Illegal debt collection cases expected to surpass 3,000

A Busan resident surnamed Park, who lost their job due to illness, faced further hardship when their mother was diagnosed with cancer. In 2019, Park borrowed 25.5 million won from a longtime friend, surnamed Kim. What began as a desperate financial decision soon turned into a nightmare. Kim sent daily threatening messages demanding repayment, while piling on interest far beyond legal limits. By early this year, Park’s debt had swollen to more than 80 million won.

“I’ve already repaid more than 82 million won,” Park said. “Being hounded by someone I trusted made me feel like I wanted to die.”

Cases like Park’s are becoming alarmingly common. According to the Financial Supervisory Service’s Illegal Private Lending Report Center, reports of illegal debt collection jumped from 580 in 2020 to 2,947 in 2023. This represents a more than fivefold increase. As of May this year, 1,485 cases have already been reported, putting the total for 2024 on track to exceed 3,000 for the first time.

Following the widely publicized 2022 tragedy in Suwon, where a mother and two daughters died by suicide after being harassed by illegal lenders, the government launched a nationwide task force to crack down on private loan sharks. Still, the problem persists.

“Even when victims file complaints, investigations are often slow,” said Song Tae-kyung, secretary general of People’s Solidarity, a civic group that supports victims of illegal lending. “Illegal collection tactics are now spreading to platforms such as Telegram and LINE.”


이채완기자 chaewani@donga.com