A loan shark who drove a single mother in her 30s to death with an annual interest rate exceeding 6,000% and illegal debt collection had the sentence reduced to three years and six months in prison on appeal.
The Seoul Northern District Court Criminal Appeals Division 3 (Presiding Judge Heo Myeong-san) on the 14th overturned the lower court and sentenced a person surnamed Kim (33), who was indicted on charges including violating the Act on Registration of Lending Business and the Act on the Protection of Private Credit Information and Debt Collection Practices, to three years and six months in prison. The court also ordered the forfeiture of 7,700,776 won in criminal proceeds.
From July to November 2024, Kim is accused of lending a total of 17.6 million won to six people without registering a lending business and collecting high interest at annual rates ranging from 1,233% to 6,083%. Kim is also accused of illegal collection, including sending personally attacking slurs and threatening messages to the debtors' families and acquaintances.
Kim was found to have used bank accounts and mobile phones under other people's names in the course of operating the lending business.
Among the victims, a single mother in her 30s who was raising her kindergarten-age daughter alone left a note and died in September 2024 after being hounded by Kim's illegal collection. It was also confirmed that Kim sent insulting messages to the victim's family and acquaintances and made threatening calls to the kindergarten her daughter attended.
The court said, "By taking excessive interest from people in need of quick cash, significant property and psychological pain was inflicted," and noted, "This illegal debt collection, which instilled fear and shame not only in the debtors but also in their families and acquaintances, is of grave culpability."
However, the appellate court considered as a reason for mitigation that Kim reached additional settlements with four victims and that some of them expressed they did not want punishment. The court also took into account that Kim acknowledged part of the crimes and showed remorse.
Earlier, the court of first instance sentenced Kim to four years in prison and ordered the forfeiture of 7,171,149 won. Kim and prosecutors both appealed, citing reasons including misapprehension of facts, misinterpretation of law, and unfair sentencing.
On appeal, the court, following the prosecution's amendment of the indictment, found part of the charge of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment to be guilty. However, it found some charges not guilty due to lack of evidence, among other reasons.