South Korean moneylender sentenced for predatory lending and illegal collection

A South Korean court has sentenced a moneylender, identified as Kim, to 3 years and 6 months in prison for operating an unregistered lending business and engaging in illegal debt collection. The appellate court at the Seoul Northern District Court reduced the original 4-year sentence from the first trial.

Between July and November 2024, Kim charged interest rates ranging from 1,233% to as high as 6,083% per annum. The defendant also utilized abusive language and threatening messages directed at debtors, as well as their families and acquaintances, to induce fear and shame. These predatory practices led to the death of a single mother in her 30s, who left a suicide note in September 2024 while struggling to care for her young daughter.

The court noted that while the defendant's methods were egregious and caused extreme mental and financial suffering, the sentence was adjusted due to additional settlements reached with victims during the appeal process. The court also found Kim guilty of violating the Act on Regulation and Punishment of Concealment of Criminal Proceeds, ordering the seizure of approximately 7.7 million won in criminal profits.