and transform the industry's image. This bill is also the result of several years of communication between the lending association and lawmaker Park.
However, the name cannot be changed overnight. The lending association is also running an advertising campaign to change consumer perception. This time, Chairman Jeong Seong-woong of the lending association has directly participated. Starting in April, a radio advertisement featuring Chairman Jeong's voice is set to air. Chairman Jeong will take part in an advertising campaign warning against the use of illegal money financing and encouraging the use of formal registered lending. This marks the first time a chairman of the lending association has appeared in a radio advertisement to improve the industry's image.
The lending association has already started a radio advertisement using general voice actors from this month. The 20-second advertisement includes an explanation that registered lending is legal financing and not illegal money financing. It also advises to seek help from the Financial Supervisory Service for loan-related issues and from the lending association for debt adjustment. The lending association is currently broadcasting three radio advertisements with this content nationwide. Additionally, discussions are ongoing for YouTube and broadcast advertisement ideas, aiming for implementation in the second half of the year. All advertisements are expected to emphasize the distinction between registered lending and illegal money financing, highlighting that formal lending companies are part of the regulated financial sector.
The lending association emphasizes that it must wash away the negative perception that has long plagued the word "lend" for the entire industry to thrive. A representative from the lending association noted, "For over 20 years, the mixing of registered and unregistered lending in the law has led to formal lending companies being recognized like illegal money financing." They added, "We expect that the image improvement campaign will reduce consumer damages caused by the confusion between lending and illegal money financing and that positive effects will emerge from further revitalization of small-scale finance."