Annual 4000% Interest and Nude Photo Blackmail... Illegal Loan Shark Gang Arrested

An illegal loan shark organization that collected hundreds of millions of won in interest at an annual interest rate of 4000% and even took nude photos to threaten borrowers for debt collection was caught by the police.

The Busan Metropolitan Police Agency's Violent Crime Investigation Unit announced on the 17th that they arrested the ringleader Mr. A on charges of "Violation of the Act on Registration of Loan Business and Protection of Finance Users," "Violation of the Special Act on the Punishment of Sexual Crimes," and other charges, while 14 other members including Mr. B were booked without detention.

According to the police, from the end of 2021 to April of this year, they lent approximately 1.07 billion won to 492 people and earned an unfair profit of 508 million won by charging an exorbitant interest rate exceeding 4000% annually.

Bank accounts and cards used in the crime. [Image source=Busan Police Agency]

Mr. A, who has a prior record of similar crimes, formed the loan organization with acquaintances and divided roles such as bookkeeper, team leader, manager, and subordinate members.

They lent small amounts of tens of thousands of won to victims who contacted them after seeing internet advertisements, applying an interest rate exceeding 4000% annually.

Moreover, if the debtor failed to repay the money, they pressured repayment through verbal abuse and threats, and even took nude photos to inform the debtor’s acquaintances, including victims or their families, about the debt.

The number of people who borrowed money from Mr. A and his group reached 492, and the number of victims subjected to illegal debt collection reached 148.

A police official stated, "Victims should not be afraid and actively report to the nearest police station, as this is the only way to minimize damage."

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