Loan shark who drove single mother to suicide gets sentence cut to 3½ years on appeal

A loan shark who drove a single mother in her 30s to her death through high-interest lending and illegal debt collection was sentenced to three years and six months in prison on appeal.

The Third Criminal Division of the Seoul Northern District Court, presided over by Chief Judge Heo Myeong-san, overturned the original four-year sentence Friday and handed down three years and six months to the defendant, identified only as Kim, 33, who was indicted on charges including violations of the Act on Registration of Credit Business and Protection of Finance Users. The court also found Kim guilty on some counts of violating the Act on Regulation of Concealment of Criminal Proceeds — charges on which he had been acquitted at the first trial — and ordered the forfeiture of approximately 7.7 million won ($5,600).

Kim was charged with lending money without registering as a credit business between July and November 2024 and collecting interest far exceeding the legal cap. He also faced charges of illegal debt collection, including sending threatening messages to borrowers' family members and acquaintances. During that period, a woman in her 30s who was raising a kindergarten-age daughter on her own died by suicide in September 2024 after leaving a note, having been subjected to Kim's illegal collection tactics.

The court noted that Kim had charged annual interest rates ranging from 1,233 percent to as high as 6,083 percent through his unregistered lending operation. "Extracting excessive interest from ordinary people in desperate need of quick cash inflicts severe financial and psychological harm on economically vulnerable debtors and undermines the order of financial transactions — the social harm is immense," Chief Judge Heo said.

On the illegal collection methods, the court said Kim "used deeply offensive personal attacks and profanity against borrowers, their families and acquaintances, inducing fear and shame," adding that "in light of the duration and frequency of the offenses, the degree to which the interest-rate limits were violated, and the content of the threats, the methods were extremely poor and the nature of the crimes grave."

The court further said the psychological and financial damage suffered by the victims appeared extreme, given that the crimes were committed not only against borrowers but also against their families and acquaintances. It also expressed doubt that the settlement payments Kim made were sufficient to heal the suffering the victims had endured.

However, the court took into account mitigating factors, including that Kim acknowledged some of the offenses and showed remorse, and that he reached additional settlements with victims during the appeals process, with those victims no longer seeking punishment.

Kim had received a four-year sentence at his first trial in April. Both Kim and prosecutors appealed the ruling, but the appeals court rejected most of the arguments raised by both sides Friday. The sentence was nonetheless revised after the court found Kim additionally guilty on the concealment-of-criminal-proceeds charges that prosecutors had added through an amended indictment during the appeals process. Prosecutors had sought eight years in prison at the final hearing on Aug. 8.

If you're thinking about self-harm or suicide, contact the Ministry of Health and Welfare's helpline at 1393 (available 24 hours, Korean only) or the Korea Suicide Prevention Hotline at 1393.