Private Loan Finance Association and Credit Recovery Committee Sign MOU to Strengthen Support for Victims of Illegal Private Lending

Jeong Sungung, Chairman of the Association: "Private Lending, the Last Bastion of Finance for Ordinary People"

The Korea Private Loan Finance Association and the Credit Recovery Committee announced on April 13 that they had signed a memorandum of understanding to strengthen support for victims of illegal private lending.

Attendees at the agreement ceremony on relief and support for victims of illegal private loans, held on the 13th by the Korea Asset Management Association and the Credit Recovery Committee, are taking a commemorative photo. From the third person from the left: Seong-woong Jung, Chairman of the Korea Asset Management Association, and Eun-kyung Kim, Chairperson of the Credit Recovery Committee. Korea Asset Management Association

The two organizations entered into the agreement to provide more thorough and effective support for victims of illegal private lending.

Since 2009, the Association has analyzed 49,375 cases of illegal private lending transactions, carrying out relief and restitution activities amounting to over 7.2 billion won (2,956 cases). In particular, it has accumulated expertise through activities such as calculating the amount of damages and facilitating the return of excessive interest payments.

Since last month, the Credit Recovery Committee has launched a one-stop support system for victims of illegal private lending. This system supports the entire recovery process, including dedicated counseling and connections with related organizations such as the Financial Supervisory Service, the National Police Agency, and the Korea Legal Aid Corporation. Through this agreement, the Association has also been added as a partner organization of the Credit Recovery Committee.

The Association plans to actively provide support in cases requiring specialized analysis, such as calculating the amount of damage. Victims who require one-stop support will be referred to the Credit Recovery Committee.

In addition, the Association plans to continuously expand areas of cooperation with the Credit Recovery Committee by: ▲ linking debt adjustment, employment, and welfare services ▲ supporting litigation related to damage cases ▲ and sharing trends on illegal private lending practices and victim cases.

Jeong Sungung, Chairman of the Association, stated, "Our private loan finance sector has fulfilled its essential role as the last bastion providing necessary living funds to low-credit individuals, much like traditional markets have done within the financial sector."

He added, "By combining the Association's analytical expertise with the Credit Recovery Committee's support system, we expect to offer more precise and practical support to victims."

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