"Illegal Private Loans Beware"... Special Eradication Period Operated Until October

Financial Services Commission and Related Agencies Hold 'Illegal Private Lending Inter-Agency TF' Meeting
Intensive Crackdown Implemented... Monthly Monitoring of Low-Credit Loan Market Conditions

[Asia Economy Reporter Kwangho Lee] In response to the reduction of the maximum interest rate (from 24% to 20%), financial authorities will operate a joint 'Illegal Private Loan Special Eradication Period' with related agencies for four months.

The Financial Services Commission announced on the 30th that it held a meeting of the 'Illegal Private Loan Government-wide Task Force (TF)' with related agencies such as the Korea Communications Commission, the National Police Agency, and the National Tax Service, and declared the period from next month 1st to October 31st as the Illegal Private Loan Special Eradication Period, during which intensive crackdowns will be conducted.

This measure was prepared due to concerns that illegal private loans could spread taking advantage of the reduction in the maximum interest rate.

The Financial Services Commission and related agencies will check the performance of the special eradication period operation and the status of the low-credit loan market such as the lending industry every month, and plan to review whether to extend the period based on the progress of the operation.

A Financial Services Commission official said, "We will regularly check the performance of each agency's special eradication period operation and the status of the low-credit loan market such as the lending industry, and actively support the legislative process of the government amendment bill on the Lending Business Act submitted to the National Assembly in December last year."

Meanwhile, in the second half of last year, the Financial Services Commission and related agencies arrested a total of 4,724 people and detained 49 during the Illegal Private Loan Special Eradication Period. They also detected and blocked 272,000 cases of illegal private loan advertisements both online and offline, and suspended 6,663 cases.

This content was produced with the assistance of AI translation services.