Gyeonggi Special Judicial Police Conduct 'High-Intensity Investigations' on Illegal Private Loans Year-Round

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will conduct year-round intensive investigations into illegal private loans.

The Gyeonggi Province Special Judicial Police for Fairness announced on the 10th that this year it plans to carry out intensive investigations into illegal private loans, including cracking down on new methods such as illegal 'proxy deposits.'

Accordingly, the special judicial police will conduct investigations throughout the year on illegal private loans both online and offline, focusing quarterly on ▲illegal high-interest lending targeting small self-employed business owners and small merchants (1st quarter) ▲unregistered lending targeting university students and job seekers (2nd quarter) ▲new methods such as illegal proxy deposits (3rd quarter) ▲receiving brokerage fees as commissions for mediating unregistered lending companies using online platforms (4th quarter).

In particular, the investigation will strengthen its focus not only on illegal high-interest loans targeting small self-employed business owners and small merchants suffering economic difficulties due to the prolonged COVID-19 pandemic but also on unregistered lending activities using social networking services (SNS) targeting university students and job seekers, as well as new illegal methods such as proxy deposits.

Proxy deposits refer to the act of lending money to youths through social networking services to purchase idol-related goods or game items and charging a service fee (interest). The special judicial police conducted a focused investigation last year and apprehended 14 individuals.

In addition, to prevent damage, the province will simultaneously operate measures such as monitoring internet loan brokerage sites and communities using monitoring personnel, deploying dedicated collection teams in areas where illegal loan flyers are frequently distributed, operating mobile illegal private loan damage counseling centers, and running the 'Illegal Private Loan Damage Report Center' (gfrc.gg.go.kr), which supports residents with investigation, damage relief, and recovery through a single report.

Kim Young-su, head of the Gyeonggi Province Special Judicial Police for Fairness, stated, "Following last year, as COVID-19 continues, illegal private loans targeting economically vulnerable people pushed to the brink are expected to increase. Throughout this year, we will devote all our efforts to eradicating illegal private loans, including new methods such as illegal proxy deposits, to protect socially vulnerable groups and work harder to create a fair society."

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