Incheon police arrest illegal lending ring charging up to 41,000% interest

Incheon police have dismantled two illegal private lending organizations that charged exorbitant interest rates ranging from 32% to over 41,000% annually. The investigation led to the arrest of 22 individuals, including two ringleaders who have been detained.

Between November 2024 and February 2025, the groups targeted 613 borrowers through loan brokerage platforms. By using burner phones, fraudulent accounts, and VPNs to evade detection, the organizations facilitated 2,139 loans totaling approximately 870 million won in illicit profits.

The criminal groups employed aggressive and abusive debt collection tactics, including threatening the families of female debtors with sexual violence and demanding that acquaintances pay off debts. Some members reportedly mocked victims who attempted to report them to the police.

Authorities have frozen approximately 463 million won in financial assets and real estate as part of the criminal proceeds seizure. The police are working with the Credit Recovery Committee to provide debt adjustment services to victims, including one woman who attempted suicide due to the harassment.