Seoul police have arrested 34 individuals for running an illegal loan operation that targeted financially vulnerable young people with exorbitant interest rates exceeding 3,000% annually. The criminal group allegedly used sexual extortion tactics, including threats to distribute nude photos, to collect payments.
On May 13, the Seoul Dongdaemun Police Station revealed that the suspects, led by a man in his 40s, were arrested for violating various laws, including the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act, the Act on Special Cases Concerning the Punishment of Sexual Crimes, and for organizing a criminal syndicate. Six of the 34 suspects have been detained.
The group operated a website advertising small loans to low-credit individuals. They initially lent 300,000 won, then demanded repayment of 500,000 won within a week—a scheme dubbed the “3050 loan.”
Investigations show that from October 2022 to July 2023, the group extorted 1.16 billion won from 179 victims, with the total principal borrowed amounting to just 350 million won. This translates to an annual interest rate exceeding 3,000%.
The group’s tactics were particularly alarming. Victims were coerced into submitting nude photos and contact information for their friends and family as collateral. When borrowers failed to repay on time, the group threatened to distribute altered images, combining the victims’ faces with pornographic content.
The operation, led by the mastermind based in Seoul's Jungrang-gu and Dobong-gu districts, frequently relocated its offices to avoid detection. Loans were processed online to further obscure the group's location and evade authorities. Police have collaborated with the Digital Sexual Crimes Victim Support Center to remove victims' images and support those impacted by the extortion.
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