Government Cracks Down on New Illegal Lending Schemes Posing as Voucher Sales

The government has launched a crackdown to prevent a new form of illegal private lending that deceives people by pretending to buy and sell vouchers, effectively offering loans. This measure aims to prevent vulnerable citizens from falling into high-interest predatory lending.

The government will concurrently shut down related internet cafes, prohibit the creation of similar cafes, and expand investigations into cafe operators.

The Office for Government Policy Coordination held an inter-agency task force meeting to eradicate illegal private lending and announced plans to strengthen crackdowns on such schemes disguised as voucher sales.

Regarding illegal private lending disguised as voucher pre-sales, the government will apply the Loan Business Act considering the substance of the transactions and will treat repeat offenders as illegal private lenders.

Yoon Chang-yeol, Senior Secretary to the Prime Minister for State Affairs Coordination, said the government would focus on the substance rather than the form when cracking down on irregular, new types of illegal private lending and would respond to ensure victims are compensated.

Victims of voucher pre-sale scams will receive assistance through a one-stop support system. If illegal lenders sue victims for fraud for failure to repay vouchers, legal aid will be provided through the Korea Legal Aid Corporation.