"Borrow 200,000 won and repay 1,280,000 won after a week"... Even 'Naked Debt Collection' Not Hesitated

Simultaneous Nationwide Tax Investigation Launched on 108 Illegal Private Lenders

The National Tax Service (NTS) is launching a nationwide simultaneous tax investigation targeting 108 illegal private moneylenders. Recognizing the severe social harm caused by illegal private financing?such as exploiting vulnerable groups with exorbitant interest rates reaching thousands of percent, and engaging in antisocial debt collection practices including threats and violence?the NTS has decided to mobilize all available means, including tax audits, asset tracing, and delinquent tax collection.

On the 30th, the NTS announced that, through information cooperation with related agencies such as the Financial Supervisory Service and the National Police Agency, as well as its own data analysis, it swiftly selected investigation targets and commenced a nationwide simultaneous investigation of a total of 163 individuals.

At the 'Illegal Private Financing Livelihood Field Meeting' chaired by President Yoon Seok-yeol on the 9th, related ministries agreed to cooperate mutually and respond strongly to eradicate illegal private financing. Accordingly, the NTS established a dedicated task force (TF) led by the deputy commissioner on the 13th to expedite the implementation of this government-wide initiative.

The current tax investigation targets include 89 private lenders, 11 intermediaries, and 8 debt collectors, totaling 108 individuals. For 31 individuals who used illegal loan profits for family asset acquisition and extravagant lifestyles without paying proper taxes, source-of-funds investigations will be conducted. Additionally, immediate asset tracing investigations have begun for 24 individuals who concealed assets and accumulated large tax delinquencies despite having been assessed taxes for illegal activities and tax evasion confirmed during previous lending business tax audits.

According to the NTS, Mr. A formed an organization by gathering local seniors and juniors in their 20s and 30s and operated an illegal private loan organization in both non-face-to-face and branch office formats. They registered multiple fictitious company names on internet loan brokerage platforms, falsely advertising as legitimate companies to recruit debtors. Targeting job seekers and housewives who found it difficult to obtain institutional loans, they provided relatively easy-to-collect small and short-term loans, charging ultra-high interest rates ranging from 2,000% to 28,157%. For example, lending 200,000 KRW and demanding repayment of 1,280,000 KRW after 7 days, or lending 150,000 KRW and requiring 610,000 KRW repayment after 12 days. Particularly, after the repayment deadline passed, they pressured debtors with verbal abuse and threats, and shamelessly used methods such as 'naked debt collection,' threatening to distribute flyers with photoshopped images of debtors’ faces combined with nudity to their families and acquaintances.

There was also Mr. B, an illegal private lender active as a local influential figure, who extorted ultra-high interest rates and resorted to violence and threats after repayment deadlines. Mr. B mainly targeted socially vulnerable groups such as entertainment industry workers, quick delivery drivers, and small business owners, providing small and short-term loans and charging illegal interest rates between 52% and 1,300%. Mr. B laundered and concealed income earned from illegal lending by establishing a transportation company without actual business operations and issuing false tax invoices to a business run by an acquaintance, either inflating sales or fabricating expenses.

An NTS official stated, "For organized illegal private lenders where there are concerns about the safety of investigators, we have commenced investigations with active support from the National Police Agency, including police escorts." He added, "During this special eradication period, we will relentlessly trace every single won of illicit income from illegal private financiers and recover it through taxation."

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