This file photo, taken July 18, 2023, shows information about a bank’s loan programs in Seoul. (Image courtesy of Yonhap)
SEOUL, Jan. 4 (Korea Bizwire) — A 30-year-old loan shark who allegedly drove a single mother to suicide through relentless harassment and threats has been indicted and will face trial, South Korean prosecutors announced on January 3, 2025.
The suspect, identified only as A, was charged with violating multiple laws, including the Act on Registration of Credit Business and Protection of Finance Users, Fair Debt Collection Practices Act, and the Act on Regulation of Punishment of Criminal Proceeds Concealment.
This comes roughly four months after a single mother of a kindergarten-aged child took her own life in September 2024 following persistent harassment over unpaid loans.
According to the Seoul Northern District Prosecutors’ Office, A operated an unregistered loan business between July and November 2024, lending 17.6 million won ($13,500) to six individuals at exorbitant interest rates.
The annual interest rates ranged from 2,409% to 5,214%, vastly exceeding the legal cap of 20%.
A allegedly resorted to illegal debt collection practices, including sending threatening messages to the borrowers’ families and acquaintances. Investigators also found that A used bank accounts and phones registered under other names to conceal the illegal activities.
Prosecutors, working with police, identified five additional victims and uncovered a broader pattern of illegal lending and debt collection. They have moved to confiscate A’s assets to recover criminal proceeds.
“We are committed to ensuring the defendant faces appropriate punishment and to recovering illicit gains,” prosecutors stated. “We will continue to respond firmly to illegal loan sharking and related financial crimes.”
The case highlights ongoing concerns about predatory lending practices in South Korea and their devastating impact on vulnerable individuals.
M. H. Lee (mhlee@koreabizwire.com)
