Seoul Metropolitan Government has announced comprehensive measures to combat predatory lending practices, particularly those targeting vulnerable populations. (Image courtesy of Yonhap)
SEOUL, Nov. 4 (Korea Bizwire) – In response to the recent suicide of a sex worker driven to despair by illegal loan sharks, Seoul Metropolitan Government has announced comprehensive measures to combat predatory lending practices, particularly those targeting vulnerable populations.
The city’s initiative, announced on November 3, comes after the tragic death of a single mother who worked in Seoul’s Miari Texas red-light district.
The victim, discovered in September at a pension in a provincial area, had borrowed a small sum from illegal lenders that snowballed into an insurmountable debt.
The loan sharks ultimately resorted to harassment, sending messages exposing her work to acquaintances and even her young daughter’s kindergarten teacher.
“We’re seeing an increasing number of cases where vulnerable individuals, particularly sex workers, are targeted with exorbitant interest rates and then threatened when they cannot repay,” a city official stated. “We’re implementing measures specifically designed to protect sex workers, who are especially susceptible to illegal private lending.”
The city’s new measures include conducting a comprehensive survey of illegal debt collection practices in Seoul’s remaining red-light districts – Miari Texas in Hawolgok-dong and the area near Yeongdeungpo Station – where approximately 420 sex workers were estimated to operate as of September.
The initiative includes both technological and practical solutions. The city plans to develop an AI-based system to filter advertisements for sex work and illegal lending, install speakers in red-light districts broadcasting information about reporting illegal debt collection, and establish anonymous counseling channels through KakaoTalk.
Legal support will be expanded to include not just debtors but also their families and acquaintances. The city will also implement a “burner phone killer system” that automatically blocks illegal lenders’ phone numbers by flooding them with calls every three seconds.
Seoul currently operates 20 facilities and counseling centers for sex trafficking victims. Through September, these facilities have provided 9,706 counseling sessions and 7,555 cases of medical, legal, and vocational training support. The city’s outreach programs have offered an additional 2,426 counseling sessions and 2,578 instances of various support services.
However, city officials acknowledge the limitations of local government efforts alone. “While we face challenges in preventing illegal lending practices targeting sex workers through municipal efforts alone, we will continue to work with relevant agencies to prevent harm within our jurisdiction,” a city representative stated.
The city is also operating self-support centers and communal workspaces to help women transition out of sex work. As of September, the city’s support infrastructure has provided comprehensive assistance including medical care, legal aid, and vocational training to thousands of individuals.
Despite these efforts, experts argue that more comprehensive action at the national level is necessary to effectively address the issue of predatory lending targeting vulnerable populations.
M. H. Lee (mhlee@koreabizwire.com)
Seoul is taking action to protect vulnerable groups from predatory lending