With Chuseok (Korean Thanksgiving Day) just around the corner, we at Seoul Metropolitan Government will take every possible measure to protect the public from illegal or unjust acts, and particularly those associated with moneylenders.
Our measures will concentrate on cracking down on moneylending businesses, which have been the subject of numerous complaints submitted to the Financial Supervisory Service (FSS). A joint team composed of members of the FSS and Seoul Metropolitan Government will visit moneylenders to examine whether they are complying with the regulations on the highest allowable interest rate, the amount, and conditions and ads. Fines or administrative dispositions, such as the suspension of business, will be imposed on businesses found to have violated the regulations.
Seoul Metropolitan Government, jointly with autonomous district offices, will examine 4,412 money lenders and pyramid scheme businesses to determine whether they are engaging in illegal business practices. Some 1,939 businesses were examined by the end of August. Stringent administrative dispositions – such as cancellation of registration (218 businesses), suspension of business (22 businesses) or fines (270 businesses) – were imposed on moneylenders found guilty of such violations as having an unclear location of business, columns that should be filled in by borrowers, failures to observe the terms of loan contracts, and false or exaggerated advertising.
We at Seoul Metropolitan Government are also taking measures to crack down on any persons involved in an unregistered moneylending business.
The bill for a law providing special judicial right to local governments concerning moneylenders is due for submittal to the National Assembly and, if passed by the National Assembly, we will be able to control these illegal businesses more stringently.