The government plans to introduce a reward system for individuals who report illegal online lending advertisements. It is also considering the use of undercover operations in investigations of illegal lending activities.
On October 2, the Office for Government Policy Coordination, the Financial Services Commission, and the Financial Supervisory Service held a meeting led by Kim Gi-geun, head of the Office for Government Policy Coordination, to announce these proposed improvements.
The government will first strengthen pre-screening of online lending advertisements. Currently, the Lending Association conducts pre-screening for newspaper and video advertisements, but this will now extend to online ads.
Advertisements will be evaluated based on the lending company's performance over the past six months and any history of administrative sanctions. Advertising platforms must verify whether the ads have undergone pre-screening by the Lending Association before publication. Failure to comply will result in fines.
A so-called 'paparazzi' system will be introduced to reward individuals who report illegal online lending advertisements. Reports of ads that have not undergone pre-screening or violate the law will earn 5,000 won per report, while reports linked to illegal lending operations will earn 500,000 won.
Investigations into illegal lending will also be intensified. The government is considering applying the undercover investigation methods used in digital sex crime and drug crime cases to illegal lending offenses.
The Credit Recovery Commission will dispatch police officers to its one-stop support service for illegal lending victims. This is to ensure that if an investigation is deemed necessary during victim consultations, it can be quickly initiated.
The government plans to amend the Lending Business Act, its enforcement decree, and the Lending Association's advertising review regulations in the fourth quarter of this year to implement these related systems.
Kim Gi-geun stated, "The measures to eradicate illegal lending are not merely about normalizing financial transactions but are urgent measures for people's livelihoods. We will ensure that these measures are implemented without delay through active collaboration among relevant agencies."
* This article has been translated by AI.
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