The Financial Supervisory Service announced on the 20th that the 'telephone number cessation system' currently in operation to block illegal lending advertisements will be expanded to include illegal debt collection and illegal lending practices.
The financial authorities have been operating a system to block phone numbers used in illegal lending advertisements by unregistered lenders since October 2014.
With the revised Lending Business Act taking effect on the 22nd of this month, the scope of activities subject to the telephone number cessation will be expanded to include 'illegal debt collection (such as insults and threats) and illegal lending practices (such as exceeding the maximum interest rate).'
As the scope of telephone number cessation is expanded to include illegal debt collection and illegal lending practices, registered lenders may also have their phone numbers blocked if they violate relevant regulations.
Recently, illegal lenders have primarily utilized SNS and messaging platforms during the debt collection process, and if reports of illegal activities via KakaoTalk or Line are received, a system to restrict (cease use of) the application for the relevant user will also be implemented after review.
In case of illegal lending damage, the Financial Supervisory Service urged the public to quickly report through its website and SNS or messaging applications.
The Financial Supervisory Service stated, 'We will monitor illegal lending activities, actively cooperate with relevant agencies in improving systems, and work to prevent illegal lending damages and provide post-remedies.'