South Korea's CCRS combats illegal private lending and predatory debt collection

The Credit Counseling and Recovery Service (CCRS) is actively addressing a surge in illegal private lending and predatory debt collection practices in South Korea. Victims have reported extreme interest rates, such as one individual facing an annual rate of approximately 1255% after borrowing 900,000 won.

Illegal lenders have been using aggressive tactics, including threatening to distribute victims' personal photos and contacting their families, acquaintances, and former employers via international numbers and social media.

The CCRS has implemented a ‘one-stop comprehensive support’ system. Dedicated specialists assist victims by organizing evidence—such as chat logs and bank transaction records—to facilitate reports to the Financial Supervisory Service and the police. This process includes issuing warnings to creditors to cease illegal collection, which has successfully halted collection efforts in approximately 10% of cases.