News / Korea / yonhap_finance
Financial Services Commission Issues Warning Against Illegal Lending During Chuseok Holiday
Finance · Finance/Rental/Leasing · yonhap_finance · 2026-09-11
The FSC has released safety guidelines and support resources to protect consumers from illegal high-interest lending scams during the Chuseok holiday.
What Happened
Illegal Lending Alert: The Financial Services Commission (FSC) has issued a warning regarding the rise of illegal lending schemes targeting individuals in need of quick cash during the Chuseok holiday. Consumers are urged to be cautious of predatory advertisements on social media and text messages promising easy, no-collateral loans.
Prevention Guidelines: The FSC advises citizens to first check for eligibility for official government-backed financial products and verify the registration status of lenders. It is critical to avoid any loan agreement exceeding the 20% annual interest rate cap and to maintain records of all communications and contracts.
Legal Recourse: Loan contracts with interest rates exceeding 60% per annum are legally void, meaning borrowers are not obligated to repay the principal or interest. Victims are entitled to request refunds for any payments already made and should report such incidents to the Financial Supervisory Service.
Support Systems: The FSC plans to assign dedicated personnel to handle reports filed during the holiday period to ensure swift victim relief. Support is available through the Credit Counseling & Recovery Service and local integrated financial support centers to help affected individuals recover.