Gwangju police arrest illegal moneylenders for usury

The Gwangju Metropolitan Police Agency has arrested 20 individuals, including six illegal moneylenders and 14 account holders, for operating unregistered lending businesses and engaging in illegal debt collection. Two primary suspects have been detained.

Investigations revealed that the suspects charged exorbitant interest rates ranging from 66% to as high as 578.2% per annum, far exceeding the legal limit of 20%. One suspect allegedly lent 38 million won to eight people, collecting 42.41 million won in interest, while another lent 47.03 million won to 11 people, collecting 60.05 million won in interest.

The police launched the investigation following the death of a woman in her 50s, who left a suicide note detailing the distress caused by illegal collection tactics. The suspects reportedly violated regulations by sending repeated debt repayment demands to the victims' family members via mobile text messages. Police stated they will continue to track down malicious illegal lenders and are providing emergency livelihood support to the victims' families.