A "one-stop relief system" will be created so that victims of illegal private lending can receive investigation, collection suspension, debt adjustment, and policy finance support with a single report.
On the 6th, the government held a meeting of the "pan-government task force (TF) to eradicate illegal private lending," chaired by Minister of the Office for Government Policy Coordination Yoon Chang-ryeol, and announced the "2026 plan to eradicate illegal private lending." The meeting was attended by relevant ministries and local governments, including the Financial Services Commission, the Korean National Police Agency, the Financial Supervisory Service, the Ministry of Justice, and the National Tax Service.
As a result of operating a pan-government joint response system since the launch of the Lee Jae-myung administration, the number of arrests for illegal private lending increased from 1,977 cases in 2024 to 3,365 in 2025. The amount of criminal proceeds recovered also rose from 18.7 billion won to 30.9 billion won. This was the effect of establishing dedicated investigation teams at 261 police stations nationwide.
However, the number of reports received by the Financial Supervisory Service's illegal private lending victim reporting center increased from 10,350 in 2022 to 16,988 in 2025. This is because victim protection and relief measures are scattered across agencies, making a swift response difficult. Victim reports go to the Financial Supervisory Service, criminal complaints to the police, lawsuits to the Korea Legal Aid Corporation, and debt adjustment to the Korea Inclusive Finance Agency branches, making it hard for victims to respond to all procedures in a timely manner.
Accordingly, the government decided to establish a one-stop, comprehensive, dedicated support system. Going forward, victims can receive support such as assignment of dedicated staff at the Credit Counseling & Recovery Service (CCRS), victim counseling, and assistance with drafting reports at 50 Korea Inclusive Finance Agency branches nationwide. Once the Financial Supervisory Service receives a victim's report, it will automatically connect, without additional applications, to requests for police investigation, appointment of a debtor's representative, advance warnings to stop illegal collection, and phone number blocking requests.
The government also lowered the illegal private lending prevention lending rate to 12.5% per year from 15.9%. By introducing a "payback of interest upon full repayment (50% of total interest)," the effective interest burden is expected to be 6.3% per year. The supply of prevention loans will also be expanded from 132.6 billion won to 200 billion won. The lending rates for special guarantees for lowest-credit borrowers and for Sunshine Loan special guarantees will also be reduced to 12.5% per year from 15.9%.
Recovery of criminal proceeds will also be strengthened. For accounts related to illegal private lending, the banking sector will conduct enhanced customer due diligence, and if the beneficial owner is not verified, the transaction will be suspended immediately. The government will also push to amend the Act on the Confiscation of Proceeds of Corruption so the state can confiscate illegal private lending proceeds and return them directly to victims.