Go to contents

Prosecutors Getting Tougher on Illegal Lending

Posted November. 04, 2008 09:27,   


Prosecutors yesterday strengthened their crackdown on loan sharks and illegal lending.

The Supreme Prosecutors Office is said to be collecting information on business and criminal data of registered loan lenders who advertise through media. Rigid enforcement of laws on private lending has been ordered to provincial prosecutors since the initial request for an investigation and regular crackdowns in late September, a source said.

Under this order, district prosecutors nationwide held a series of meetings to tackle illegal private lending.

The Seoul Central District Prosecutors Office led by an investigation team on organized crime rings dealing in narcotics is tracking down crimes committed in the collection of loans.

One alleged hit man faces prosecution on the charge of collecting illegal loans.

Prosecutors in Daegu and Suwon also held meetings with police and the Financial Supervisory Service at the end of last month on illegal financial activities and violent crime stemming from loan collection.

The subjects of investigation include violence or violent threats in the process of collecting loans, violation of the legal interest rate limit, the nationality of banks making loans, and other crimes.