Actor Jang Dong-ju files complaint after taking out W4m loan, alleges illegal debt collection and threats

Actor Jang Dong-ju has filed a criminal complaint against a private lender, alleging illegal debt collection.

Jang filed the complaint with the Seoul Gwanak Police Station on Sept. 3, naming the lender, identified only as A, on charges of extortion and illegal debt collection, according to Ilgan Sports on Sunday.

Jang borrowed 4 million won ($3,020) from A in August to cover living expenses, according to reports.

The loan was due within one week, but Jang repaid the principal several days late, still within the same month.

Jang claims that A's side then demanded additional payments under the pretext of late fees, sending threatening messages including "I will go to your mother's house" and "I will contact your workplace."

Jang said the repayment amount A demanded would translate to an annual interest rate of 3,911 percent — nearly 200 times the legal ceiling of 20 percent. An amendment to the Moneylenders Act that took effect in July last year renders void not only the interest but also the obligation to repay the principal on any loan contract carrying an annual rate above 60 percent.

According to Jang, A is an unregistered, unlicensed lender operating outside the law.

Jang had previously disclosed that he accumulated debts of around 4 billion won stemming from a phone hacking incident and private loan issues. He announced his retirement from the entertainment industry in May, and in August said he had repaid 320 million won in loan principal. He said the large repayment left him short on living expenses, which is why he borrowed the 4 million won.

Jang has since resumed activities as a content creator, saying he has established a company called Useon Group and is pursuing entertainment-related projects.