The Financial Supervisory Service said on the 2nd it will operate the "burner phone zero" (AWCS) system to block burner phones used for illegal private lending.
Under the lending business act revised in July last year, illegal lending and debt collection are subject to suspension of phone number usage under current law. But it takes about seven days from a burner phone report to blocking outgoing calls. In response, the Financial Supervisory Service (FSS) plans to shorten the time to three days.
When a debtor applies on the Financial Supervisory Service (FSS) website to suspend the use of a phone number used for illegal private lending, the authorities review the requirements and activate burner phone zero. At this time, the Financial Supervisory Service (FSS) reviews based on materials the debtor submitted, such as charging interest above the legal rate (annual interest rate 20%) or details of illegal collection damage.
Burner phone zero calls at 2–3 second intervals, neutralizing attempts to make calls for illegal collection. Before activating burner phone zero, a text message notifies the party that outgoing calls will be blocked and that a request will be made to suspend the phone number's use, and guides them to file an objection if they are not subject to suspension.
Afterward, the Financial Supervisory Service (FSS), following a review by the Ministry of Science and ICT, suspends the use of the phone number.
The Financial Supervisory Service (FSS) said, "Using the burner phone zero system will make it possible to stop outgoing calls within three days," adding, "Illegal activities using burner phones will be rooted out, and victims' psychological pressure could be greatly eased."