The government is launching a full-scale "one-stop comprehensive dedicated support system" that consolidates previously fragmented reporting and relief procedures to help victims of illegal private lending. Going forward, victims will no longer have to shuttle between multiple agencies and repeat the same explanations; with help from a dedicated caseworker, they will be able to resolve everything at once, from blocking collections to litigation support.
The Financial Services Commission held an on-site roundtable at the Press Center in Jung District, Seoul, on the 9th and announced the official launch of the "one-stop comprehensive dedicated support system for illegal private lending." Until now, victims of illegal private lending had to visit each agency one by one, including the Financial Supervisory Service, police, and Korea Legal Aid Corporation. In the process, they had to repeatedly explain the damage and directly prepare complex supporting documents, often giving up on relief out of exhaustion. In particular, it has long been pointed out as a chronic problem that abusive collection continued even while victims were going through the reporting procedures, leaving them mentally and physically drained.
To address this, the government has assigned 17 dedicated caseworkers under the Credit Counseling & Recovery Service (CCRS) to eight regional People's Finance Integrated Support Centers nationwide. Regardless of how victims come in, these caseworkers will provide close assistance throughout the entire process, including support for filing reports, immediate warnings to illegal operators to stop collections, free appointment of debtor representatives and litigation support, and linkage to debt adjustment, employment, and welfare services.
Flexible operations that reflect on-the-ground feedback also stand out. The Financial Services Commission (FSC), noting that it takes a long time to perfectly assemble all supporting documents when reporting multiple illegal operators, has issued guidance allowing step-by-step actions first according to the damage situation, such as issuing warnings to stop illegal collections or blocking phone numbers and accounts. The aim is to prevent damage from growing while waiting for supplemental documents.
Administrative convenience will also improve significantly. The Financial Services Commission (FSC) plans to link the IT systems of the Financial Supervisory Service (FSS), the Credit Counseling & Recovery Service (CCRS), and the Korea Legal Aid Corporation by the third quarter so that report data on damage can be shared in real time. Based on operating results, it will also expand the number of dedicated personnel and centers with permanent placement beyond the current eight, and diversify counseling channels by working with local government welfare foundations.
Lee Eog-weon, chair of the Financial Services Commission, said at the roundtable, "There is a strong legal mechanism that voids all principal and interest for antisocial lending contracts with an annual interest rate exceeding 60%," adding, "For such systems to function properly in the field, a comprehensive support system that helps from the victim's point of view is essential."
In fact, during the pilot operation conducted from the 23rd of last month to the 6th of this month, some victims who used the system saw the illegal operators' collections stop immediately. It is also known that some operators, once their illegality was exposed, first inquired about returning the principal and interest.
Going forward, the government plans to continue consultations with relevant ministries, including the Ministry of Justice and the Prime Minister's Office, to expand the scope of work for special judicial police dedicated to illegal lending. An official at the Financial Services Commission (FSC) said, "We will do our best so that even one more victim can restore daily life more quickly, by establishing a hotline and sharing a common manual among related agencies."