Illegal Loan Sharking with 1500% Annual Interest Rate... Gang Involved in Threatening Behavior

Seoul Police Agency Arrests Four on Charges Including Joint Detention and Threats

A group engaged in illegal lending with an exorbitant interest rate of 1500% targeting financially struggling individuals has been arrested by the police.

The Seoul Metropolitan Police Agency's Violent Crime Investigation Unit announced on the 13th that four people, including Mr. A, were detained on charges of unlawful confinement and threats.

Seoul Metropolitan Police Agency file photo / Photo by Moon Honam munonam@

According to the police, the suspects lent money to acquaintances in difficult financial situations at an annual interest rate of about 1500%, then repeatedly extorted and threatened the victims and their families. Some of them are also accused of causing a disturbance while intoxicated in an emergency room of a hospital in Seoul after self-harming in March this year.

The police recently received intelligence that so-called ‘MZ gangs’ in the southwestern area of Seoul were engaging in illegal lending and unlawful debt collection targeting ordinary citizens, and launched an investigation.

During the investigation, it was confirmed that one victim, who operated a Hold'em pub, suffered from illegal lending at an annual interest rate of 1500% by the suspects.

The victim borrowed between 3 million and 5 million won from 2021 until April this year as the management of the Hold'em pub became difficult due to COVID-19, repaying the loans within a week including 30% interest.

Mr. A and his group repeatedly threatened the victim by saying things like, “I will find your girlfriend and sell her to an island,” and “I will send my junior to cut your Achilles tendon” if the victim failed to repay on time. They also illegally visited the victim’s parents multiple times to inquire about the victim’s whereabouts. The victim experienced extreme fear, attempted suicide in April, and ended up receiving psychiatric treatment.

After learning about the police investigation, Mr. A and others went into hiding.

A police official stated, “In this difficult economic situation caused by high inflation and rising interest rates, we will eradicate various violent and financial crimes targeting ordinary citizens and essential social facilities such as hospitals, and will respond strictly to all crimes linked to gangs. We promise protection measures for victims who hesitate to report due to fear of retaliation,” urging active reporting.

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