With illegal private lending crimes rampant, police have rolled out measures, including deploying dedicated investigators.
The Korean National Police Agency National Office of Investigation (NOI) said on the 22nd it has prepared a "comprehensive plan to eradicate illegal private lending crimes," centered on severing criminal links, systemized investigations, and tailored preventive outreach.
The number of illegal private lending crime cases jumped more than fourfold in four years, from 1,362 in 2021 to 5,519 last year. Police carried out a special crackdown on illegal private lending starting in Nov. last year and, through June this year, arrested 2,060 people (76 detained).
However, with illegal private lending crimes such as the so-called "gift card loans" continuing, police decided to take additional action. First, at 105 police agencies nationwide where 20 or more illegal private lending cases occur annually, at least one dedicated investigator will be assigned to handle not only investigations but also victim counseling and the deletion and blocking of criminal tools.
Authority to request suspension of phone numbers used for illegal debt collection will be expanded to heads of police agencies nationwide. Previously, only the commissioner general of the Korean National Police Agency could request suspension, but the authority will be broadened to enable faster blocking.
Police will also push to amend the lending business act to allow "undercover investigations" in illegal private lending cases, and will strengthen joint crackdowns with related agencies, including the Financial Supervisory Service and special judicial police at local governments. A system to quickly freeze transactions in accounts used for illegal private lending crimes will also be prepared in consultation with the financial authorities.
Police will seek pre-indictment confiscation and collection preservation in all violations of the lending business act. Starting in Nov., they plan to treat even interest received in excess of the statutory rate as criminal revenue and recover it.
Hong Seok-gi, head of the National Office of Investigation (NOI), said, "Illegal private lending crimes are exploitative financial crimes that mortgage not only the everyday economic life of ordinary people but also their future," adding, "We will track these crimes to the end so that no one gains any benefit of any kind through illegal private lending."