South Korean law firms accused of predatory debt relief advertising

Some law firms in South Korea are reportedly targeting vulnerable debtors through exaggerated advertisements on platforms like YouTube and Instagram. These firms often claim they can forgive up to 95% of debt, a figure legal experts describe as highly misleading and rare in actual personal rehabilitation cases.

Victims report being pressured into signing contracts immediately during consultations, with legal fees reaching 6 to 7 million won—significantly higher than the standard 2 to 3 million won range. Some firms use deceptive tactics, such as charging low initial fees only to demand additional payments during subsequent stages. In extreme cases, these firms have allegedly encouraged debtors to exhaust credit card limits or even introduced them to private moneylenders to cover legal costs, potentially worsening their financial instability.

The Credit Recovery Committee advises individuals to consult public debt adjustment institutions first, noting that many services, such as rapid debt adjustment, are available for a minimal fee of 50,000 won and do not require expensive legal representation.