The number of illegal online loan advertisements has increased by nearly 50% over the past year. Ads impersonating policy financial products or registered lending companies are particularly spreading on social media platforms like YouTube and Instagram.
The Korea Association of Credit Finance announced on July 21 that it identified 7,855 advertisements from 280 suspected illegal loan companies during a two-month inspection starting in April. This marks an increase of 2,563 cases (48%) compared to the 5,292 ads identified last year.
Of the total, 6,104 ads, or 77.7%, were found on social media platforms such as YouTube, Facebook, and Instagram. Portal advertisements accounted for 1,751 cases. The association explained that social media allows for easy account creation and deletion, making it easier to evade detection through repeated exposure via algorithms.
In terms of advertisement types, 7,090 ads encouraged one-on-one consultations via phone or KakaoTalk, while 624 ads disguised as informational posts or user reviews were also noted. Additionally, 135 ads directed users to closed communities.
Many of the identified ads falsely claimed to represent government-supported financial products such as 'government support,' 'low-income loans,' 'sunshine loans,' and 'smile finance,' or presented misleading company names and registration numbers to mislead consumers into thinking they were legitimate lending companies. This could lead consumers to mistakenly provide personal information or engage with illegal high-interest loans, raising concerns.
The association plans to forward the identified ads and phone numbers to the agency operating the one-stop comprehensive support system for illegal loans, requesting the blocking of the ads and cessation of phone number use.
Jung Sung-woong, president of the Korea Association of Credit Finance, stated, "In addition to cracking down on illegal loan advertisements, it is necessary to activate legitimate lending finance to prevent vulnerable financial groups from being driven into the illegal market."
* This article has been translated by AI.
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