Special Inspection on 'Illegal Video Loan Advertisements' in September... "Strict Action Upon Detection"
Financial Authorities, Police, Seoul City, and Gyeonggi Province Jointly Conduct Campaign
Preventing Damage to Low-Income Groups from Illegal Video Loan Advertisements
[Asia Economy Reporter Sim Nayoung] Financial authorities, the police, Seoul City, and Gyeonggi Province announced that they will jointly operate a 'Special Inspection Period for Illegal Video Loan Advertisements' for four weeks from the 5th to the 30th of this month to prevent damage to the lower-income class caused by illegal video loan advertisements.
The financial authorities stated, "This inspection was discussed by the Government-wide Task Force for Eradicating Illegal Private Finance, led by the Office for Government Policy Coordination, and any violations detected during the special inspection period will be strictly dealt with under the zero-tolerance principle."
According to the current Loan Business Act, registered loan businesses must not use expressions that impersonate financial institutions or may be mistaken for supplying policy-based low-income financial products when advertising. They must clearly disclose the company name, registration number, loan interest rate, and other loan conditions, and provide warnings about the risks of excessive debt and other precautions at the time of contract. Illegal private finance businesses, i.e., unregistered loan businesses, are prohibited from advertising loan services.
In case of violations, registered loan businesses may be subject to administrative sanctions such as business suspension, and unregistered loan businesses may face criminal penalties.
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Online video advertisement review will also be strengthened. From October 1, the revised 'Loan Finance Advertisement Review Regulations' will be enforced, allowing the Loan Association to pre-review online video advertisements of member loan businesses. Currently, the Loan Association conducts pre-reviews for advertisements in major daily newspapers, video advertisements through theaters, terrestrial, and cable broadcasting, and once this regulation is enforced, pre-reviews will also cover video advertisements through online media platforms such as social media services.
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