Ulsan Special Judicial Police, Special Crackdown on Illegal Lending During Seol Holiday

Illegal Advertising and High-Interest Private Loans: Criminal Penalties and Business Suspension

Ulsan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ulsan City will conduct a special crackdown on illegal lending for three weeks from the 9th to January 27th in preparation for the Lunar New Year holiday.

This special crackdown is designed to prevent illegal lending damage to economically vulnerable citizens such as self-employed and small business owners, whose demand for business and living funds increases ahead of the Lunar New Year holiday.

The targets of the crackdown are 197 registered businesses (151 lending businesses, 42 loan brokerage businesses, 4 debt collection businesses) and illegal private lenders.

The crackdown contents include △ whether interest exceeding the legal rate (20% per annum) is collected △ unregistered lending activities and advertising using similar trade names △ false or exaggerated advertisements and unfair fee collection from loan users.

Ulsan City plans to take criminal action and administrative measures such as business suspension against violating businesses.

An official from Ulsan City said, “If you are having difficulties using private loans or high-interest loans, we recommend contacting the Ulsan City Civil Affairs Judicial Police Division for legal consultation and free attorney appointment,” and added, “We ask for active reports and tips from citizens to prevent illegal private financing that exploits the difficult economic situation.”

Since introducing dedicated special judicial police officers for lending businesses in 2020, Ulsan City has cracked down on about 30 illegal lenders, including private lenders who collected unfair interest rates of up to 2234% per annum from citizens over about two years, and seven registered businesses violating the maximum interest rate, referring them to the prosecution. In addition, more than 130 phone numbers used in illegal lending advertisements were blocked, achieving significant results.

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