Seoul Metropolitan Government targets traditional market vendors and small business owners
Strict action against unregistered lending operations
Illegal advertising phone numbers to be blocked
Seoul's Civil Justice Police Bureau announced Sunday it will launch an intensive investigation through next month to stamp out illegal private lending targeting traditional market vendors and small business owners — a practice that surges around the chuseok holiday when demand for short-term funds spikes.
The Seoul Metropolitan Government ran a similar crackdown on illegal lending targeting small business owners in traditional markets from January through March, when the Lunar New Year holiday fell.
High inflation has driven up demand for short-term operating funds as merchants rush to stock holiday goods and build inventory, leaving small self-employed business owners who cannot access mainstream financial institutions at heightened risk of being targeted by illegal high-interest lenders. Seoul said it is activating a preemptive enforcement system in response.
The investigation will focus on four types of violations: daily installment loans charging annual interest rates above 20 percent, illegal operations by unregistered lenders, the deduction of interest upfront and collection of unlawful fees, and illegal lending advertisements distributed via street flyers or posted online and on SNS.
Investigative units will be concentrated in major commercial districts with high business density and strong holiday financing demand, including Jongno-gu, Jung-gu, Yeongdeungpo-gu and Dongdaemun-gu.
To block illegal lending advertisements, the bureau will swiftly collect business-card-style flyers distributed near traditional markets and activate its internal "Daepokiller System" to cut off phone numbers used in illegal ads, preventing further harm. The bureau will also work with merchant associations to broadcast in-market public announcements and distribute 20,000 victim-prevention leaflets to strengthen on-site outreach.
The bureau urged anyone who has suffered losses from illegal private lending or witnessed related criminal activity to report it promptly. "This is a period when we are particularly concerned about illegal lending — including ultra-short-term, high-interest daily loans — targeting traditional market vendors and small business owners who are financially stretched ahead of chuseok," said Lee Chang-seok, director of the Seoul Metropolitan Government's Civil Justice Police Bureau. "We ask anyone who suspects they have been victimized or spots an illegal lending advertisement to come forward. Seoul will root out illegal private lending through thorough on-the-ground enforcement."
ikson@heraldcorp.com
