The Korea Private Lenders Finance Association said on the 3rd that it plans to actively pursue civil and criminal actions against organizations and materials that refer to illegal private financiers as "illegal lenders," damaging the industry's image.
The association said that the misuse of the term "illegal lenders" causes the entire lending industry to be regarded as a criminal group and leads financial consumers to choose illegal businesses, creating side effects that spread illegal private financing.
The lending business act, revised last year, defines those who engage in lending without registering with the government as "illegal private financiers." However, despite the legal revision, some public institutions, including police stations and local governments, are using the incorrect term "illegal lending," raising concerns about consumer confusion and the spread of illegal private financing, the association said.
In response, the association plans to prepare measures to prevent recurrence and respond strongly to correct the misuse of the term "illegal lending." While continuing to send official cooperation requests to relevant agencies (such as police stations and local governments) as it does now, the association also plans to actively pursue legal action, including civil and criminal suits, against organizations or materials that repeatedly use the wrong term, to protect financial consumers and restore trust in the lending industry.
Jung Sung-ung, head of the Private Lenders Association, said, "Since incorrect terms can distort financial consumers' choices, establishing correct terminology is essential to eradicate damage from illegal private financing," adding, "We should also hurry to change the name so that it is easy to see that the lending industry is a financial company that can be used safely."