FSC to Announce Additional Measures to Eradicate Illegal Debt Collection by Year-End

On-Site Meeting Held to Address Eradication of Illegal Private Financing and Illegal Debt Collection
One Month Since Implementation of the Amended Lending Business Act
Financial Services Commission to Review Additional Institutional Improvements

As one month has passed since the amended Lending Business Act came into effect, financial authorities have announced plans to prepare additional measures to eradicate illegal lending and illegal debt collection by the end of the year.

The Financial Services Commission stated on the morning of August 22 that it held an on-site meeting titled "Eradication of Illegal Private Financing and Illegal Debt Collection" at the Northern Center of the Gyeonggi Welfare Foundation, where these issues were discussed.

This on-site meeting was organized to review how the amended Lending Business Act has been implemented in the field, particularly in response to illegal private financing, and to examine further institutional improvement tasks.

The amended Lending Business Act includes provisions such as invalidating anti-social lending contracts, strengthening registration requirements for lending businesses, and establishing grounds for suspending the use of phone numbers involved in illegal lending and illegal debt collection. Accordingly, when reports of illegal debt collection are received, social media accounts such as KakaoTalk and LINE are being blocked.

During the meeting, several points were raised: the necessity of immediate initial measures to halt illegal debt collection; strengthening cooperation systems among relevant agencies in responding to illegal private financing and illegal debt collection; reinforcing supervision related to debt collection; intensifying investigations and crackdowns; and the need to enhance public awareness campaigns against illegal private financing and illegal debt collection.

Regarding initial measures, the Financial Services Commission explained that, upon receiving reports from the Financial Supervisory Service, Korea Inclusive Finance Agency, or local governments, it is suspending the use of phone numbers involved in illegal lending and illegal debt collection as quickly as possible. So far, a total of 478 phone numbers have been suspended.

In addition, the authorities plan to strengthen further responses to ensure that illegal debt collection is immediately halted during processes such as the appointment of debtor representatives.

Furthermore, with regard to new types of criminal methods and information, the authorities will share and devise response measures rapidly among relevant ministries and agencies through the Illegal Private Financing Task Force (led by the Office for Government Policy Coordination). This is based on the judgment that there are limits to the financial sector's response alone, and that close cooperation among financial, telecommunications, and investigative agencies is essential.

The Financial Services Commission stated, "We will thoroughly review the suggestions and policy tasks raised at today's on-site meeting and prepare measures to eradicate illegal private financing and illegal debt collection within the year, so that policies can be established that the public can truly feel."

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