The Korean National Police Agency National Office of Investigation (NOI) said on the 2nd it detected 3,251 cases and apprehended 4,004 people in a special crackdown on illegal private lending from Nov. last year to Oct. this year. Compared with the same period a year earlier, the number of arrests rose 71% and the number of people apprehended rose 20%.
Seoul Dongdaemun Police Station apprehended 34 members of a ring that demanded interest reaching an annual rate in the 3,000% range and extorted about 1.16 billion won from 179 victims. Six of them were arrested. The legal maximum interest rate is 20% per year. They also threatened to distribute nude photos received as collateral if the victims did not repay the money they borrowed.
Police said they will continue the special crackdown from the 3rd through Oct. 31 next year. Targets include unregistered operations, loan sharking, illegal debt collection, and the distribution of burner phones and burner bank accounts. They plan to thoroughly trace criminal proceeds and seek confiscation preservation before indictment.
They also plan to establish a dedicated investigative system to respond in full force to illegal private lending, centered on investigative divisions at city and provincial Korean National Police Agency offices and intelligence teams at frontline police stations. They will actively pursue performance rewards, such as special promotions, for investigators with outstanding arrest results.
NOI Commissioner Park Sung-ju said, "Arrests for illegal private lending have increased, but as criminal methods shift to contactless and online, damage is growing," adding, "We will maintain a constant enforcement system until it is completely eradicated."