Online Reporting for Illegal Money Lending Begins November 16

The Credit Recovery Committee will begin accepting online reports of illegal money lending starting November 16, expanding from its previous offline-only system. This change aims to enhance accessibility for victims and expedite relief efforts.

Seo Dong-baek, a team leader at the Credit Recovery Committee, announced this during a seminar titled 'The Role of Media in Preventing Financial Harm and Protecting Victims,' co-hosted by the Korea Journalists Association at the Ocean Suites Hotel in Jeju on November 12.

Since February 23, the committee has been piloting a 'one-stop reporting and support system' for victims of illegal money lending, where a dedicated representative assists with the entire relief process, from halting illegal collections to investigating and debt adjustment. After officially launching in March, the number of dedicated centers expanded from eight to 22 by August.

Seo stated, "Starting December 21, we plan to dispatch two police officers to assist with investigations and support efforts. Since December of last year, we have been closely collaborating with the Financial Supervisory Service and police, yielding visible results, such as illegal lenders terminating debts or returning funds to victims."

During the seminar, it was noted that despite the establishment of reporting guidelines for illegal money lending and excessive debt a year ago, there is still a need to improve reporting practices that focus on victims' personal responsibility or sensational crime methods.

The reporting guidelines, established in October of last year, consist of three principles: prioritizing the protection of victims' rights and interests, balanced reporting on the background and context of the harm, and providing information for prevention and problem-solving.

Ryu Yang-sang, a deputy editor at Maeil Business Newspaper, shared a case of an insurance planner whose income decreased due to COVID-19 and borrowed 5 million won through a referral, only to see the debt balloon to tens of millions due to illegal high-interest rates and late fees.

Ryu emphasized, "When illegal money lending incidents occur, the media often focuses on sensational crime methods like threats and violence. We must also examine why individuals could not obtain loans from legitimate financial institutions and whether they had opportunities to utilize policy financing or debt adjustment systems."