Illegal Loans Hurting Ordinary People, Caught Red-Handed... Ulsan City’s Special Crackdown Ahead of Chuseok

Special Judicial Police from 22nd to September 8th Target False Illegal Advertisements and High-Interest Private Loans

Illegal loan business advertisement flyer.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ahead of Chuseok, a crackdown will be imposed on illegal lending businesses in Ulsan that violate the legal interest rate or mislead through false advertisements.

Ulsan City announced on the 21st that it will conduct a special crackdown on illegal lending from September 22 to September 8, lasting three weeks, in preparation for the Chuseok holiday.

This special crackdown was planned to prevent damage to economically vulnerable citizens such as self-employed and small business owners whose demand for business and living funds increases before the Chuseok holiday.

The targets of the crackdown are 189 registered businesses (149 lending businesses, 35 loan brokerage businesses, 5 debt collection businesses) and illegal private lenders.

The crackdown contents include △whether the legal interest rate (20% per annum) is exceeded △false or exaggerated advertisements and whether loan fees are charged to borrowers △unregistered loan brokerage activities and the use of similar trade name advertisements, etc.

Ulsan City plans to request the district offices to take administrative actions such as criminal prosecution, business suspension or cancellation, and fines against violating businesses.

An official from Ulsan City said, “If you are having difficulties due to illegal private loans, we recommend contacting the Ulsan City Civil Judicial Police Division for legal consultation, appointment of a free lawyer, and other assistance,” and added, “We ask for active reports and tips from citizens.”

In the past two years since introducing special judicial police officers dedicated to lending businesses, Ulsan City has cracked down on 26 illegal lenders, including private lenders who charged an unfair interest rate of 1753.8% per annum to citizens, and five registered businesses violating the maximum interest rate, sending them to the prosecution, and has blocked more than 120 phone numbers used in illegal lending advertisements.

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