President Lee Jae-myung said Monday that "illegal loans exceeding legal limits are void."
Lee made the remarks by reposting a message from Financial Services Commission Chairman Lee Eok-won on X, formerly Twitter. He added that "(illegal loans) do not need to be repaid."
Chairman Lee had earlier posted on X that "an amendment to the Enforcement Decree of the Lending Business Act was approved at the Cabinet meeting," adding, "Reporting damages from illegal private lending will become easier, and blocking crimes will become faster. The government will stand together with victims so they can get back on their feet."
Under the amendment to the Enforcement Decree of the Lending Business Act, which was approved at the Cabinet meeting on the 28th of last month, the reporting form will be revised so that victims of illegal private lending can provide specific details such as creditor information, damages from illegal debt collection, and financial transaction records. The revised form classifies reporters into three categories: victims of illegal private lending, parties related to victims, and third parties. It also requires specific information on creditor details, loan conditions, and damages from illegal debt collection to support victim relief measures. Response items will be structured as multiple-choice selections whenever possible.
